Fearnleys Market Report October 15, 2014
Chartering - Handy
The Handy/Supra market continues to slide in both hemispheres. In the Atlantic we see rates come off some Usd 500 w-o-w for Tarvs. An oversupply of ships vs. available cgos causing rates to slip and the ECSA + USG market that has been keeping it alive recently, is now coming off. In the Feast we also see the same slowing tendency and rates for all routes are under pressure. Singapore positions are fixing in region of USD10,000 for trips to India whereas the Indo and Aussie rounds are being fixed in region og USD 8,000. Shorter periods are still being concluded at ard USD 10,000 or slightly above depending on delivery and specs.
Chartering - Panamax
Despite Coaltrans in Denmark and a very slow start to the week, rates have been edging up in both hemispheres. In the Atlantic, TA’s are now paying ard 7k on TC bss while the voyage rates are slightly lower. Ownes are able to secure 9 K for 2-3 transatlantic rounds. A steady flow of grains acitivtiy ex USG and iore ex ECSA is giving support to the fronthaul rates. In the Pacific we see the same tendency with especially coal cargoes into India showing the way. Owners receive a premium for going to India, above 7.000 via Indonesia. Aussie and NoPac rounds are paying in excess of Usd 8k even 9 k for good deliveries and eco spec . The Chinese government implemented their import tax on coal and questions arise as how this may affect the dry bulk market. Meanwhile, the period market is showing signs of a return with 4-7 months in the mid 8’s.
Chartering - Capesize
The market is still in the same negative shape as last week. In the far east a relatively good number of West Australia to China rounds are being concluded, but rates are further down presently being around usd 7,25/ 7,30 pmt. Appart from the Australian iron ore, little is going on in the east. In the Atlantic, the same negative trand continues as well, still with a lack of fronthaul cargoes. Period activity is scarce.