1/24/2015

Fearnleys Dry Bulk Weekly Market Report - Jan 21, 2015


Chartering - Handy

The handy and supra market has experienced yet another week with slow activity and softening rates in both hemispheres. There is a steady volume of cargoes out of the US Gulf, however those are outnumbered by available tonnage causing rates to slip. A typical scrap cargo from Northern Continent to Med is paying around high USD 6K including the premium for the cargo. In the Pacific we also see the same tendency with slipping rates and trips via Indonesia with coal to India are currently seeing levels around 6K - 6.5K basis delivery Singapore. The period market is also less active and little has been concluded this week.
Chartering - Panamax
A softer tone and overall a sluggish market in both hemispheres this week for the Panamax market. Despite some fresh inquiries, fixtures are done quickly and under last done. Voyage rates in the Atlantic giving owners return well under index, which mid week stands below 6K for a round. Owners may see a premium for INL breach or particular Continent fronthaul requirements but volumes are limited. USG activity also reduced. Grain trading from ECSA is gradually becoming more active, but levels are so far moving sideways around 12.000 + 200K GBB - Gross Balast Bonus - basis APS - Arrival Pilot Station - or 23,50 on voyage. Despite expectations for the coming ECSA grain season, March and April cgoes are fixed just a fraction above spot levels. NOPAC volumes in the Pacific are reduced and levels are closing in at 5K day, less for Aussie or Indo rounds and now basis APS. Period takers are willing to absorb good units around mid 7K for 4-7 months with a potential upside in Q2. For the spot market there are no signs of any rapid change or improvement, unfortunately.
Chartering - Capesize
Still not great, but at least some improvements seen for the big ships. Transtlantic levels up 15% on the back of combined coal and iron ore volumes, coming in at some usd 13k for rounds. Increased demand also for fronthaul iron ore, giving transport work for a number of vessels idled off S.Africa and taking the Tubarao/Qingdao conference rate up a nominal 20% and some 35% in daily earnings to usd 8700. All major Australian miners presently picking ships, with consequent improvements for pacific rounds of a similar 35% w-o-w to a still modest usd 6k. Period interest up on improved spot and FFA levels, with most recently USD 13K done for 180.000 DWT NB delivering ex yard S.Korea mid Feb for 11-14 months.