Fearnleys Market Report - Week 37

CHARTERING - Handy

"We have experienced more activity in boith hemispheres this week. We see rates coming up for all trades. More cargo out of NCSA and USG is helping rates to edge up in the Atlantic. TA’s are now paying in region of Usd 10k while USG/Cont is getting fixed at ard Usd 15k. In the Feast it is a firm sentiment with vsls in Spore getting fixed at ard Usd 11k for India rounds. The nickel ore rounds via Philippines to China are being fixed at ard Usd 8,500. NoPac rounds achieving levels at ard Usd 11k while the period market is back in play. Short periods for Umaxes are being concluded in the mid 12’s while the smaller segments are seeing levels ard Usd 11-11,500."

CHARTERING - Panamax

"After last week’s rate increase in both hemispheres it seems that the mrkt is taking a breather. We noticed last week that the list of available tonnage in the Atlantic is growing and we see that coming into affect now with TA rates coming off ard Usd 1,600 w-o-w. At the beginning of the week we experienced a slow down much due to holidays in the Feast, but fresh cargoes were entering the mrkt. However the list of available tonnage is simply outnumbering the cargoes and causing rates to slip. The healthy levels achieved for Fhauls last week has come down this week when more ows are willing to go that direction. In the Pacific we see rates edging up as more Aussie rounds are being fixed and also India in urgent need for coal with a shortage at almost every power plant across the country. Pac rounds are now paying ard Usd 7,700 – up Usd 1,700 w-o-w. The period market is regaining some activity and strong rates are beeing seen for longer periods at ard 5 years with options attached. A kmax claiming to be holding excess 14k for same."

CHARTERING - Capesize

"The market is hoping to start the 4th quarter rally early, and the Pacific rates started to push upwards at the end of last week. The Australian miners continued to resist the upturn and have, so far, succeeded in capping the West Australian market at just under usd 9.00 despite healthy volumes. There are, perhaps, two main reasons for the lack of upward movement in these rate. The first being the low activity volume in the Atlantic, and the second being the owners faith in a 4th quarter rally prompting them to prefer a short duration Pacific round voyage in order to keep their ships still in 4th quartergame. Although the Atlantic volumes from Brazil to China are low, there has been some increased activity and rate increase in the transatlantic trade, with time charter numbers reaching the upper teens. Period has remained slow, though the supply of tonnage willing to commit to periods just under a year has increased, this again to take advantage of a near term healthier market. Reported fixtures for a year are around usd 23000 daily."