Fearnley's Market Report / June 17, 2015

Capesize Finally some excitement for the Capesize players; After a long period with more or less no activity in the Atlantic, there are finally more requirements bringing the transatlantic market closer to ships running costs, i.e. around the 7000 mark. The Tubarao/Qingdao route is up by almost two dollars in short time. In the Pacific, the demand out of West Australia has been fairly steady for some weeks now and rates on timecharter are similar to the ones in the Atlantic whilst c5 still holds in the lower 5’s. Consequently, there are increased interest in period tonnage as well, with values for a year approaching USD 12,000 daily. Panamax The market started off in a hectic way with fixtures done at well above last done. The consensus was that the rate hike was just for June dates, and would come off once these were covered - which seems not to be the case. Mid-week the TA’s are up around 40% w-o-w. Grains out of ECSA supporting the Atlantic market as well and owners are in time of writing asking USD 9k for rounds. Fhauls bss APS ECSA concludes at around USD 13,500 + USD 360k GBB. In the Pacific, we see RV being fixed at USD 6k, which is about 1k better than levels from last week. Supported by stronger FFA’s and spot market, the period market is back into play. A 77k dwt was rumored fixed at USD 8k bss delivery Point Comfort for a year. Handy The Handy/Supra market is firming in both hemispheres this week. The push in the bigger sizes has started to influence the smaller ships as well. Especially the USG is tighter for prompt ships and a healthy USD 17.5k was concluded for a trip from USG to India. In the Pacific we also see a good push in rates with Indo/India coal cargoes being fixed at around USD mid 8’s for good specked Smaxes. Owners fixing Indo/China will have to discount some from the India trades, but Supras are being fixed at around USD 7k for same. Period fixtures are scattered but shorter periods can achieve mid/high 7’s depending on delivery and speed/consumption figures. We do expect this rate climb to continue at least throughout the week.