Fearnleys Market Report

Capesize Another disappointing week, considering we are well into the fourth quarter. There has been an ok number of fixturees from west Australia and Brazil, having improved rates to some extent but the great jump in rates is yet to be seen. FFA levels are not great, with consequently few period fixtures being concluded. Panamax The Atlantic market continue to suffer with limited activity especially in the north and consequently rates are under pressure. Some more iron ore orders cannot avoid falling rates in Atlantic, which are now paying around 4500 to 5000 USD depending duration. Fronthaul fairly steady and Fertilizer from Baltic to China paying around USD 25 while grain from US Gulf paying low 7000 for a good kamsarmax now. Expectations for Q4/end of year seems to disappear more and more, despite some owners still hope for an upswing before end of year. Handy The market remains flat with slower volumes whilst Coaltrans has been going on. Several owners have decided that they had better commit to period with prompt delivery rather than waiting and risking to have to heavily discount for early 2016 deliveries. This has pushed the Supramax numbers below USD 7000, and it is said that Ultramaxes are offering in the mid/lower 7000's with delivery in January next year. The relative premium in the Atlantic is tempting owner to position vessels there depressing the rates for backhaul further with vessel fixing at sub USD 4000. Otherwise the main coal route in Asia from Indonesia to India remains in the USD 6000 bss APS delivery, with Ultras achieving over USD 8000.