CAPE
In the Atlantic the week opened with Tubarao/Qingdao paying
between $20.50 and $20.65 for mid-March cargoes and between
$20.70 and $20.85 for end March -mid April stems. A trans-
Atlantic run was done twice at $9.25 for coal Puerto Bolivar to
Rotterdam. There was numerous concluded deals on the key
route W.Australia/Qingdao emerging in the Pacific basin all done
at $7.90. Period business in the east paid $14,500 and $12,300
daily respectively for modern tonnage on 14-17 months and 4-7
months periods - both for prompt deliveries. Mid-week Atlantic
saw no change with rates holding at last dones, but very little
business reported done. Ubu/Beilun paid a steady $20.80. Rates
in the Pacific trended sideways. Dampier/Qingdao and Port
Hedland /Qingdao held at $7.90 but there were no many "fresh"
cargoes and it is obvious that the market needs another injection
of cargoes to see any improvement. As the week drew to a close
new business in the Atlantic was very scarce. A Narvik/Qatar
cargo was fixed at $20.25. Rates drifted sideways in the Pacific
with little fresh inquiry in the market. Abbots Point/China paid
$9.50 whereas Port Hedland/Qingdao remained at $7.90. On the
time charter front a 15 years old vessel 151,982 -dwt secured
$7,000 daily for an Australian round. The Baltic Capesize index
saw no change this week remaining at 1525. The Time Charter
Average route gained $58 to $5,979 daily.
PANAMAX
ATLANTIC
A week very similar to the previous one with rates sliding
downwards on a daily basis. There still is a long list of available
tonnage and just not enough cargoes to bring balance. Activity is
once again focused on East Coast South America but the supply of
tonnage is simply overwhelming the fresh cargoes that enter the
market. Transatlantic trips are being paid below $5,000 and those
to the east around $14,000. Some indicative fixtures reported
were: Lady Maria Luisa 2007 76,662 dwt delivery Recalada 5/10
March trip redelivery Skaw -Cape Passero $7,000 daily +
$200,000 bb – Cargill. Alpha Afovos 2001 74,427 dwt delivery
Malta 27 February/3 March trip via Black Sea redelivery Egyptian
Mediterranean $5,500 daily – Glencore. KT Birdie 2011 74,866 dwt
delivery Gibraltar 7/9 March trip via Kamsar redelivery Stade
$4,500 daily – Oldendorff. Lake Dahlia 2009 78,802 dwt delivery
passing Gibraltar 10/12 March trip via East Coast South America
redelivery Far East $15000 daily - Alfred C.Toepfer. Good Luck
2011 75,019 dwt delivery Praia Mole 15/25 March trip redelivery
Singapore -Japan intention steels $14,500 daily plus $450,000 bb
- STX Pan Ocean. Great Luck 1998 71,399 dwt delivery Jorf Lasfar
5/10 March trip via EC South America redelivery Singapore-Japan
$14,500 daily - Chinese charterer. Nuri Bey 2011 80598 dwt
delivery aps US Gulf 12/14 March trip redelivery Singapore-Japan
$15000 daily plus $450,000 bb - Archer Daniels Midland. Darya
Jyoti 2010 80545 dwt delivery aps USEC 12/17 March trip
redelivery Singapore- Japan approximately $14,500 daily plus
$450,000 bb – MUR.
PACIFIC
The pacific panamax market was overall stable the whole week.
There was interest from Charterers to take lme
panamaxes/kamsarmaxes in Far East for short period up to 1
year around $9,500 per day to $11,500 per day (for 1 year). The
pacific round voyage rate level for lme panamaxes/kamsarmaxes
was ranging during the whole week between $7,500 per day to
$9,500 per day level depending on vessel's position, the business
fixed and the specifications of the vessel. For Indonesia round
voyage lme panamaxes got fixed delivery south China at $8,500
per day.
HANDYSIZE/HANDYMAX
ECSA/WAFRICA/USG
Handy business in the Atlantic trailed slowly into the weekend, with
rates very 'ho-hum' according to sources. There were rumours of
tonnage fixed at port cost/bunkers only, but confirmation was
lacking. For east coast South America business, grain business
reportedly paid $34.50 for spot/prompt business to Algeria.
Reports of a better Atlantic Handy market was all talk as details of
improved concluded business has yet to emerge. A trip out was
reported done at $19,750 for a supramax There seemed to be an
uptick for rates in the Atlantic Handy sector, with sources reporting
supramax tonnage fixing at $14,000 daily plus a $300,000 bb for a
trip NCSA/Far East. A modern Handysize fixed ECSA/western Med
business at $12,350 daily for mid-March dates. It emerged that the
2011-built 55,783 dwt E.R.Basel went to D'Amico recently for spot
delivery in the U.S. Gulf for 3-5 months trading with redelivery in
the Atlantic at $9,500 daily. The 2008-built 32,162 dwt Orient
Dream was fixed to STX Pan Ocean for March 05-07 delivery
Casablanca for 12-months trading with redelivery worldwide at
$9,500 daily. 1997-built 45,600 dwt Global Ocean has gone to an
unnamed charterer for March 01-05 delivery La Pallice on a trip
with redelivery West Africa at $7,500 daily. Norden has the 2005-
built 33,733 dwt Chamchuri Naree for March 04-06 delivery wwr
Up River on a trip with redelivery Manzanillo at $15,000 daily. For
voyage business in the Atlantic, Bunge reportedly fixed a TBN for
spot/prompt loading 20,000-30,000 tons barley from Bahia Blanca
to Algeria at $34.50. 2005-built 56,029 dwt Fantasy Star has gone
to MUR for March 10-17 delivery north coast South America on a
trip with redelivery Singapore- Japan at $14,000 daily plus a
ballast bonus of $300,000. The 2011-built 30,000 dwt Niki C will
earn $13,000 daily from an undisclosed charterer for March 06-08
delivery aps Santos on a trip with redelivery in the western
Mediterranean/Casablanca range. Also unnamed was the charterer
of the 2006-built 28,447 dwt Shimanami Star, taking the vessel for
March 10-20 delivery aps Recalada on a trip with redelivery in the
western Mediterranean at $12,350 daily. 2011-built 56,000 dwt
Vienna Wood N going to Norden for Atlantic delivery on a trip with
redelivery Singapore/Japan at $19,750 daily. Cobelfret was said to
have fixed a TBN for March 08-17 loading 55,000 tons 10% bauxite
from Trombetas to Point Comfort at $14,50
CONT/MED/BSEA
Another week is over with some activity in the area. There were
some fresh cargoes due to the weather improvement. There were
reported some period fixtures especially for supramax vessels. 'Wu
Chang Hai' 1998 27,635 dwt delivery North Spain 7/10 March trip
via Continent redelivery East Mediterranean $6,500 daily – cnr.
'Trident Challenger' 2010 57,000 dwt delivery Continent early
March trip via Cape of Good Hope redeliver East Coast India
approximately $13,250 daily – EBC. 'Christos Theo' 2010 56,838
dwt delivery Bourgas 3/4 March 3/5 months trading redelivery
worldwide $11,750 daily – Hudson. 'Royal Fairness' 2011 55,654
dwt delivery Sea of Marmara spot about 3/5 months trading
redelivery worldwide approximately $10,750 daily – Cargill.
'Apageon' 2005 52,483 dwt delivery Diliskelesi spot 3/5 months
trading redelivery worldwide $9,500 daily – ABT. 'Orient Dream'
2008 32,162 dwt delivery Casablanca 5/7 March 12 months trading
redelivery worldwide $9,500 daily - STX Pan Ocean. 'Calypso
Colossus' 2009 55,100 dwt delivery UK Continent spot trip
redelivery USAC approximately $2000 daily – Norden.
FAR EAST
Market remained very firm. Nickel ore cargoes providing very
good support to the market and nickel ore traders able to obtain
big premium, hearing nice supramaxes ex South China were
trading at 15's for round voyage. Short period rated remained
around 10,500/11,000 depending vessel's specs.
VLCC
In the Middle East market, well in excess of 30 fresh fixtures were
reported this week, including Chinese COA lifting's. Of these,
most were bound for Eastern destinations. But, also a couple of
AG/USWC runs were concluded in addition to two or three of the
normal milk-run fixtures Saudi to the Mexican Gulf – all in all a
healthy amount of activity. Alas, it did nothing to lift owners’
spirit, if anything it appears the week will end on a much weaker
note than it started. Bunker prices are sniffing on all-time highs
on the back of the galloping crude oil prices, with futures for the
same trading even higher, adding insult to injury. The second
decade of activity held the key to the week – owners were
perhaps slower to realize the level of volume being ‘spirited’ away
quite quietly and efficiently with little or no effect on rates. The
bullish sentiment faded across the week with the realization that
3rd decade activity had begun in earnest. Those that had held out
in hope of better returns are now merely faced with the reality of
increased waiting time and softer rates. At the time of writing the
author expects ‘last done’ AG/Long East (W52.5) to be under-cut,
which should in turn lead charterers into prolonging their entering
of the market , putting further pressure on the sentiment
amongst owners. Going forward the all too familiar dynamic looks
set to be played out across next week – the waiting game, those
with the patience and belief in volumes, be it of available steel or
of Crude, will ultimately emerge with the spoils – though again
it’s all relative against the continuing poor re-turns. In the
Atlantic basin, activity held at recent, relatively robust levels with
a few fixtures reported ex West Africa, all of which were bound
for the East, with rates in the mid W50’ies.The list of "natural"
positions in the Atlantic remain short and well balanced, however,
with a falling rates in the Middle East Gulf more Owners will again
look at ballasting their ships to West Africa, giving Charterers a
larger choice of tonnage. Trans -Atlantic VLCC activity has been
virtually non-existent as chartering Suezmaxes proves more
profitable in the current rate climate.
SUEZMAX
The Suezmax market had a softer sentiment this week and saw
rates moved down on Western markets. In West Africa, 130,000
tonne rates for U.S Gulf discharge moved down from W75 to W70
by midweek and back up to W72.5 for close of business on
FrIday. Over-supply of tonnage was the main reason for this
downward movement as the West African programme was
covered up until 20th March dates. The Black Sea Suezmax
market saw rates drop W2.5/5 points for UKC-Med discharge
down towards W72.5/75 levels for 135,000 tonne stems. Cargo
enquiry picked up towards the end of the week but on the whole
tonnage was always in adequate supply for this market. The
Cross Med Suezmax market proved softer by W10 points over the
course of this period and settled at 130kt x W70 again due to
over-supply. Eastbound and Trans-Atlantic movements were
limited this week and generally both had a steady feel.
Med/Singapore around $3.6 million and Med/U.S Gulf around
130kt x W65.
AFRAMAX
North Sea
Throughout the week in the UKC and Baltic, excess tonnage has
made way for low rates for voyages throughout the area.
Although no lower numbers were re-ported than the W77.5 for a
Primorsk/UKC voyage and W85 for a Cross-UKC voyage, the
levels at the start of the week, no higher numbers were seen
either which made for fixtures to be easily fixed at the same level
of the last done. Unless there is a big clear out of ships next week
it looks unlikely that the fixing level will in-crease as currently the
market is more competitive for owners looking to fix their ships
as many vessels still remain.
Mediterranean
There was a busy start to the week and this allowed tonnage to
be thinned out as the week went on however rates remained at
W82.5/85 Cross-Med and W87.5 ex Black Sea. By the end of the
week due to the continued flow of cargoes, the list has thinned
and the owners are trying to push the rates up. On writing
owners are offering against a market quote Cross-Med in excess
of W110, with several other cargoes also trading we expect the
rates to reach three digit levels by end of the day.
Caribs
This week in the Caribs started very quiet and with rates at a
higher level from the week before it looked inevitable that the
fixing level would fall. After starting around the W125 level for a
Caribs/USG voyage and despite high bunker prices and some
disruption from fog in the USG, the fixing level by the end of the
week moved down to around W110 as the buildup of tonnage
caused by the quieter market allowed for multiple offers into
cargos and as a result reported fixtures were seen at lower levels.