January 16, 2017 – January 20, 2017 Weekly market report. Banchero Costa

Positive week on the Capesize market with rates increased in all basins, despite some signs of slowdown registered in the end of the week. The standard route from West Australia to Qingdao showed high $5's per mt agreed for very end January dates, while the timecharter rates were fixed in the region of $10,000/d. The standard route from Saldanha Bay to Qingdao was fixed around low $10's bss early February dates. Out of Brazil pretty low activity with rumours of higher fixtures done for prompt dates in the region of high $14's whilst Vale fixed a couple of vessels for slightly later dates at around low $13's. In the Atlantic Ocean the presence of more cargoes pushed rates at higher levels and a couple of nice vessels open prompt UKC were agreed at $16,000/d. On the period front an increased activity was registered showing also a couple of nice and modern vessels fixed at $12,000/d for 1 year bss delivery end of January/early February dates at the begin of the week. During the week both the spot and period market slightly softened showing standard Capesizes fixed in the end of the week around $10,000/d for 1 year.

During last week the market has shown a slight reduction in levels throughout the Atlantic and F East. Vessels ballasting towards ECSA have started lowering front haul levels with 79,000 dwt being reported fixed at $9,000/d + $400,000 bb for trips via ECSA to F East but good eco vessels still able to achieve around $9,500/d + $450,000 BB for similar business.  Discrete number of TransAtlantic business have been fixed with 80,000 dwt being reported at $13,000/d for trip to Skaw-Passero, tick less for a 75,000 dwt which was fixed around $12,500/d basis aps. From USG an 81,000 dwt was reported fixed via Panama to Spore-Japan at $14,750/d + $475,000 BB while a 76,000 dwt fixed bss dely Itacoatiara to China at $12,750/d + $275,000 BB. From Cont area a 77,000 dwt fixed failed at $11,000/d bss Belfast for trip via Riga to Italy while a 76,000 dwt was reported fixed bss Port Talbot for a trip via Murmansk to Jorf Lasfar at $9,000/d or in charterers option $9,200/d bss dop for a trip via USEC to Skaw-Gib.  In F East levels were seen on a lower side with trips via E Australia to India reported fixed on a 82,000 dwt at $6,000/d bss Taichung dely and $5,500 dwt level has been reported on similar size bss dely Taiwan for trip via Indo to India. NoPac RV being fixed on an 82,000 dwt bss Japan dely at $6,500/d with redely Spore-Japan, while on the period front an 80,000 dwt fixed 5-8 months bss Taichung dely at $7,750/d and a 73,000 dwt was reported fixed at $6,750/d for 1 year redely WW.

The market for the owners of the larger tonnage, including Ultramaxes, maintained its negative trend, with daily rates decreasing by another $200/400/d and volume of the enquiries further shrinking. An Ultramax got $3,900/d to carry steels from N China to SE Asia and another similar vessel delivering EC China was fixed carrying grain for an Australian RV at $5,600/d. A 58,000 dwt eco type delivering Indo was paid $5,000/d for a coal trip to China and a similar unit got $4,000/d for a RV from China via Indo. A standard 57,000 size with dely aps EC China agreed an extremely low $1,500/d for the first 70 days and $5,500/f for the balance for a long duration backhaul business to several ports in W Africa. Handysizes although suffering as well from a lower market, remained at higher levels. A 34,000 size got $4,500/d from China to WC India and 38,000 dwt delivering Vietnam fixed a trip with alumina via Australia to China at $5,500/d

Rates for business from MED/N Europe range registered another decrease with Handysizes showing slightly better results only on some trades. A Tess-52 was paid $8,000/d carrying clinker from Greece to W Africa, an Ultramax delivering S Spain got $9,250/d for 2/3 LL redely Atlantic, while another analogous unit delivering Gibraltar agreed a better $10,250/d for 2 LL, again with Atlantic redely. Scrap from Cont to E Med was fixed on a standard 55,000 dwt at $12,500/d and a similar type delivering at the same area got $7,250/d for a trip to the USG. An Ultramax delivering UKC agreed $10,250/d for 5 to 7 months period redelivery Atlantic. Handysize market showed larger interest for business loading out of the Med, a 27,000 tonner got $5,000/d from S Spain to the Cont and a 33,000 size loading coal from B Sea to E Med fixed $6,950/d. Clinker was load on a 35,000 dwt paid $9,600/d with dely SE Spain and redely Mauritania.

Rates for spot business out of the USG continued in a positive trend for owners of all sizes. An Ultramax delivering in the area fixed $20,000/d for a trip to Japan, a Handymax delivering USEC got $15,500/d via the USG to China and a 58,000 dwt open NCSA was said to have fixed aps USG to Spore-Japan range. On TA trade a 56,000 dwt fixed $16,000/d and a slightly larger type got $15,500/d from Venezuela to E Med. USG to N Spain trade showed a 34,000 tonner fixed at $13,000/d. A less bright trend was registered for tonnage loading S America. A 58,000 dwt was fixed for a trip to Algeria at $13,000/d and a 57,000 size got $10,400/d to Skaw/Passero range. Fronthaul trade was fixed with an Ultramax at $12,000/d with dely W Africa via Brazil to Thailand. From the same area a 33,000 dwt got $14,000/d to WCS America and another one got $10,250/d for a trip to Skaw-Passero range. A 38,000 dwt agreed $11,250/d from Vitoria via Recalada to Morocco and a 31,000 dwt got $7,500/d from Rio de Janeiro to the USG.

Despite of a slackening in chartering demand registered in these waters, an Ultramax delivering MEG fixed a trip to India with limestone at $10,250/d, and another one delivering at the same area was agreed for 4 to 7 months period at $8,500/d. A non-eco 56,700 dwt fixed $10,500/d aps S Africa for a trip to F East and a similar vessel delivering S India got $6,000/d for a trip with iron ore from WC India to China.

Banchero Costa and Co Spa 

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