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Sunday, 19 May 13
FREIGHT RATES TO REMAIN UNSTABLE AND VOLATILE - CAPT. REDDY


COALspot.com – The freight remained weak this week with all the segments down.

The BDI, the Baltic Dry Index is a number issued daily by the London-based Baltic Exchange was down by 4.86 pct and closed at 841 points week ended 17 May 2013. Cape index followed BDI and down by 4.05 pct closed at 1326 points. The panamax sector  fell drastically (6.44 pct) closed at 930 points. The Supramax and Handymax was almost at same levels closing at 851 points (down by 1.73 pct ) and 553 points (up by 0.36 pct) respectively.

The iron ore market is on the downward trend indicating that the demand is slowing down. There is an another big news from China’s National Energy Administration which is considering a proposal to ban import of low calorific thermal coal. Presently China is importing large quantity of low grade coal and if the ban is imposed , there could be major affect in the freight market as well as coal prices.

The average charter rates was at Cape/$ 5,168 per day , Panamax/$ 7,418 per day , Supramax/$ 8,902 per day and Handy size/$ 8,165 per day.

The futures for three years (2013-2015) was at around Cape/$ 14,000 per day, Panamax/$ 10,000 per day, Supramax/$ 10,000 per day , Handy size/$ 9000 per day.

The supramax index in the far east (S8 route) was down by 1.65 pct and closed at 8,161 per day (last week $ 8,298 per day) .The route S7 was at same levels closing at $ 7875 per day (Last week $ 7,875 per day) .  The freight market in this sector is expected to be soft next week.

The Brent crude oil prices was up by 0.70 pct closing at $ 104.64 per barrel (last week $ 103.91 per barrel). The bunker prices was also lower closing at same levels and closed at $ 614.00 pmt (IFO 380 cst ex Singapore on 17th May 2013).

Baltic Dry Index : Down
Cape index: Down
Panamax index : Down
Supramax index:
Up
(as of 17 May 2013)

Click here for Vistaar’s forecasts (terms & conditions apply) for spot freight rates for coal & Iron-ore cargo for specific routes (cs)



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