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Saturday, 26 March 11
THE FREIGHT MARKET REMAINED A BIT VOLATILE THIS WEEK - CAPT. REDDY


COALspot.com - "The freight market remained a bit volatile this week", says Capt. Reddy, director of Vistaar Shipping Singapore.

However, the market managed to maintain almost the same levels as last week , with all the sectors up by 3-7 pct except for Panamax index which was slightly softer, he further said.

The BDI continue to rise and was up by 54 points (up by 3.53 pct) and closed at 1,585 points. The Cape index gained maximum this week , up by 118 points (up by 7 pct). The Panamax was slightly lower and was down by 56 points (down by 0.76 pct).  The Supramax and Handy size index was up by 29 points (up by 1.84 pct) and 25 (up by 3.31 pct) respectively.

The Supramax vessels opening FEast/SE Asia region were seen holding at healthy levels and fixed at around US$ 16000 delivery N.China. 

The freight markets may hold for next couple of weeks. However there does not seem to be any strength in the market and in the long run seems the freight would be soft . The effects of Japanese ports closure and Libya , Yemen , Syria  crisis is likely to have effect on shipping and oil prices.

The average charter rates was at Cape/US$ 10,718 per day , Panamax/US$ 16,693 per day , Supramax/US$ 16,762 per day and Handy size/US$ 11,704 per day.

The Supramax index in the feast (S6 route) was almost steady and slight softness was seen towards end of the week at US$ 15,991 per day (last week US$ 15,995 per day). The EC India/ China (S7 route) continued to softened and was down by 2.07 pct (down by US$ 330 per day) and closed at US$ 15,608 per day (last week US$ 15,938 per day).  The S6 route is likely to continue to be steady/soft , whereas the S7 is likely soften further.

The futures for three years (2011-2013) was at around Cape/US$ 19,000 per day, Panamax/US$ 16,500 per day, Supramax/US$ 15,500 per day , Handy size/US$ 11,500 per day.

The congestion in EC Australia almost at same levels at 84 vessels this week (last week 72 vessels). The vessels waiting at main coal loading ports were at Hay point/7, DBCT/21, Gladstone/12, Abbot Point/3, New Castle/34, Port Kembla/7 vessels. On the WC Australia iron ore vessels waiting reduced to 39 vessels (last week 42 vessels).

The waiting at Indian ports for coal vessels was quite normal.

The crude oil prices remained firm and closed at US$ 115.95 per barrel (last week US$ 114.51 per barrel). Bunker prices was almost at same levels and closed at US$ 643.00 pmt (last week US$ 643 pmt) for IFO 380 cst ex Singapore on 25th March 2011.

Click here for Vistaar’s forecasted (terms & conditions apply) spot freight rates for coal & Iron-ore cargo for specific routes (cs)
Reported by Vistaar Shipping, Singapore



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