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Sunday, 03 July 11
MONSOON IN INDIA PUSHED FREIGHTS UP FROM INDONESIA TO WC INDIA - VISTAAR


COALspot.com - The BDI continued to hold closing just 2 points below last week at 1,422 points which was supported by Cape index which was up by 71 points closing at 2,045 points. The Panamax index was the most affected down by almost 10 pct and closing at 1,560 points. The Supramax and Handy size index was marginally down by 16 points (1.21 pct) and 2 points (0.28 pct) closing at 1306 points and 719 points respectively.

The market appears to be bottoming out with regard to Supramax in the Far east/SE Asia/India region where ships are being fixed around US$ 10,000 per day. However short period rates still remain around US$ 13,500-14,000 per day for Supramax and Panamax vessels. Panamax vessels also reported fixed around US$ 10,000 per day for single trips.

"Due to monsoons freights from Indonesia to WC India was going at a premium and Supramax demanding almost US$ 14,000 per day for single trips. The freight levels expected to hold next week with all the futures up end of the week", says, Capt. Reddy, Director of Vistaar Shipping, Singapore.

The iron ore imports by China has slowed down with drop in steel demand. However it is expected that overall demand for the balance year will be fairly good.

The average charter rates was at Cape/US$ 13,193 per day , Panamax/US$ 12,709 per day , Supramax/US$ 13,658 per day and Handy size/US$ 10,563 per day.

The Supramax index in the far east (S6 route) was down by 2.18 pct and closed at US$ 10.159 per day (last week US$ 10,386 per day). The EC India/China (S7 route) also softened by 2.78 pct and closed at US$ 9,624 per day (last week US$ 9,900 per day). The S6 rates likely to be steady/firm and S7 likely to be soft.

The futures for three years (2011-2013) was at around Cape/US$ 15,000 per day, Panamax/US$ 14,000 per day, Supramax/US$ 13,500 per day , Handy size/US$ 10,500 per day.

The congestion in EC Australia reduced to 63 vessels this week (last week 70 vessels). The vessels waiting at main coal loading ports were at Hay point/4, DBCT/12, Gladstone/9, Abbot Point/1, New Castle/36, Port Kembla/Nil vessels. On the WC Australia iron ore vessels waiting also reduced  to 26 vessels  (last week 32 vessels).

The Brent crude oil prices softened and dropped by 6.92 pct to US$ 111.50 per barrel (last week US$ 105.42 per barrel). Bunker prices also softened and closed at US$ 654.50 pmt (last week US$ 634.50 pmt) for IFO 380 cst ex Singapore on 1st July 2011.

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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