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Sunday, 27 May 12
THE FREIGHT MARKET FROM INDONESIA TO INDIA WAS WEAK - VISTAAR


COALspot.com - The BDI continued to fall for the fourth straight week and the BDI fell by 9.38 pct this week closing at 1,034 points.

The Cape Size and Panamax index also fell by 12.80 pct (closing at 1,424 points) and 15.00 pct (1,083 points)  respectively. The Supramax and Handy size index saw a slight increase and closed at 1,118 points (up by 0.90 pct ) and 651 points (up by 1.88 pct) respectively.

The freight market from Indonesia to India was weak and few spot vessels seen looking for employment.  The spot fixture rates for Supramax in SE Asia remained weak with vessels trading around US$ 7,500 delivery South China. Short period rate for Supramax reported around US$ 10,500 - 11000 per day and for Panamax around US$ 8,500 delivery Far East.

Iron ore price and steel prices were at the lowest in last six months and show a weak steel demand. The iron ore movement will remain a very important factor for bulk trade as it accounts for about 30 pct of seaborne trade on capsize vessels. Uncertain outlook for steel demand and fall in iron ore prices is a worrying factor.

The average charter rates was at Cape/US$ 6426 per day , Panamax / US$ 8633 per day , Supramax / US$ 11,694 per day and Handy size/US$ 9,702 per day.

The futures for three years (2012-2015) was at around Cape/US$ 15,000 per day, Panamax / US$ 10,500 per day, Supramax / US$ 10,500 per day , Handy size/US$ 9,000 per day.

The supramax index in the feast (S8 route) was down by 23.45 pct and closed at US$ 7,136  per day (last week US$ 9323 per day) and S7 route  was down by 15.51 pct  and closed at US$ 7,055 per day (last week US$ 8,350 per day) . Both routes likely to be soft next week.

The congestion in EC Australia was at 78 vessels this week (last week 69 vessels).  The vessels waiting at main coal loading ports were at Haypoint / 4, DBCT/7, Gladstone/12, Abbot Point/3, New Castle/36, Port Kembla / 15 vessels. On the WC Australia iron ore vessels waiting was at 34 vessels (last week 31 vessels).

The Brent crude oil prices remained almost at same levels as last week and closed at US$ 106.78 per barrel(last week  US$ 106.88 per barrel) and bunkers prices also remained soft closing at US$ 653.50 pmt (last week US$ 648.00 pmt)for IFO 380 cst ex Singapore on 25th May 2012.

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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