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Saturday, 04 July 09
FREIGHT FUTURE FOR 3 YEARS UNTIL 2012 WAS FAIRLY SOFT AROUND PANAMAX / US$ 16,000, SUPRAMAX / US$ 13,000 PER DAY


COALspot.com (Singapore):
According to Vistaar shipping, an experinced ship operator in Singapore, the freight market was soft with bit nervousness in the global economy recovery.

The BDI was down by 183 points and closed at 3,520 points. The drop again this week is mainly due to Cape which was down by 668 points and closed at 6,438 points.

The Panamax index gained by 210 points and closed at 3,027 points. The Supramax and Handysize index  was almost at same levels with a marginal drop by 15 points. The average charters rates at the close of the week was  at Cape / US$ 71,088; Panamax / US$ 24,254 ; Supramax / US$ 17,964 and Handysize / US$ 10,773.

The BDI is expected to be around 3,500 points next week also and there could be pressure downwards.

The congestion at Australian ports continues to be all time high to 123 vessels waiting off EC Australia. The congestion in Paradip and Haldia has been quite high and Haldia port severely affected by labor strike.

The easing of congestion will definitely put additional pressure on the BDI.

The iron ore and coal import by China seems to be holding however reports suggests that China may reduce the iron ore and coal imports in Q3 and this happens the BDI will be under pressure. The supramax and handysize vessels open in Far East continued to be under pressure and many vessels were ballasting south.

The ships opening in India continued to get premium for round voyages to South Africa and to Far East at around US$ 20,000-22,000 pday. The one year period rate for large supramax was at around usd 16,000 per day. Many owners were looking for short period rates to take advantage of the spot firm market, which probably seems owners may be seeing the market to be soft for next couple of weeks.

The future for 3 years 2010 / 2011 / 2012 was fairly soft around Cape /US$ 30,000 per day , Panamax / US$ 16,000 per day, Supramax / US$ 13,000 per day and Handysize / US$ 10,000 per day  said, Capt. Reddy, MD of  Vistaar Shipping, Singapore

The brent crude prices closed at US$ 66 and was soft and expected to be soft. The bunker prices for IFO (380 cst) prices ex Singapore was at US$ 405 pmt.

Vistaar shipping of Singapore expected the spot freight rates (indicative) on Supramax would be as follows:

Coal 

-Indonesia / EC India         :  US$ 13.00 / 13.50 pmt
-Indonesia / WC India        :  US$  16.00 / 16.50 pmt
-Richards Bay / WC India  :  US$  21.00 / 22.00 pmt
-Richards Bay / EC India   :  US$  22.00 / 23.00 pmt
-Queensland / EC India     :  US$  20.00 / 21.00 pmt

Iron Ore

-WC India / N.China            : US$ 18.00 / 19.00 pmt
-EC India / N.China             : US$  17.00 / 18.00 pmt



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