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Thursday, 18 July 13
THE CAPE MARKET APPEARS TO BE HOLDING FIRM - FEARNLEYS AS


Handy
In the Pacific, market maintained similar levels during the week. There is several Indo coal orders in the market, ships passing Singapore fixed at around 11k for trips to China and between USD 10-10.5k for trips to India. WCI remains quiet with no stems being circulate. Tonnage spot in ECI fixed APS S.Afr for trip to Feast at high 8k+280k gbb. More cargos from S. Africa expected for 1st half August. For short period, owners targeting around 10k where chrtr aiming lower.

Panamax
After a dull week we finally saw some improvement in the Atlantic. Rates increased USD 1000 from last week after prompt cargoes entered the market, making the Cont positions quite attractive. Fronthauls followed the positive trend with an increase of close to USD 2000 with higher export from US Gulf and USEC. In the Pacific the rates climbed close to USD1000 due to an active Indian market. No change at backhauls, close to zero.

Capesize
The Cape market appears to be holding firm, with the 4TC number holding at a steady and healthier USD 13,920 at the time of writing, marking almost no change w-o-w. West Australia has been actively fixed at steady rates between USD 7.70 and 7.80 pmt. Cargoes from Brazil to China have appeared over the last few days hopefully helping to absorb the increasing number of ships ballasting toward the Atlantic basin. Meanwhile tonnage in the North Atlantic remains tight with a reported TA round fixed at good 17k per day. August + September FFA contracts have pushed slightly to USD 11,190 and 11,490 respectively, indicating improved sentiment for the remainder of Q3. Consistent period numbers have also been concluded this week, with USD 15,500 and 14k per day reportedly paid by charterers for 3 and 2 years respectively.
Source: Fearnresearch

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