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Thursday, 29 August 13
HANDY: THE PACIFIC MARKET STARTED HEALTHY THIS WEEK - FEARNRESEARCH


Handy
The Pacific market started healthy this week. We have seen many bauxite, iron ore and few coal fixtures. Ships passing Singapore were able to achieve 10-11k for trip to India and a bit lower for China. Short period orders remain active, 55-56k dwt spot in SE got fixes at low mid 9k for 3/5 months redelivery WW. However MEG/WCI and South Africa are still quiet.

Panamax
The Panamax market in Atlantic has experienced a quiet week so far, where rates still are weak and under pressure. Some fresh coal orders have not covered the growing list of open positions and rates per mt are still falling as well as far below the T/C average or index level. T/a now pending around 7k and fronthaul being fixed in the 14 k+ region.

Question if there will be sufficient front haul's to cover up for the number of vessel en-route to US Gulf. Pacific on the other hand continues to firm probably due to many Cape stems now being split into Panamax stems. Pacific rounds been fixed in the 7k+ level up from mid 6 last week. Forecast of good harvesting volumes in US gives some hope of an active grain season, but remains to be seen. Expectations for coming week are still slow. Period activity limited after some period deals were concluded in the mid 9´s last week.

Capesize
It´s been an interesting week with high levels being traded in the FFA market (highest traded for Q4 USD 22,500). The Physical has overall remained strong, with decent numbers being done for west Australia/China and stronger TC rates being fixed for Pac rounds. The Atlantic however has remained weak with lack of enquiries for nearly a week, resulting in number of spot ships increasing. Index rate levels for transatlantic rounds have however remained unchanged.

Period bids have been strong, but with the expectations for a great Q4 owners have been reluctant to let their ships go too early.
Source: Fearnleys AS

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