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Wednesday, 25 June 14
THE PANAMAX MARKET REACHED FRESH LOWS FOR THE YEAR, SAYS INTERMODAL

COALspot.com: The Dry Bulk market closed off the week noting a slight decrease, but this image of stability is merely representative of freight rates overall. According to the latest weekly Research from Intermodal, In fact, the BDI would have slumped yet again if it wasn’t for the positive reversal of rates for Capes Wednesday onwards, which counterbalanced the bad performance of the rest of the market that persisted throughout the entire week.

According to the shipbroker, the good news is that, with the price of iron ore hitting a 21-month low last week, we have witnessed some traders getting back into action and although this is a partial rather than a full on return, it is nice to see some-thing moving following some very quiet weeks.

According to Intermodal, the major beneficiary of this recent development was no other than Capers, which witnessed substantial rate improvements in the Atlantic, with the fronthaul from Brazil enjoying a nice surge on the back of firming activity attributed to iron ore majors of the likes of Vale. The Athens-based shipbroker added that, we are not sure whether this trend could last though, as we have already seen things steading already and it could be that some slight softening is just around the corner.

As far as the rest of the market is concerned, things were far from rosy though, Intermodal mentioned. The Panamax market reached fresh lows for the year, with over-supply of tonnage in both basins eliminating any positive effect from the fresh enquiry that was coming through. The average rate for the segment, Intermodal said currently stands below $ 4,000/day, a level last witnessed in October 2012.

Intermodal concluded its analysis by noting that, in the smaller size segments “ we didn’t witness any improvement either, with rates for Supras ex-USG and ECSA remaining under pressure and Handies having to deal with uninspiring activity all around for yet another week.”

Dry bulk market as well coal market have lost directions and struggling for survival.



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