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Thursday, 25 September 14
LACK OF COAL BUSINESS PUSHING DOWN PANAMAX EARNINGS IN PACIFIC

Handy
In the Atlantic we see rates steady climbing upwards. More coal cargoes out of USG and USEC are helping the TA market which is up some USD 600 w-o-w. It is not a dramatic increase but clearly showing the trend for the Atlantic, said Fearnleys's Weekly report.

The broker Fearnleys further said in its latest report that, in the Feast however, we are seeing less activity and a clear sign of rates coming off. Supras open Singapore are achieving in region of USD 7k for trips to Thailand and around USD 11-12k for trips direction India. The NoPac rounds are trading around 10k bss delivery North China.

The short period market is still fairly active with vessels being fixed in region of USD 11-12k depending on specs and delivery, Fearnleys concluded on Handies.

Panamax
Fearnleys commented on Panamax, the sentiment is quite negative all over the board. The Atlantic is weak with growing tonnage lists and little arbitrage opportunities for the operators. Therefore the index is falling slightly every day and now the TA round is paying around USD 4250.

"In the Pacific we have seen a sharper fall in activity and rates; a Pacific round now pays around USD 6750/day. This drop in the Pacific is mainly because of a lack of coal business", broker noted.

As the only positive in today´s market is that the US grain season has really kicked off and is now soaking up vessels in the USG and the USWC. This is giving support to the fronthaul index. A fronthaul from the USG now pays around USD 15500 + 550k ballast bonus.

Broker said, the period market is not very active as the spread between owners and charterers ideas is very wide time being. Short periods have been reported around USD 9-10k.

Capesize
Although the activity level in the last two or so weeks has been high, with all the ore miners picking up spot tonnage, the market is decidedly soft and lacking in resistance, Fearnleys says in its latest report.

Even with the onset of Q4 fuelling hope in the market, and Vale who is rumoured to have taken some tonnage, the market has continued to steadily slip downwards.

The West Australian market has slipped from close to USD 9.00 two weeks ago to low USD 8´s last week, and presently to a level in the mid USD 7´s with no sign of having hit bottom despite the high number of fixtures. Vale re-emergence in the market has failed to make an impression and this lack of long haul volume paired with the lack of coal movement, has resulted in serious over supply of tonnage.

The present sentiment is gloomy, to say the least, and faith in a Q4 boom is dwindling, Fearnleys concluded on Capes.



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