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Wednesday, 15 October 14
PANAMAX: ACTIVITY IN THE PACIFIC WAS UNIMPRESSIVE

The Dry Bulk market noted another weekly decline last week, while the BDI moved below 1,000 points taking down with it expectations that a post holidays more active Pacific could provide some support to rates, said Intermodal broker.

Intermodal hopes that the Dry Bulk market could make a very big comeback during the last quarter are slowly abandoning even the most optimistic but saying that we believe that an upward correction is long overdue and should be materializing in the next couple of weeks. Whether the magnitude of such correction will put at ease those starting to worry that fundamentals remain shaky, remains to be seen, but given the signs activity in the bigger size segments we are not setting our expectations too high. According to broker's weekly report, rates for Capes remained under pressure throughout the week, while the segment was once more the weakest link across the board. Activity in both basins was limited, allowing those charterers who were active to hold on firmly to the upper hand.

Intermodal further said in its latest report that, the period market also took another hit last week, with sharp corrections being noted across most contracts. Rates for Panamaxes also noted a weekly decline, albeit of fairly small scale, while the Panamax period market remained in line with last dones. Activity in the Pacific was unimpressive as the end of holidays in China didn't bring along any significant improvements, while over in the Atlantic the USG provided steady flow of business.

Supras and Handies were also on the downward slide, as a drop in fresh inquiries in the Pacific, coupled with a softer week in terms of Stems for the Atlantic basin, meant that there was no significant support to be found in the market, Intermodal broker conlcluded.



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