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Thursday, 22 January 15
PANAMAX: A SOFTER TONE AND OVERALL A SLUGGISH MARKET - FEARNLEYS

Handy
The handy and supra market has experienced yet another week with slow activity and softening rates in both hemispheres, broker Fearnleys AS said its latest weekly report.

According to broker, there is a steady volume of cargos out of the USG, however those are outnumbered by available tonnage causing rates to slip. A typical scrap cargo from northern Continent to Med is paying around high 6k including the premium for the cargo. In the Pacific we also see the same tendency with slipping rates and trips via Indonesia with coal to India are currently seeing levels around 6-6,5k bss delivery Singapore.

Fearnleys noted that, the period market is also less active and little has been concluded this week.

Panamax
According to broker Fearnleys, a softer tone and overall a sluggish market in both hemispheres this week for the Panamax market. Despite some fresh inquiries, fixtures are done quickly and under last done.

Voyage rates in the Atlantic giving owners return well under index, which mid week stands below 6K for a round. Owners may see a premium for INL breach or particular Continent fronthaul requirements but volumes are limited. USG activity also reduced. Grain trading from ECSA is gradually becoming more active, but levels are so far moving sideways around 12.000 + 200k GBB bss APS or 23,50 on voyage. Despite expectations for the coming ECSA grain season, March and April cargoes are fixed just a fraction above spot levels. NOPAC volumes in the Pacific are reduced and levels are closing in at 5,000/Day, less for Aussie or Indo rounds and now bss APS. Period takers are willing to absorb good units around mid 7K for 4-7 months with a potential upside in Q2. For the spot market there are no signs of any rapid change.

Capesize
Commenting on cape, Fearnleys says, Capesize vessels are still not great, but at least some improvements seen for the big ships. Transtlantic levels up 15% on the back of combined coal and iron ore volumes, coming in at some US$ 13k for rounds. Increased demand also for fronthaul iron ore, giving transport work for a number of vessels idled off S. Africa and taking the Tubarao/Qingdao conference rate up a nominal 20% and some 35% in daily earnings to US$ 8,700.

Broker further noted that, all major Australian miners presently picking ships, with consequent improvements for pacific rounds of a similar 35% w-o-w to a still modest US$ 6k. Period interest up on improved spot and FFA levels, with most recently US$ 13k done for 180,000 dwt NB delivering ex yard S. Korea mid February for 11-14 months.



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