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Thursday, 29 January 15
CAPE MARKET IS STILL STRUGGLING WITH LOW DEMAND AND LOW COMMODITY PRICES

Handy
Supramax rates are heading south with slipping rates all across the block. USG activity is slow with mid-week levels in the mid 8.000s, Fearnresearch said in its latest weekly report.

Broker Fearnleys AS further said in its report, the typical scarp Cont/Turkey will bring Owners about same return - mid 8.000 and Fronthaul Wafr via ECSA 7.000. In the Far East the negative trend is just as clear, with typical China positions not even able to secure 6.000 for a round. For trips to PG alt WC India premium achieved may result in just above 7,000/Day. South Africa business back to India is done at about 7 + 100 GBB. Period activity is slow, but good Ultramax units have been able to secure healthy 9,500 for 3 to 5 months.

Panamax
Commenting on Panamax, the broker noted that, the week started out at low levels with low activity, and as the week went on it only got worse. In both hemispheres we see a general lack of cargoes in the market and it is not unusual that ships have to idle for a few days before they find new business.

According to broker, in the Atlantic most fixtures are done on APS basis and the real trans-Atlantic return is not more than around USD 3,500 daily. Fronthaul took a big hit from already depressed levels this week. ECSA/China levels dropped from 12,000+200,000 to around 11,000 +110,000 and USG/China on voyage has now been done at USD 28 pmt which gives a TC return around USD 9,000 with delivery on the continent. In the east ships are idling while considering what to do. The options are around USD 3500 for time charter trips or wait for something to happen and the market to improve. The period market is also coming down, we saw a nice/modern ship fixed this week for 1 year at USD 7250 per day.

Capesize
The cape market is still struggling with low demand and low commodity prices. Rates in both the Pacific and Atlantic are under pressure, and every positive spike in rates is killed by charters holding back for a few days. There are expectations for improvements soon, but freights around usd 10 for Tub / Qd for March are making the picture cloudy, broker Fearnleys commented on Cape



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