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Wednesday, 06 May 15
COMBINATION OF HOLIDAYS AND A SHAKY MARKET PUT ADDITIONAL PRESSURE ON RATES
PanamaxCOALspot.com: The combination of holidays and a shaky market is always a recipe for additional pressure on rates and last week was no exception. With Panamaxes erasing the upside of the week prior and the rest of the market still operating in an uninspiring environment, the BDI closed off on the red and below 600 points, while the small increase noted by the BCI had no substantial impact in actual numbers.

According to Greece based broker Intermodal,  things in the following days to also remain quiet, as with the Far East going through holidays this week enquiry is bound to be limited and rates are most probably going to move a bit lower as well.

Commenting on Cape, Intermodal says, Capesize rates noted some small positional increases last week, which nonetheless failed to substantially lift sentiment, while with the Pacific market feeling the void of National Holidays in the region this week, activity for the segment is expected to remain thin. The average rate for the big bulkers is still underperforming the rest of the market, while at the same time the price of iron ore is still correcting upwards. This is causing additional worries to emerge in regards to the Capesize trade, as once the Chinese restocking is over, it is possible that the improved price of the commodity will no longer be attractive enough to sustain imports at these levels.

The broker further noted that, the long weekend brought pressure on rates in the Atlantic Panamax market, while In the Pacific, very little happened for the segment as things got too quiet too fast in anticipation of the holidays in the region.

The Atlantic Supramax/Handymax market moved sideways throughout the week with the Pacific market remaining quiet at the same time, while the Handysize segment witnessed additional pressure across both basins, says Intermodal.


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