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Thursday, 04 February 16
CAPESIZE: WEST AUSTRALIAN TO CHINA HAS BEEN CONCLUDED AT US$ 2.85 PMT AND THE C3 MARKET REMAINS INACTIVE - FEARNLEYS
FearnleysCapesize
As everyone is getting ready for the Chinese new year, already depressed rates are under further pressure.

According to Fearnleys, West Australian  to China has been concluded at US$ 2.85 pmt and the c3 market remains inactive. Period rates for one year remains in the low US$ 5,000s. Owners are exploring the opportunities for laying up tonnage, but so far few ships have actually been laid up.

Panamax
Fearnleys’s this week’s report says, freight rates remain at historically low levels for panamaxes. In the Atlantic basin a decent flow of cargoes have been seen this week but, they covered at rock bottom levels. Only flashes are grains from USG and ECSA paying up from last week.

The broker further added that, the Fertilizer from Baltic to China pending amd mid teens which give the owner less than 5k in return on TC. With the China new year coming up, Fearnleys anticipates the activity to drop further in Feast. Nopac business paying around 2.5 - 3k aps and Aussie/China paying around 3k+40 aps. Some periods with wide spreads concluded and we estimate good panamax obtain 4250 for 6-7 mos up to 1 year now.

There are a lot of insecurity around and many owners have to renegotiate hire rates in order to survive the coming months, Fearnleys says in its latest report.

Supramax
commenting on Supramaxes, Fearnleys says, Suparamaxes do not see any light at the end of the tunnel.

It seems that the market moves in line with the bunker prices and as such has actually see the bottom. With period fixture in the mid US$ 3000's and small movements in the trip rates still in the US$ 1000-1500 level, there is little reason to rejoice.

Having said that, the market can only go one way, and as such we may see upward movements on the back of seasonal demand, but it is unlikely to be sustainable, the broker concluded. 


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