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Thursday, 18 February 16
PANAMAX RATES OUT OF ECSA WERE STILL GAINING A PREMIUM OVER THE REST OF THE MARKET - INTERMODAL
IntermodalThe BDI moved further down last week, fact that hardly took anyone by  surprise as the lunar year holidays in Asia on top of the already depressed market left almost no space for improvement in earnings yet again Intermodal said.

Activity during the first half of the week as depressed across the board, while closer to Friday there as a sense that things had finally started moving a bit. The Panamax segment has been the only positive exception, over performing the rest of the market, with a small rebound in average earnings being noted, Intermodal said in its weekly report.

Given current levels, this upward reversal was of course no reason to pop open the champers, but despite the lack of significance it certainly signaled that rates for the segment could be bottoming. Whether this is true, will be more evident of course once Asian activity resumes, while a shift in psychology will also be needed on behalf of owners in order to give this small positive reversal support to extend further into a more substantial turnaround Greek shipbroker Intermodal said.

Lack of activity in the beginning of the week together with rock bottom sentiment has pushed rates for Capes south for yet another week, while  period numbers reported in the market complete the very challenging times ahead for the segment.

According to Intermodal, Panamax rates out of ECSA were still gaining a premium over the rest of the market, as increased activity led to slightly improved numbers in the region. In addition Rio Tinto is reported to be topping its bauxite production in northern Australia which, is definitely good news for the Panamax trade in the region that has suffered a lot on the back of depressed coal volumes.

Handymax/Supramax tonnage saw less activity ex USG last week, while in the East every few orders added extra pressure to owners, who nonetheless seemed to be resisting to fix much lower. The Handy size market kept it witnessing very thin activity across both basins, while period enquiry for the geared sizes as a whole remains scarce, Intermodal conluded.


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