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Thursday, 10 March 16
IT FEELS SAFE TO SAY THAT THE MARKET IS SLOWLY AND PAINFULLY REGAINING ITS BALANCE
PanamaxWith the BDI marking its third consecutive positive weekly closing, it feels safe to say that the market is regaining its balance; slowly and painfully without a doubt but given the performance of earnings during the past months these small upticks is all owners can hope for now, Intermodal in its latest weekly report.

The broker further noted that, once again, rates for Capes snubbed the upside, but we do expect to see sooner rather than later some sort of positive movement for apes as well. After all, an upward correction purely on the back of an overall improving market is now long due for the segment.

Looking ahead, according to Greece based broker, the jump in commodity prices on the back of Chinese policymakers committing once again to boost growth together with indications that a round of substantial iron ore restocking is coming up before summer, has pushed the price of the commodity over 20% up yesterday. Whether this cold further help the Capesize market is yet to be seen. Let’s not forget  that it has been the excess supply of tonnage and not actual volumes of iron ore imports that have been hammering rates.

According to Intermodal, Capesize vessels kept operating in an environment of limited enquiry and historically low rates, while an small upticks were quick to disappear as there are just too many vessels competing for very few cargoes across both basins. Fresh Panamax inquiries from East Coast South America continued coming up generously  this week as well, however the rest of the Atlantic including  the U.S Gulf remain rather slow.

The broker further said, the Pacific basin saw slightly improved numbers as well, with increased Australian coal cargoes providing support to rates in the region.

On the geared sizes front there has been a strong sense of optimism lately as ECSA has become very active while in the Pacific reported business was steadily above last dones, signaling a further improving market, the broker close its report positively.


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