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Thursday, 19 May 16
AUSTRALIAN IRON ORE CARGOES PUSHED UP THE FREIGHT RATES FOR CAPE THIS WEEK - FEARNLEYS
FearnleysCape
It has been a big jump in the freight rates for Cape size this week, says Fearnleys in its latest weekly report. All of the Australian iron ore miners have been very active, which has pushed up the freight on west Aussie/China route from around USD 3.50 pmt to USD 4.50 pmt.

Fearnleys further noted that it does seem that the Australian miners are trying to sell as much as possible of the iron ore while the iron ore prices are good. Presently iron ore prices are around USD 55 pmt, but all the miners expect the iron ore prices to drop to considerable lower levels in months to come. The Atlantic market has not seen the same increase in activity, but also here the freight rates have pushed up. The average of the 5 TC routes have gone from mid USD 5000 to high USD 7000.

Panamax
Commenting on Panamax size ships Fearnleys  says, following some early week holidays, the week got to a slow start coming from a sideways moving market. However, overall the tendency is slightly positive with futures reported somewhat above last done in both hemispheres. In the Atlantic, some Charterers have had to pay up considerably to cover their requirements, and futures are done both in the stronger 6k' and 7k's on T/C. Voyage rates are not firming up to the same extent through. ECSA grains are still active with 7400+240k done on LME basis APS. Business in the Pacific is repeatedly done well into the 5k range, either for NOPAC, Aussie or Indo rounds. Short period in the mid 5k's and even fair 6250 now done on a Kamasarmax for a year, delivery Singapore.

Handy
It was a slow start to the week with holidays in most European countries out for holiday, commented Fearnleys on Handy-size ships. “ We see trips from the Med to the US fixing in region of USD 4500 and the return leg into Med at around USD 10k”, says Fearnleys. In the Pacific, Fearnleys commented, we see the same stand-off as last week with big gaps between bid/ask. Singapore/ China being fixed at around 5k and destination India at 6.5k. Period market been quite except for some shorter periods concluded end last week in the 6's.


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