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Thursday, 27 October 16
PANAMAX: FIRM ATLANTIC; TOPPISH PACIFIC - FEARNLEYS
PanamaxSupramax
The trend from last week is passed on. ECSA still strong with Supras from N Brazil to Med fixed at $9,000 to $9,500 daily.

According to Fearnleys, Cont and Baltic is encountering numerous cargoes, driving up the rates. Many owners will go to Med, 56,716-dwt allegedly went at $8,750 daily del Skaw, redelivery EMed. Healthy rates on front hauls with Supras achieving 5 digits. Rates for backhaul are still under pressure. Nopac rounds have been fixed around mid 6k for Supramaxes, while Supras from N. China to SEA is getting around mid/high 5k’s.

The Oslo-based broker says in his weekly report, Indo coal runs have softened this week with Supras achieving around mid 6k and same runs to India is paying around high 7k’s. Overall owners are looking to book forward cargoes while market is firm.

Panamax
Atlantic still firm, but Pacific seems toppish?

In the Atlantic, a steady flow of new business is still outnumbering the amounts of open vessels. Short hauls via Baltic/Murmansk remain at USD 10,000’s and trips out from Murmansk done at USD 13,000. Black Sea to Far East fixed at healthy 14,000 on good tonnage whereas front round haul via USG were concluded around 11,000’s + USD 325,000 gbb, the broker noted on Panamax. Fair activity in the Pacific, however, rates seems a bit toppish with Aussie rounds paying about USD 7,000’s. Furthermore,  NOPAC rounds are down from mid 7,000’s till just under USD 7,000. 
 
Period fixtures are scares, but mid USD 9,000s done with Atlantic delivery for 5-7 months and similar period with Pacific delivery hovers around mid USD 7,000.
 
Capesize
Commenting on Cape-size ships, the broker Fearnleys  noted that, after taking a serious hit this week, rates are still under pressure. Weaker demand in the Pacific is resulting in more spot ships and ships in ballast. Simultaneously there are hardly any spot iron ore cargoes from Brazil, a situation similar to what happened 4th quarter last year. 
 
The average drop in rates so far this week has been USD 500 - 700 daily but it is still difficult to tell when the floor will be reached, Fearnleys concluded on Cape.


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