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Thursday, 27 April 17
PACIFIC IS SOFTENING WITH MORE TONNAGE OPENING AND LESS COAL ORDERS AROUND - FEARNLEYS
FearnleysSupramax
Relatively slow week, with both basins showing signs of cooling down. Although grain cargoes out ECSA and ECCA on Ultras still delivered good levels, Fearnleys said in its latest weekly report.

Grain cargoes out the Black Sea on fhaul paid around 15-16k daily, and from the Black Sea to Cont around US$ 8-9 k daily. Usual scrap runs from Cont to Med still at around US$ 15k daily.

Fearnleys says the sentiment in Pacific is softening too with more tonnage opening and fewer coal orders around. Indo/China is paying around mid US$ 9k for with Singapore delivery and Nickel Ore ex Philippines to China is being concluded around similar levels or lower. China trips to MEG/WCI is paying around mid US$ 8k, while ECI/Bangladesh destination gets a bit more.

Panamax
Commenting on Panamax, Fearnleys says, activity in the Panamax market has slowed down quite substantially the last week, especially in the Atlantic region putting a downward pressure on rates across all routes.

TA and FH rates are respectively at levels around high US$ 10K’s and mid-US$ 16K’s. The Atlantic market is expected to slide further in the coming days with negligible fresh biz. Less activity out of ECSA contributing to a Pacific market struggling to absorb all the tonnage available and a transpacific RV is at the time of writing facing levels around low US$ 10k’s. Levels obtained now, and the falling forward curve could be seen as in line with historical seasonality as summer is approaching. FFA’s, May is priced at mid-US$ 10k’s, while Jun is mid at US$ 9K’s on the P4TC index.

Capesize
A slow and uneventful week where the activity have slowed down. According to Fearnleys’s weekly report, there has been no big movement in freight rates, but there is generally a softer tendency. The Brazil market has gone very quiet, and fronthaul rates have dropped from around mid to low US$ 20k level on tct. It has been some problems at some loading ports, combined with dropping Iron Ore prices.

The West Australia market has been more volatile with miners fixing some spot cargoes at mid-US$ 6 pmt level, but then later dropping to very low US$ 6 pmt. There also been less activity on the period side. The general expectation is that the market might continue on a slow but stable basis for the next weeks, Fearnleys concluded in its report.


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