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Friday, 13 October 17
THE SHORT-TERM OUTLOOK FOR THE PANAMAX MARKET REMAIN POSITIVE - FEARNLEYS
PanamaxSupramax
The market has picked up strongly since last week with the Chinese holidays. In the Pacific rates are increasing with some strong number seen especially for the Indo/China coal rounds which by mid-week are paying owners around $15k delivery Singapore and Ultras around mid-high $16k bss Indo delivery, says Fearnleys.

The Oslo based broker further noted that, In N. China vessels are achieving over $10k on dop bss for nickel ore runs via Philippines back to China. The Atlantic has enjoyed more activity and rates pushing as well although a bit slow start. Seeing more activity an fixtures in USG with vessels getting fixed in the very high teens for trips to Emed while front hauls paying around owners $23k. From ECSA vessels are achieving around $16k for trips to Cont/Med.

Panamax
Commenting on Panamax the broker Fearnleys says, a relatively active week for the Panamax market with increasing rates in both hemispheres. The Atlantic market keeps its momentum with the north Atlantic being especially firm.

“We also see a steady pace of cargoes out of USEC, US Gulf and ECSA pushing TA rates at around 12k’s” says Fearnleys’s research team.

Fronthaul’s are being fixed in the $19 to 21k’s depending on duration. The sentiment in Asia also remain very positive with transpacific RVs being fixed at around $13k’s and the expectations going forward is still positive. The short-term outlook for the Panamax market remain positive all in all and period interest is increasing. As for FFA’s; Nov is priced at high $12k’s, while Q4 is now priced at mid $12k’s on the P4TC index.

Capesize
Continued positive spot sentiment for the big ships and average earnings up 8 pct to come in at $20k, mainly due to a mix of weather delays in important discharging areas and healthy prompt iron ore flows. According to Fearnleys, W Aust/China activity steady in particular, Brazil/Far East volumes modest but fronthaul levels supported by Atlantic coal exports and limited regional fresh tonnage supply. Limited period fixing as FFA levels not justifying long period, being far from matching physical 2018-expectations - notable exceptions being 179000 dwt/built 2016 delivering China prompt to mining major for about 12 months at $17k, whilst for shorter duration mediocre 169000 dwt/built 2008 done for 4-6 months at $16600 to operators.


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