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Saturday, 09 January 10
THE FAR EAST MARKET STARTED TO STABILIZE - FEARNLEYS


Handy
The FEAST market started to stabilize after the quite holidays and we saw growing activity fed by Chinese coal and iron ore imports and India´s thirst for Indonesian coal.

For Indonesia / India coal trips Supras were fixed in the low 20´s. The period  market  picked  up  activity,  Supras  were  fixed  for  low/mid  20´s for short period. India, the market is still firm for iron ore cargoes from WCI, Supras were trading in the mid/high 30´s for trips to China. In Atlantic market the rates have been active and firm in all areas. Rising demand for vessels and paper sharpening gave boost to the rates.

Owners were quite   optimistic holding back the vessels hoping for even better rates.

Panamax
A very firm start of the first week in the New Year, after a soft end in 2009.

The BPI showing a sharp rise after the holidays. Atlantic RV seen high mid US$ 30,000 and trip out about US$ 45,000. There is a good demand for tonnage in the Atlantic basin and the market is pushing further as owners are holding back ships. In the Pacific the market also looks very firm and rates for a RV at US$ 30,000 for LME`s.

Backhaul still emaining at 17-18k levels, and some charterers are taking vessels from Pacific and ballast to USG at high 20 levels. LME`s fixed 31k US$ for 5-7 months, 1 yr at US$ 27000 in the Atlantic and US$ 24,000 in the Pacific.

Capesize
2010 starts off at a positive note, although signs of correction have become apparent midweek. Fronthaul levels rose significantly to hit US$ 33 pmt Tubarao / Qingdao for February loading before again sliding downwards, whilst the West Australia / Qingdao trade put on some US$ 2.50 pmt to reach US$ 13.50 pmt before dipping into the mid US$ 12´s pmt.

Paper trades, however, is taking a blow and does little to support spot, neither do a handful of ballasters apt to put  pressure on Brazil / China levels. Index  tonnage presently   trades at an average of   US$   40,500 / day, with 3-5 months period done on 172,000-tonner built 2001 at US$ 38,000 / day basis delivery China prompt.
Source: FEARNRESEARCH



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