feedburner
Enter your email address:

Delivered by FeedBurner

feedburner count

Friday, October 10, 2008

Report 10th October 2008

 

 

CHARTERERS emerged from the woodwork yesterday to profit from the latest drop in dry bulk freight rates; but brokers gained some confidence from a couple of confirmed period fixtures, writes Jamie Dale.

A London broker told Lloyd’s List that handymax and supramax rates were still dropping by around 10% each day.

However, after a day of fixing that has cleared out some of the prompt vessels, the broker expects a quieter week next week, with the decline possibly slowing down.

“Although rates are dropping, there has been more fixing today. There were even two period deals, so charterers probably see levels near to a logical bottom — just a bit over operating costs,” the broker said.

The broker said that two period fixtures that were reported yesterday had given the market some positive news to mull over.

The Baltic Exchange reported that PCL had fixed the 53,990 dwt, 2007-built Madonna III for delivery Ravenna on October 15-17 for six to seven months, trading at $17,500 per day.

Meanwhile, Hanjin fixed the 52,036 dwt, 2001-built Bianco Bulker with delivery Japan in October for 11-13 months, trading at $25,500 per day. “That is a very bullish number, considering the market,” the London broker said.

The broker said that firm offers from charterers had emerged for steel or grain cargoes to the Middle East Gulf.

He added that rates for supramaxes from East Mediterranean/Black Sea to the Middle East Gulf were around $20,000 per day, while handymax daily hire rates were in the high teens.

At the start of the week, supramax rates for an East Mediterranean/Black Sea to Middle East Gulf trip were around the mid $20,000 per day mark.

But brokers at ICAP Shipping were still scratching their heads, adding that: “We continue to wonder where it will all end.”

Interest in the US Gulf has lost its allure, ICAP Shipping said in its daily report. Supramax fixtures were rumoured to be in the mid $20,000s per day for a trip to the Continent.

The London brokerage noted reports of grain cargoes piling up in US ports because buyers were no longer able to secure credit, and this situation seems unlikely to improve.

In the Pacific, Fearnleys said that iron ore cargoes were still not emerging from India. The Norwegian brokerage said in its mid-week report that: “Some of the Indian iron ore traders have stems, but they are giving ideas of $10.00 per tonne, and owners are presently not willing to agree these levels.”

ICAP Shipping said that all sectors were still “sliding”, but some more than others. There are some new spot loads in the Indian Ocean, and North Pacific round voyage rates were softening but nevertheless were still holding in the high teens, ICAP Shipping said.

“The short period market is very quiet today, which is not surprising, considering the large gap between spot and period rates,” the London brokerage added.

 

Source: Shipping Times

0 comments: