TNT Dry Freight Review - 16 December 2008

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PANAMAX
=======
Panamax business continues to suffer from limited inquiry and
overwhelming availability of tonnage. From the Atlantic, charterers
were said to be mostly interested in period tonnage to the East due to
the rates premium and there was talk of about 12 months trading seeing
a rate in the upper-$12,000's daily - but details have yet to emerge.
There was very little fresh business on offer and rates are still
struggling.  A trip out to the Far East fixed an LME at a low $8,000
daily.  A north Atlantic round wasa reported done at $7,500 daily.
Out of the Pacific, rates have yet to bottom, and numbers were
described as "incredibly low".  The abundant available tonnage
continues to smother any possibility of a turnaround and it would take
a sustained surge of fresh cargoes to absorb them - something which
appears very unlikely in current market conditions. Sources reported
that iron ore cargoes from India to China remain the mainstay of the
market.  There was also said to be some coal business from China to
South Korea and Taiwan and a bit of grain business in the north
Pacific.  Pacific rounds have fallen to around $2,000 daily, a NoPac
to around $2,600 daily, while backhaul business has seen $1,500 daily.
The Baltic Panamax index was up 30 to 480 today.
In the Atlantic, K2 of Norway has reportedly taken the 2003-built
75,132 dwt Navios Cielo with December 17-19 delivery Cape Passero for
a trip via the Black Sea and Israel, with redelivery Cape Passero at a
surprising $7,500 daily.
Louis Dreyfus took the 1995-built 75,132 dwt City of Dubrovnik with
January 10-15 delivery Recalada for a trip with redelivery Skaw-Cape
Passero at $3,500 daily plus a ballast bonus of $130,000.
>From the Pacific, the 2005-built 76,250 dwt Nord Orion went to an
undisclosed charterer for a steady $8,000 daily with December 20-30
delivery Paradip for a trip with redelivery in the East.
The 1993-built 71,761 dwt GO Public went to an unnamed charterer with
prompt delivery dop Rozi for a trip via west coast India and
redelivery in the US Gulf, optional redelivery Skaw-Cape Passero at
$6,000 daily.
ETA Dubai was said to be the charterer of the 2008-built 83,690 dwt
Medi Sentosa with December 17-20 delivery Kaohsiung for a trip via
NoPac and redelivery Jebel Ali at $4,000 daily.
The 1999-built 73,600 dwt Genco Leader has reportedly fixed on
subjects to British Marine with December 16-20 delivery Qingdao for a
trip via east coast Australia and redelivery east coast India at about
$3,250 daily.
The 1987-built 68,158 dwt Laconia was said fixed on subjects to
Solebay with prompt delivery Taiwan for a trip via India and
redelivery in the East at $3,000 daily.
North China Shipping was linked with the 1994-built 70,000 dwt Wadi
Sudr with December 21-24 delivery Taiwan for a trip via India and
redelivery China at $2,300 daily.
In period business, Glencore paid $11,000 daily for spot delivery of
the 2006-built 75,776 dwt Baltia with delivery Shanghai for 1-year's
trading and redelivery worldwide.
CAPESIZE
========
Owners in the Capesize sector are busy "making hay while the sun
shines", as one source put it.  The current run of better rates and
more activity continued, but many questioned how much longer it could
last, with holidays in the offing next week.  Atlantic business was
said to be doing better numbers, but evidence was lacking.  In the
Pacific, period business of about 1-year was heard done at about
$21,500 daily.  The Baltic Capesize index gained 60 to 1514 today.
In the Atlantic, Sinochart took a TBN with December 20-January 05
loading 160,000 tons 10% ore from Itaquai to Qingdao at $8.80.
BHP Billiton was linked with the 2005-built Ocean Confidence for
December 25-January 5 loading 160,000 tons 10% ore from Port Hedland
to Qingdao at $6.05.
Rio Tinto Shipping has the 1997-built Rubin Ace with December
28-January 6 loading 150,000 tons 10% ore from Dampier to Qingdao at
$5.70.
The charterer also fixed the 2000-built Alpha Era yesterday, with
December 26-31 loading 160,000 tons 10% ore from Dampier to Qingdao at
$5.80.
The 1996-built C. Royal has also fixed to the charterer with December
24-January 2 loading 160,000 tons 10% ore from Dampier to Qingdao at
$5.60.
Period business heard that Morgan Stanley has fixed on subjects the
2004-built 171,681 dwt NCSC-relet Pioneer with January 2009 delivery
in the Pacific for 1-year's trading and redelivery worldwide at
$21,500 daily.
HANDY/SUPRAMAX
==============
It was a livelier market for the Handy sector if you only look at the
reports of concluded business which surfaced today. However, rates for
the most part were still uninspired in the Atlantic and there was no
evidence of any rapid improvement in the offing.  Trans-Atlantic
business saw a supermax fix for spot business at $11,000 daily, while
another fixed a trip out from the Baltic at just $6,000 daily.  In the
Pacific, there was a glimmer of hope with the fixing of the Channel
Ranger, which did Australia/Far East business at a stronger $10,000
daily.  Spot tonnage fixed short period for $6,000 daily.  The Baltic
Supramax index lost 5 to 481, while the Handysize index was off 4 at
300.
Out of the Atlantic, Cargill reportedly fixed the 2005-built 55,257
dwt Dalior with spot delivery Cabadelo for a trip via Santos and
redelivery in the Red Sea at $11,000 daily.
The 2005-built 53,608 dwt Novo Mesto has gone to Oldendorff with spot
delivery aps Baltic for a trip with redelivery India-Japan range at
$6,000 daily.
In voyage business, Louis Dreyfus was said to have taken the
1985-built 37,596 dwt Pontomedron with December 18-24 loading 30,000
tons 10% bulk sugar from Santos to east coast India at about $22.00.
Noble was the charterer of the 1997-built May Oldendorff with December
18-22 loading 36,000 tons 10% coal from Altamira to Kashima at $20.00.
Pacific business included reports that Trafigura has taken the
1995-built 43,108 dwt Channel Ranger with January 8-10 delivery
Australia for a trip with redelivery Singapore-Japan range at $10,000
daily.
The 2006-built 54,881 dwt Sparna has reportedly fixed on subjects with
EBC for December 26-28 delivery Chiba for a trip via NoPac and
redelivery east coast India/Japan range at $4,750 daily.
In period business, the 1999-built 48,900 dwt Ken Unity went to
PacBasin with spot delivery Chiwan for 5-7 months trading and
redelivery worldwide at $6,000 daily.