Friday, January 09, 2009
It was a better week overall for the Atlantic Panamax sector as fresh inquiry
for grain cargoes from ECSA to China helped lift the market right through to the
weekend. Owners were also demanding a premium for taking their vessels to a
region where current rates are at all-time lows. However, charterers have begun
pointing out that with Handy rates dropping, and liftings on supramaxes being
similar enough, demand for panamax tonnage is likely to weaken if owners press
too hard. That said, there was fresh inquiry in the market today for further
grain cargoes. In the Pacific the market moved into the weekend with no change.
Rates are still under severe pressure and Pacific rounds will not see much more
than $2000 daily, if that. The Baltic Panamax index edged up 2 today to 534.
In the Atlantic, Uniwell has reportedly fixed on subjects the 1996-built 75,339
dwt Pride of Indore with January 14-18 delivery Cape Passero for a trip via
Orinoco and redelivery China at $9,000 daily.
The 1994-built 70,089 dwt Powerful was said fixed on subjects to Daewoo with
spot delivery Cape Passero for a trip with redelivery in the East at $7,750
An undisclosed charterer was said to have taken the 2005-built 74,759 dwt Clare
with January 07 delivery retro Skaw for a trans-Atlantic round of about 40 days
trading, with redelivery Skaw-Cape Passero at $5,500 daily.
The 2001-built 74,710 dwt Primrose has fixed to Swiss Marine with January 27-31
delivery Richards Bay for a trip with redelivery Skaw-Cape Passero at $2,125
daily plus a ballast bonus of $150,000.
It emerged that the 1984-built 63,900 dwt Captain George L recently fixed to
Pacific Bulk with January 06 delivery retro-Cork for a trip via the St. Lawrence
and redelivery China at $7,250 daily.
Cetragpa agreed $8.75 for the 2001-built Heinrich Oldendorff with January 24-28
loading 60,000 tons 10% coal from IMT to Jorf Lasfar.
The 2007-built GMI-relet Iron Manolis went to CCC with prompt loading 70,000
tons 10% coal from Murmansk to ARA at $5.75.
Noble was linked with a Cosco TBN for February 01-10 loading 55,000 tons 10% hss
from the US Gulf to north China at $23.50.
From the Pacific, the 2008-built 76,553 dwt Star of Sawara has gone to BHP
Billiton with January 09-11 delivery Hay Point for a trip with redelivery
Singapore-Japan range at $2,250 daily plus a $110,000 ballast bonus.
Armada reportedly fixed on subjects the 2008-built 83,610 dwt Star of Emirates
with January 17 delivery Jintang for a trip via Indonesia and redelivery India
at $2,200 daily.
Despite earlier reports of fixing to Seafreigt PLC at $6,000 daily for a
RAG/Feast trip via Iran, it emerged that the 2001-built 75,921 dwt Yomoshio has
gone to an unnamed charterer with prompt delivery aps Bandar Abbas for a trip
with redelivery Skaw-Cape Passero at $2,125 daily plus a ballast bonus of
The 2001-built 74,000 dwt Goldbeam Trader has fixed to Oldendorff with January
08-12 delivery Jintang for a trip via east coast Australia and redelivery west
coast India at just $1,700 daily.
Pan World Logistics took the 1994-built Navios Gemini S with January 14-18
loading 60,000 tons 10% ore from Geraldton to Qingdao at $8.10.
There was a tad more optimism heard in the market today as an influx of fresh
inquiry in the last two weeks has helped mop up some of the excess tonnage in
the Atlantic. Voyage business in the Atlantic has been reported done in the
mid-$12.00 range for ore cargoes ECSA/Far East. There is talk that this has
already been surpassed, with rates of $14.00-$14.50 being talked for early
February loadings. In the Pacific, fresh inquiry from Australia, along with new
demand for longer period fixtures helped give the market a boost. However, not
all sources were impressed. Despite gains to the BCI and firming rates the
long-term picture for the Capesize sector was described as
flat-to-somewhat-improved over the next two years, by U.S investment bank
Oppenheimer & Co.. Lloyds List reported today that in their "Shipping Outlook
2009", the bank predicted that 2009 will be a year of bottoming rates for the
capesize sector. The bank expects average capesize rates in 2009 to be about
$24,000 daily against breakeven costs of about $11,000-$13,000 daily. In 2010
rates will likely average about $29,000 daily. Oppenheimer and Co. were quoted
as saying that forthcoming newbuilding deliveries and renegotiated rates on
long-term charters will limit any upside potential in the market. Although many
sources look to renewed Chinese demand for ore and coal cargoes this year and in
the future to boost rates, the bank said their own predictive models show that
even a resurgence of demand larger than 10% will not be able to outweigh
newbuildings entering the market. Although recent months have seen a larger
number of ships sent for scrapping, Oppenheimer & Co. indicated that if rates
remain at current low levels, it will still take 6-18 months before sufficient
vessels are scrapped to balance the market. The bank also warned that there
still exists the very real possibility of many more bankruptcies among drybulk
charterers at predicted rate levels. The Baltic Capesize index jumped
appreciably today, gaining 164 to 1728.
Out of the Atlantic, the 1996-built 171,978 dwt Swiss Marine-relet Cape Awoba
went to an unnamed charterer with January 14-16 delivery Sines for a
trans-Atlantic round with redelivery Skaw-Cape Passero at $14,000 daily.
Cargill reportedly took the 1996-built 161,183 dwt Iron Queen with January 18-20
delivery Antwerp for a trip via Nouadhibou or Brazil to Singapore-Japan range at
Cometals was said to be the charterer of the 2005-built Shagang-relet Anangel
Fortune with January 10-19 loading 160,000 tons 10% ore from Itaquai to Xingang
or Caofeidian at $12.50.
From the Pacific, in period business, the newbuilding 180,000 dwt Lykiardopulo
reportedly fixed to Cargill with April-June 2009 delivery ex-yard Daewoo for
2-years trading and redelivery worldwide at about $23,000 daily.
Voyage business heard that the 1997-built Su-Oh has gone to BHP Billiton with
February 01-10 loading 160,000 tons 10% ore from Port Hedland to Qingdao at
Rio Tinto Shipping fixed the 2006-built Kline-relet F.D. Luigi D'Amato with
January 15-20 loading 160,000 tons 10% ore from Dampier to Qingdao at $6.10.
The same charterer has taken a TBN with January loading 160,000 tons 10% ore
from Dampier to Qingdao at $6.10.
It emerged that Rio Tinto also recently fixed the 1995-built Martzoukos A with
January 20-30 loading 160,000 tons 10% ore from Dampier to Qingdao at $6.00.
KEPCO reportedly fixed an HMM TBN with January 21-30 loading 120,000 tons 10%
coal from Gladstone to Youngheung at $5.83.
Atlantic Handy business closed the week with no improvement in sight. The
overabundance of tonnage in the market has swamped all fresh inquiry, leaving
rates moving slightly on both sides of last dones. Pacific business remained
the stronger of the two basins with rates holding steady into the weekend. The
Baltic Supramax index moved up 5 to 394, while the Handysize index was down 1 at
From the Atlantic, Sinochart paid a respectable (in this market) $10,000 daily
for the 2007-built 57,982 dwt Genco Hunter with January 20-25 delivery in the US
Gulf for a trip with redelivery Singapore-Japan range at $10,000 daily.
The 1996-built 45,178 dwt Nan Hai has fixed to an unnamed charterer with
mid-January delivery south Brazil for a trip with redelivery Singapore-Japan
range at $8,500 daily.
Louis Dreyfus proved to be the charterer of the 2008-built 54,274 dwt Tawa Arrow
with spot delivery Tema for a trip via east coast South America and redelivery
India-Japan range at about $7,000 daily.
Armada was the charterer of the 1998-built 46,672 dwt Lihai with January 14-18
delivery in the US Gulf for a trip with redelivery east coast Mexico at $7,000
Elkem was linked on subjects with the 2008-built 42,704 dwt Hemus with spot
delivery Dublin for a trip via St. Petersburg and redelivery in the Far East at
Pacific business heard that the 2006-built 53,000 dwt Arya Payk fixed to Seawin
with January 09-15 delivery Chennai for a trip with redelivery China at $7,500
An undisclosed charterer was said to have taken the 1998-built 46,211 dwt
Brother Glory with January 23-30 delivery Buenaventura for a trip via Chile with
redelivery on the Continent at $7,500 daily.
The 1984-built 42,239 dwt Planica reportedly went to a Far Eastern charterer
with prompt delivery Bandar Abbas for a trip via the Persian Gulf and redelivery
in the East at $5,000 daily.
Allied was linked with the 1984-built 40,940 dwt Thor Alliance with spot
delivery Singapore for a trip via south-east Asia and redelivery West Africa at
about $5,000 daily.
Copenship has the 1993-built 43,620 dwt Tektoneos with spot delivery in the
lower Baltic for a trip with redelivery in the eastern Mediterranean at $4,500
The 1994-built 43,598 dwt Fany has gone to Seawin with January 12-14 delivery
Bandar Imam Khomeini for a trip via India with redelivery China at $3,700 daily.