Shipping markets on a roll

Shipping markets on a roll
Published: 18 May 2007

Another week of strong increases and with a rise of 341 points last week, the BPI reached a new record high of 6,283 points (the last record established was on the 1st of December 2004 with 6,110 pts). The Panamax market is still sustained by interest for period in both Atlantic and Pacific basins. Pacific round traded last week in the low/mid 50’s.

LME’s for 5/7 months delivered in Pacific were trading around US$52,000/day. In the Atlantic, the market is similarly driven by period fixture. LMEs were fixed around US$55,000/d for 4 to 6 months when Atlantic round voyages were reaching higher numbers. Panamax delivered in the Pacific were priced at about USDry Bulk Carriers Orderbook $48,000/day for 1 year period and about US$40,000/day for two years last week. An interesting forward delivery (dely WW Dec. 07 / Mar. 08) of a 71,700dwt lady built 1990 was reported fixed at US$23,450/day for 5 years, and relet for US$24,450/day for 5 years on the same day.

With all routes having increased by around US$1,500/2,000 per day during the week, Handies freight levels reached new records. In the Atlantic, Supramax obtain in excess of US$65,000 daily for a trip USG/Continent and modern Handysize 32,000 dwt can fix US$42000 for same route.

Average t/c rates in Pacific are now in the region of US$41/42,000 for Supramax and US$26,000 for Handysize 28,000 dwt with a strong confidence in the future for some operators for instance a 33,000 dwt has been reported at a healthy US$25,500 for 2 years and Supramax obtain approximatively same level for 1 year than for spot t/c rates in the Pacific.

source: Barry Rogliano Salles, Shipbrokers, Paris