More ships in the short term but more cargoes in the longer term. Rates have been dragged down this week by a list of prompt ships becoming longer than the number of stems to cover, particularly in the Cape and Panamax segments. This market correction took almost everybody by surprise but the list of tonnage was already shortening by the end of the week.
Last week, Panamax followed the Cape trends with BPI decreasing by 11 per cent. Transatlantic r/v lost around 12 per cent at US$21,431 per day. Fronthaul decreased by the same figure to US$27,506. Pacific r/v lost almost 16 per cent, valued at US$16,000. Increasing spot tonnage pushed rates down at the beginning of the week. However, as charterers went out for cheaper rates, supply thinned and BPI eventually started to recover by the end of the week. 1-2 years period business is still of interest to owners. Rates have been seen in the low US$20s.
The Handymax experienced severe drops in the Far East where China to India trips went down as low as US$16,000. Pretty much the same for the East Coast India trips back. West Coast India was even more affected with plenty of ships around and almost no stems. One can notice though a little bit more requirements out of South East Asia or Australia. This may lead to a reverse trend, let’s see. In comparison, the Atlantic is holding tight. ECSA is still firm and offers a reasonable alternative to ballasters from the Indian Ocean. The Med remains firm although the Black Sea grain season is close to its term. The Continent remains under pressure as well, with Handymax acheiving levels in the region of US$18/18,500 per day for the US Gulf trips. The US$30,000 mark was broken for trips US Gulf/Far East.
Source: Barry Rogliano, Salles, Shipbrokers, Paris