All dry bulk markets have continued to go up during last week especially for the Capesize market which increased heavily and, more particularly, at the end of the week. The most bullish players who predicted new record freight rates are getting closer to their predictions.
The Panamax market is rising more quietly but all main routes are offering a steady flow of business. The Handysize/max market was more balanced last week but rates remained firm. In the news, prospects of a sustainable growth of Chinese demand for iron ore arise from everywhere and especially from Australia where miners are intensively signing export contracts to supply the fast expanding Chinese steel industry. Situation is almost the same with coal as record production levels and new mining projects are announced every week.
The Panamax market was very active, especially in the Pacific. Trips to the Pacific are worth in excess of US$40,000 now, and even Pacific rounds are not far off this mark. The Atlantic has still a lot of tonnage available, but demand was nevertheless strong enough to keep rates northbound. Apart from the buoyant spot market, medium to long term time-charter was in high demand.
For 3-5 months a LME can hope to earn close to US$40,000, and charterers have to go longer, i.e. more than one year, in order to find a real discount compared to spot rates. This being said, the one year period rate for this kind of ship has been at very bullish US$35,000 levels.
The Handysize / Handymax market continued to rise steadily with an increase of over US$800 for last week for the BHMI. All routes have significantly gone up especially the trip US Gulf to Continent/Med and the Continent/Far East route with respective increases of US$2,174 and US$1,840. Modern Handymax ine ECSA are
getting in the low US$40,000 for TCT trips to the Pacific basin. The Pacific round still very firm and flirting closer and closer with the US$30,000 level for modern Handymax grabbers. Modern units between 25,000 dwt and 30,000 dwt positioned in Far East/SE Asia getting low to mid twenties for short periods.
Source: Barry Rogliano Salles, Shipbrokers, Paris