With Panamaxes having been very much in the centre of attention during the
past week, the market as a whole seems to have taken on a stroll along the
beach. Without direction or a real pace, the market is awaiting a
post-holiday revival. Panamax operations in the Pacific though seem to be
more impulsive than those on the Atlantic basin, suggesting increasing
market stability on the latter. This is more or less confirmed by the
Capesizes, who are still being strongly triggered by the insatiable Chinese
appetite for iron ore. Could the end of the holiday period change this?
The Panamax market saw a continued upward trend in all basins, with all
routes still taking the same direction. Most routes gained about US$1,000
per day, and especially the long and medium term period market showed strong
figures, with LMEs obtaining US$35,000 for 4-8 months periods. While at the
moment it seems that the only way for the Panamax market is up, and while
this could be in anticipation of the after summer business, let’s not
forget that the Panamax market has followed a zigzag line for the last
month. We will see in the next few weeks if this time we are looking at a
real trend….or another ’looking for direction’ bump. The BHMI kept on rising
up confirming a significant increase of over 700 over the week.
Owners are taking advantage of the Handy market firming up and playing the
spot for short voyages when they can. In the meantime, operators are trying
to cover themselves and to book tonnage for 3-5 months up to 12 months TCs.
The Pacific has shown the highest increase with modern built 50,000 dwt now
getting close to US$30,000 for a Japan/ Australia round.
Source: Barry Rogliano Salles, Shipbrokers, Paris