Markets still under pressure

Markets still under pressure
01 September 2004

While the iron ore & steel groups are building up their production capacities and stabilising their supplies through long term contracts, all dry bulk shipping markets remain under pressure with rate levels failing to ease despite a rather low volume of business last week.  All Capes and Panamax indexes have maintained almost the same sky-high positions as last week. In the East Handymaxes were up again despite few to report, while the Atlantic market remained flat. The only negative news of the week is the announcement of a lower than expected crop in Ukraine which will cut their export capacity and could impact the market in the Black Sea area.








At the end of last week, the Cape market was at similar levels as the week before with little   
ups and downs during the course of last week. The Panamax market lost the momentum that it had gained over last week and started to weaken again towards the end of the week. There was quite a lot of tonnage available, but owners were reluctant to drop their rates. Nevertheless, the transpacific round slipped back under US$30,000 per day, whereas fronthaul was still close to a healthy US$36,000 per day. This being said, the perception of the market still seems to be bullish in the mid/long term, which is illustrated by the fact that the period market has not responded to the recent weak rates and remains firm : newbuildings with delivery for the end of this year or early next year are still asking US$26,500 for two-year periods.









With an increase of US$277 over the week, the BHMI kept on rising up slowly but surely. Operators are still focusing on taking tonnage on tc for the next 3 to 12 months. Owners keen on short tc trips and voyages but ships can now be found on the market for mid to long period. The Pacific and the Continent continue to be at a sustained level while US Gulf and the rest of the Atlantic does not sound so active.

Source: Barry Rogliano Salles, Shipbrokers, Paris

Published under Cement News