Rates rising after short-lived blip
The blip of the dry bulk markets has been relatively short-lived. Since the middle of the week, both the Capesize and Panamax markets have started to see rates increasing substantially, and China SB type ships, for example have succeeded in getting rates in the region of US$100,000 for fronthaul trips. These firmer trends have spread to the Panamax sector, with fronthaul rates back to a level close to U$50,000/day. As far as HandyMax and Handysize are concerned, both basins have also recorded slightly firmer rates.
The Panamax market has recorded much firmer conditions than during the last few weeks. On the voyage market, grain shipments from the US to Japan are now back in the very high US$60.00/ton. With a 535 rise of the BPI during the last five trading days, the Panamax market has more than stopped its fall. Mineral and grain inquiries have increased, and this has an immediate impact on freight rates. In the East, modern ships have been fixed in the region of the mid US$35,000 for Pacific r/v and in the Atlantic rates, which had fallen below US$40,000 for both Atlantic rounds and fronthaul trip, are now heading toward the US$50,000 for fronthaul trips, such as the 1999-built ’Great Loyalty’ fixed for a tct delivery Mississippi River and redelivery in the Far Eat at US$50,000, or another modern ship fixed at US$45,000 for an Atlantic r/v. Short periods, up to 7/9 months were concluded in the region of US$50,000/day.
After a small decrease, the situation for Handymax and Handysize has firmed up again in the East at the end of last week, with Pacific round voyages being fixed in the region of US$30,000 daily for the 45,000-dwt. Period rates remain firm, for instance, the ’Seafriend’, a 45,000-dwt built 1995, being fixed at US$35,000 for one year. The Atlantic is still stable despite very strong rates being fixed. For instance, a 43,500-dwt, built 1991, fixed at US$44,000 for the East coast of Mexico to the Continent, or a 38,000-dwt older type, built 1984, fixed at US$32,000 for Atlantic r/v. Fronthaul trips plus trips Continent to the Med are also very strong with rates over US$45,000 for 45,000-dwt tonnages.
Week ending: 29/02/2004
Source: Barry Rogliano Salles Shipbrokers
