Strong increase from China and Japan give markets boost

Strong increase from China and Japan give markets boost
05 February 2004

After a slow start to the week, a strong increase of mineral inquiries from Chinese and Japanese charterers, has reversed the downward trend, which was the consequence of the end of the Chinese New Year. Now, the market is back in the up direction, and to show the change in trend, let’s mention that within the last two days of the week, the BCI rose by 185 points at 7682, and the BPI achieved an even firmer performance with a 303 point rise. The HandyMax and Handysize market showed some brisk performance with an Atlantic market particularly buoyant, and a Pacific one slightly up.

Freight graph

The Panamax market got a further boost this week. In the Atlantic, both transatlantic r/v and fronthaul trips reached new records, with fronthaul rates for modern vessels in the region of US$55,000/day, while Atlantic r/v were generally done in the region of US47/48,000/day. In the East, Pacific r/v are one step behind, in the region of the low US$40,000. As usual, the Middle East /Indian Ocean area can offer very firm rates close to US$50,000 for trips to India or China. The period market has been very active, with most modern vessels fixed for 12-18 months in the mid-US$30,000/day. Among firmer rates, a 2002-built ship was fixed at US$45,000 per for 10-11 months delivery Cape Passero, while another recent ship was taken for two years at US$32,000/day.The coal market ex South Africa was slightly up, and these firmer conditions are also being seen in the HandyMax and Handysize markets.

The Atlantic HandyMax market continues its steady rise with fronthaul rates now close to US$35,000, and Atlantic r/v some US$2000 below that level. Among rocket rates, a 34,000-dwt newbuilding was reported fixed at US$42,500 for a voyage delivery in the US Gulf and redelivery in East Med. In the East, the market is believed to be steady with large vessels fixed in the mid US$20,000 for Pacific r/v. On the short period market a 20-year-old 34,000-dwt ship was fixed at US$30,000 for 4-5 month trading.

Week ending: 08/02/2004

Published under Cement News