Easter makes for quiet markets

With most of Europe away for the Easter holidays, the freight markets were in for a quiet week. The Baltic Dry Index gained 18 points WoW, reaching 944 on 11 April and in the run-up to 17 April, it climbed to its highest level since January, rising to 989. "While we continue to expect dry bulk rate volatility, we continue to expect the oversupply of tonnage to keep rates in check through the majority of 2012," Wells Fargo senior analyst Michael Webber said in a note.   

The improved demand for Brazil loaders has seen some uptrend in the Capesize market while TCT Cont/Far East rates advanced from US$24,000/day to US$25,500/day. Richards Bay/Rotterdam contracts gained US$0.10, registering at US$8.60/t, according to shipbrokers Fearnleys. However, in the week ended 18 April capesize rates softened somewhat as Continent ports stock plenty of coal, subduing  transatlantic trades.

The panamax market recorded an increase in transatlantic round trip rates from US$7750/day to US$8350/day between 4 and 11 April. TCT Far East RVs followed a similar trend with daily rates rising from US$7750 to US$8250, reported Fearnleys. On the Baltic Exchange, the panamax index gained 3.62% the following week, pushing up the overall index. Transatlantic RV rates continued to firm to US$10,500/day and TCT Far East RVs followed suit, rising to US$10,200/day by 18 April.

In the handysize segment round trip rates softened in the week ended 11 April, both in the Atlantic and Pacific Basins. Atlantic routes saw daily rates fall from US$10,200 to US$9950 while their Pacific counterparts experienced a larger cut, from US$10,000 to US$9250. TCT Cont/Far East contracts slipped from US$14,200/day to US$13,950/day. One week later, Reuters reported an advance in average daily earnings to US$8272 on 17 April as the handysize market firmed. Atlantic RV rates increased to US$10,300/day while in the Pacific, RV rates climbed to US$10,200/day.