Holidays make for cool start to the past week

By ICR Newsroom

31 May 2012

Rates in the Atlantic generally fell in the larger vessel sizes but Handysize charters firmed during the past fortnight. In the Pacific, a similar trend was noted although the Handysize segment delivered a mixed performance. Holidays, reduced activity in China and new vessels leaving shipyards all combined to subdue freight rates.

The Baltic Dry Index slipped again between 16 and 30 May, from 1137 to 950, registering a 16% drop.

Handysize rates rose 15.6% in the Atlantic with RV prices increasing from US$13,250/day to US$15,320/day while over in the Pacific basin, RV rates fell by nearly a third from US$9250 to US$6230/day over the same period due to lack of demand.

Holidays in Europe and the US made for a very slow start to the past week and demand for Panamax remained subdued. The segment continued to record increasingly lower rates with transatlantic RV trips at US$8300/day and TCT Far East RV recording a very low US$5600/day.

The combination of China’s lower raw material imports and increased new tonnage rolling of the shipyards did not make for a rate advance in the Capesize market, according to shipbrokers Fearnleys. Capesize TCT Cont/Far East rates fell from US$28,200/day to US$22,000. Cargoes between Richards Bay, South Africa, and Rotterdam, The Netherlands, were also shipped cheaper as tonnage rates fell from US$8.30 to US$7.60/t.