Quiet handysize and panamax markets, capesize promising

Quiet handysize and panamax markets, capesize promising
05 August 2013

Traditionally a more quiet time of the year, the freight market does not delivery any big surprises. Handysize and panamax markets see available shipping capacity outnumber actual cargoes. In the capesize market, charters are improving. The Baltic Dry Index (BDI) slipped in July but still enjoys a much better level than last year.

In terms of handysize shipments, the Pacific market is still fairly quiet. Only a few coal shipments were noted as the Ramadan period continues. Pacific RV rates remain steady at SU$7950 but their Atlantic counterparts slipped from US$11,820 to US$11,525 in the past week.

Panamax charters faced their biggest decline in the Atlantic as a lack of new orders saw tonnage available outpace cargoes. Transatlantic RV rates fell from US$11.750 to US$10,200 and TCT Far East RV rates showed a similar trend, from US$7150 to US$6300.

The flow of cargoes in the capesize segment was reported as relatively stable and the Pacific is looking promising, according to shipbroker Fearnley’s. While west Australian shippers have been active and pushing up freight rates, the strike in Columbia has seen Atlantic rates under pressure. Rates from Richards Bay, South Africa to Rotterdam, The Netherlands mildly appreciated over the week from US$8.35/t to US$8.40/t. 

The BDI noted a 55 point WoW drop from 1117 to 1062 on 31 July. On 1 August 2013 a slight rise to 1066 was reported, a significant MoM fall from July when the BDI peaked at 1179, but considerably better than its 2012 level of 878.

Published under Cement News