2-215 -Shipbrokers and consultants since 1919- ly Dry Bulk Report 22 May 3th 214 12 1 8 6 4 2 HIGHLIGHTS Capesize: Still quiet market Panamax: Continued slide in rates L&S INDEX OF DRY BULK STOCKS* Index 214 Index 215 CAPESIZE The market has not changed much over the holidays, in the first full week of the new year RTS was heard to have fixed a trip with estimated time of arrival 19-23 January at US$4.9/mt. Apart from this West Australia has remained quiet for the time being. It s the same story for East Coast Australia, the only charterer in the market is Jiangshu Steamship with an end January/early February cargo. Lack of cargo and poor rates are seeing tonnage stacking up around Singapore. South Africa is also a PANAMAX There has been a steady flow of fresh business this week but not enough to halt the continued slide in rates. In the Pacific, a Kamsarmax open spot in North China was reported fixing a Pacific round voyage at around US$525-55/day range. Among the South African business reported was a Kamsarmax from Richards Bay to Malaysia at US$5 5/day plus US$2 ballast bonus. In the Atlantic, a number of early vessels have been fixed but some faced waiting days. popular destination for ships to drop anchor. Further to Q1, the bid/offer is US$5/mt vs US$5.2/mt. Newcastle cargoes are currently marked for 1-1 February, with charterers are bidding US$6.5/mt to Zhoushan. Saldanha bay has quieted down with Anglo filling 7. 6. 5. 4. 3. 2... 4 35 3 25 2 15 5 the slots with contract of affreightment tonnage. There are rumors that Vale fixed three cargoes to operators for C3 sub US$1/mt although details remain scarce. On period, Noble was heard to have taken a vessel for 3/5 months at US$8 5/day. Capesize Timecharter Average (TCA) 5 Yr High 5 Yr Low 5 Yr Avg 215 ytd Panamax Timecharter Average (TCA) Among the business reported was a Kamsarmax from South Brazil for 1 or 2 laden legs redelivery. Skaw-Passero range at US$9 /day + US$9 ballast bonus. Some forward cargoes were fixed, including a 6 /1% hss stem from Santos to China at US$25.5/mt for May/June loading. Further North, a 73, dwt vessel was reported fixing from the US Gulf to the Mediterranean at US$1 25/day + $125, ballast bonus. 5 year High 5 year Low 5 year average 215 Ytd *Basket of stocks for L&S Index includes: Golden Ocean Group Ltd., Western Bulk ASA, Scorpio Bulkers Inc., Paragon Shipping Inc., Baltic Trading Ltd., Diana Shipping Inc., DryShips Inc., Safe Bulkers Inc., and Star Bulk Carriers Corp. 1
Supramax/Handy: Lower rates provide slow start to the year SUPRAMAX/HANDY We have seen a slow start to the year with rates lower than preholiday both in the Pacific and Atlantic basin. In the Pacific, few South East Asia coal rounds were reported, with Supramax vessels seeing US$ 9/day or less for trips back to India. North Pacific round voyages are now being reported on at pilot station basis at around US$8 /day + equivalent ballast bonus. The demand for period tonnage is apparent with willing charterers; however rates remained soft leaving owners preferring to trade in the spot market for time being. Handysize tonnage is finishing the week down on the previous, although we are still seeing reports of handysize vessels fixing in the US$7 range for south east Asia trips. The Atlantic made a poor start to the week after the holiday period. There has been a lack of cargo in the US Gulf to keep up with the growing tonnage list, putting pressure on front haul rates to 35 3 25 2 15 5 Supramax Timecharter Average (TCA) around US$15 /day and Transatlantic rates pushing sub US$1 levels. East Coast South America remained soft with front haul rates in the high US$11 /day + ballast bonus at around US$ 15. In the Black Sea area, rates continued to free-fall with lack of cargoes and front haul rates being seen at below US$1 /day. 5 year High 5 year Low 5 year average 215 ytd The Baltic Exchange Dry Index Last This Trend ly Baltic Average BCI () 3,58 3,575 Softening ly Baltic Average BPI () 6,591 6,299 Softening ly Baltic Average BSI () 9,239 8,879 Softening ly Baltic Average BHI () 7,239 7,1 Softening ly BDI Average 771 747 Softening FFA Last This Trend Calendar 15 BCI () 13,522 13,189 Softening Calendar 15 BPI () 8,3 8,178 Softening Calendar 15 BSI () 8,929 8,59 Softening Bunker Prices Last This Trend Rotterdam IFO 38 (US$/mt) 29 277 Softening Rotterdam MGO (US$/mt) 521 514 Softening Singapore IFO 38 (US$/mt) 318 295 Softening Singapore MGO (US$/mt) 557 537 Softening 2
28 26 24 22 2 18 16 14 BCI FFA Cal 16 5 TC Cal 15 5 TC Cal 15 4 TC BCI-TCA 5 4 3 2 213 214 BPI FFA 15 14 13 11 9 8 7 6 Cal 16 Cal 15 18 16 14 8 6 4 2 BPI-TCA 213 214 215 ytd BSI FFA 16 14 8 6 4 2 Cal16 Cal 15 BSI-TCA 18 16 14 8 6 213 214 215 ytd 13 11 9 8 7 6 5 4 BHI-TCA 213 214 215 ytd 3
Iron Ore Iron Ore: Rail investments to exceed by 1.1 trillion this year China has announced their approval of 3 infrastructure projects worth 7 trillion RMB for 215. This is a part a larger plan that will see 1 trillion RMB pumped into the Chinese economy within 216. Rail investments will exceed 1.1 trillion this year; as a result of the announcement the Australian dollar saw a rise. This indicates a rise in shipments of iron ore and other commodities used in construction to China. Coal Coal: Thermal coal consumption dropped by 2.4 per cent in 214 Chinas coal dependence is declining according to numbers published by the Chinese Government. Coal demand in China grew by 1 per cent annually over the decade before 211. In 212 and 213 demand decreased to between 4 and 6 per cent. According to the most recent government figures, domestic Chinese coal production declined by 2.1 per cent in the year to November compared to 213, coal import were down by 9 per cent, meaning that coal consumption dropped by roughly 2.3 per cent in 214. Grain Cargill announced a 41 per cent jump in quarterly profit this Thursday as record U.S harvests have caused grain prices to fall, giving a boost to domestic and export driven demand. 4
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