The Hour of the Wolf for Panamaxes - Platts Report
Shipowners operating in the trans-Atlantic dry bulk market, where prices have been plumbing two-year lows on the back of acute vessel oversupply and shifting patterns in minerals demand, could be facing brighter days, according to the latest special report released by Platts, a leading global provider of energy and commodities information. The 6-page study, titled "The Hour of the Wolf for Panamaxes," takes an in-depth look at coal and grain trade in the Atlantic; reviews supply and demand and other voyage economics for ship owners; and provides an analysis of the global Panamax fleet and order book. Panamaxes are mid-sized cargo vessels capable of passing through the Panama Canal and have long been revered as the workhorses of the global dry bulk fleet. "The shrinking exports of U.S.
Dry Freight Markets Steady
Conditions on the dry cargo freight market were generally steadier for Capesizes on Wednesday, with the Baltic Cape Index posted at an unchanged 2,171, brokers said. Atlantic Panamax rates rose further and brokers said conditions were also slowly improving for owners in the East for later May positions. The South African sector remained firm. The Baltic Dry Index (BDI) gained two points to 1,611 and the Baltic Panamax Index rose 10 points to 1,522, while the Baltic Handysize Index fell three points to 1,150.
Added Panamax Cargo Inquiries Have Little Effect On Rates
While panamax cargo Inquiries from the U.S. Gulf have increased, the additional business was not expected to have much effect on freight rates, brokers said on Tuesday. Fixtures for the benchmark U.S. Gulf to Japan heavy grain route were noted in the $22 per ton region last week, but shipbrokers now suggest that a rate within $21 per ton is more likely. Evidence for this is seen in the latest U.S. Gulf to Taiwan fixture, for which charterers were reported to have paid $21 per ton of heavy grain on a fixture that specified loading between December 28 and January 8 for a 56,000-ton cargo. As the U.S. Gulf to Japan market tends to follow a $.50 premium basis shipments destined for Taiwan…
Tanker Earnings Hold Steady
Atlantic Panamax earnings were given a brief respite from the steady erosion of freight rates that has dogged the sector for the past three weeks, shipbrokers said. Brokers felt that freight rates had hit rock bottom, giving Atlantic Panamax returns one last chance to surge before the end of the year. The Baltic Exchange reported that charterer GIC paid $20.85 for an unnamed vessel on the key U.S. Gulf to Japan grain route, which was above last done levels that reached $20.50 earlier in the week for the same route, shipbrokers said. A further two fixtures were reported for the same route at higher freight rates of $21 and $21.25 per ton, confirming Panamax brokers' new-found optimism in the sector.
Atlantic Panamax Rates Firm Up in Far East
Atlantic panamax freight rates are softer in contrast to returns for panamaxes trading the Far East where rates are firmer, shipbrokers said on Tuesday. Atlantic freight rates, however, could stabilize in the days ahead, they added, suggesting that the Pacific panamax rate rise could be reaching a peak. The reason behind the Atlantic stabilization theory is that ice problems in the Mississippi may not be as bad as originally thought. Shipbrokers said that suppliers are now confident that they will be able to get cargoes down to the US Gulf on schedule. Moreover, grain purchasing activity has picked up considerably over the past few days. Shipbrokers report that China has purchased ten panamax grain cargoes recently.
Panamax Trades Firm
Freight rates for Panamaxes trading the Pacific remained firm due to a flurry of business ahead of the Lunar New year, shipbrokers said on Tuesday. In the Far East, owners of larger Panamax sizes have been negotiating firm returns recently and continue to do so. Chinese charterers told shipbrokers that business there will grind to a halt between January 24 and 30 in observance of the Lunar New Year celebrations. Brokers added that the impending holiday will start to affect the Panamax markets by the end of the week and added that demand during the following week could be limited. Meanwhile, despite a firmer tone in the Atlantic Panamax sector, many shipbrokers believe that in the near term, the sector will be at best steady.
Pacific Panamax Rates Remain Steady
Freight rates for panamaxes trading the Pacific remained firm due to a flurry of business ahead of the Lunar New year, shipbrokers said on Tuesday. In the Far East, owners of larger panamax sizes have been negotiating firm returns recently and continue to do so. Chinese charterers told shipbrokers that business there will grind to a halt between January 24 and 30 in observance of the Lunar New Year celebrations. Brokers added that the impending holiday will start to affect the panamax markets by the end of the week and added that demand during the following week could be limited. Meanwhile, despite a firmer tone in the Atlantic panamax sector…
Panamax Trades Steady
Freight rates for Panamaxes trading the Atlantic appear to be steadying, Reuters reported. The more stable tone began at the end of last week, as renewed optimism crept into the U.S. Gulf market for nearby positions. By Monday, while the Atlantic routes on the Baltic Panamax Index were lower, losses were greatly reduced. Meanwhile, Pacific Panamax freight rates remained firm, and levels in the Far East sector continued to rise. Looking ahead, with the Lunar New Year fast approaching any major change in trend is unlikely over the coming week. This quashed any high expectations for an Atlantic Panamax rally, they said. Any positive movement is forecast to be steady - at least until after the Far East holiday.
Atlantic Panamax Market Positive
Positive sentiment continued to support the Atlantic Panamax market supported, shipbrokers said on Wednesday. The Pacific sector was seen as calm, with any losses to Panamax freight rates seen as ‘marginal.’ As the Lunar New Year holiday continues in the Far East, the Atlantic sector remained generally upbeat, shipbrokers said. Freight rates for the sector continued to improve, and even the slight reductions on some Pacific panamax trades were not considered destructive to the overall market tone. "I would still say that it is an owners market rather than charterers market," one shipbroker said. Current market sentiment is in contrast to those who have voiced concern that the Atlantic would find it difficult to hold on to a gently upward trend throughout the holiday period.
Panamax Rates Likely To Ease
Asian Panamax rates for dry bulk cargo are likely to ease further this week on soft demand for mineral and grain shipment, with many spot vessels available for hire in the market. "There have been few fresh spot inquiries by charterers," said a shipping broker. Panamax rates for freights from the U.S. Gulf to Japan were indicated at $21.50-$22.00 a ton for March shipment, against $23.00 from a week ago, he said. The broker also put indication rates for April shipment around $22.50-$23.00 on hopes of a rise in vessel demand, as the South American grain export season starts in the same month. But no fixtures have been reported. In the market, one Japanese trading house was said to have fixed a Panamax vessel last week at $21.25 a ton to carry about 54,000 tons of heavy grain from the U.S.
Panamax Sector Is Soft
The Atlantic panamax sector remains soft, shipbrokers said, adding that the number of spot ships available for hire is keeping freight rates depressed especially as new business is limited. Subsequently, charterers have the upper hand, as shipowners and brokers wait for fresh orders. Despite the slow start to the week, shipbrokers are hopeful that more business will develop. Until these orders appear, however, shipowners with early tonnage are likely to find softer fixture rates inevitable, said shipbrokers. On the fixtures front, while late last week charterers booked a Panamax at $14.25 per ton of grain for a US Gulf to Egypt run, shipbrokers have since reported the booking of another Panamax at $13.90 per ton for the same route.
Atlantic Panamax Business Slows
The buoyancy detected in the Atlantic Panamax market over the past fortnight has waned, brokers said on Tuesday. Fresh orders from the U.S. Gulf were described as light and the limited opportunities in the area could prompt Panamax owners to accept softer levels, they said. Restricted barge movement along the Mississippi was also said to be contributing to the situation, while a number of Far East participants had yet to return to business after the Lunar New Year holiday. Despite the slowdown, brokers did report a number of fresh enquiries. Grain cargoes seeking Panamax transport included some heading to the Far East from the U.S. Gulf and others heading towards Egypt.
Atlantic Panamax Rates Weaken
The buoyancy detected in the Atlantic Panamax market over the past two weeks has waned, brokers said. Fresh orders from the U.S. Gulf were described as light and the limited opportunities in the area could prompt Panamax owners to accept softer levels, they said. Restricted barge movement along the Mississippi was also said to be contributing to the situation, while a number of Far East participants had yet to return to business after the Lunar New Year holiday. Despite the slowdown, brokers did report a number of fresh enquiries. Grain cargoes seeking Panamax transport included some heading to the Far East from the U.S. Gulf and others heading towards Egypt.
Panamax Rates Softer
Panamax freight rates were softer in the Atlantic and the market was relatively quiet on Wednesday, shipbrokers said while business from the South American grain export season had not managed to boost Atlantic market sentiment. While the list of fresh enquiry was growing each day, the pace of activity in the area was not as rapid as some had hoped. But shipbrokers remained optimistic that by April the season would be in full swing, and Panamax owners would be reaping the benefits. In the meantime, activity in the Atlantic Panamax market was generally dull. Owners of modern Panamaxes noted that while the accepted daily rate for an Atlantic round voyage was trading around $11,500 last week, the current level was closer to $11,000.
Lackluster U.S. Gulf to Japan Charter Is to Blame for Panamax Rates
A lower than expected U.S. Gulf to Japan voyage charter has set the tone for the panamax sector, brokers said on Monday. The 1982-built, 60,052 dwt Marienvoy was reported fixed at $21.75 per ton of heavy grains basis no combination destination ports. Loading is scheduled for the end of March to the beginning of April. While the rate no doubt also factors in the age of the panamax, brokers pointed out that the present market level for modern panamaxes of 15 years or younger for this route is around $22.35 per ton, according to the Baltic Panamax Index (BPI). While the Pacific time and voyage charters ease back, however, the fronthaul panamax market is showing signs of marginal improvement.
Panamax Rates Hold Strong
Freight rates for Panamaxes trading the Atlantic are holding strong but the Pacific market is now starting to weaken, shipbrokers said. "Prospects for May in the Atlantic are very good as South American business is expected to accelerate," said a shipbroker, adding that the strength in the Atlantic Panamax market was likely to continue into next month. South America's grain export season started later than expected this year and should therefore produce further opportunities for the Panamax sector in late spring, he said. One fixture was reported for this market on Tuesday, the 1981-built Golden Glow, 63,990 dwt, for prompt delivery Piraeus to be followed by an east coast of South America round voyage for at a daily rate of $10,250.
Panamax Rates Lose Muscle in Atlantic
The strength of panamax freight rates in the Atlantic has begun to wane, brokers said on Monday, citing a seven-point drop to 1,498 in the Baltic Panamax Index as the majority of both Atlantic and Pacific panamax routes saw returns shaved. Analysts at Clarkson Research Studies said it had become difficult to forecast further increases in Atlantic panamax freight rates because of the large spread between the Atlantic and Pacific markets. The softer undertone in the Atlantic was compounded by panamaxes ballasting from the Pacific to take advantage of the South American grain export market, brokers said. Even though Pacific panamax freight rates were still falling at a faster rate than those in the Atlantic…
Charterers: Panamax Tonnage is Few and Far Between
Atlantic freight rates are climbing as charterers are finding it hard to attract panamax tonnage on a spot basis, brokers said on Monday. The respite for owners could be short-lived, however, as some in the market believe the upturn in freight rates may not last. "For September there are still plenty of ships in the Atlantic," said one broker. In the meantime, fixtures are still slowly improving for the Atlantic panamax market, with the upturn reflected by the latest charter for the U.S. Gulf to Japan panamax benchmark route. A panamax was reported chartered at $18.50 a ton of heavy grains with loading scheduled between September 16 and $0.30 a ton higher than recent voyage charters under similar terms.
Atlantic Panamax Rates Soften, Fixtures Lay Low
Sentiment for the Atlantic panamax freight market may be softening while fixture rates stay on the low side, shipbrokers said on Tuesday. "It may be settled in the (Far) East but panamax freight in the Atlantic looks softer as there are still lower rates being reported," said one London-based broker. The majority of routes quoted on the overall Baltic Panamax Index rose by three points on Tuesday to 1,309 - but the transatlantic round voyage timecharter route, a key element of the Index, eased by $25 to a daily average of $10,798. Regarding fixtures, shipbrokers reported a buoyant prompt rate of $8,250 daily for a backhaul charter for the 1997-built, 73,427 dwt panamax Fearless, fixed for prompt Kinoura delivery followed by a trip via the north Pacific with Med redelivery.
Panamax Market Remains on Road to Recovery
The panamax market remained on track for a recovery from the recent slump, despite various public holidays, brokers said on Wednesday. Although South Korea, India and several European countries were absent from the grain market on Wednesday, brokers said that the outlook was positive. This was particularly true of the Atlantic panamax trades, where deals continued to be concluded off market at firmer levels, they said. Brokers cited Korea Line's booking of the 1984-built Ethnos for US Gulf delivery and Far Eastern redelivery, which bettered last-done levels. The fixture was done at $6,700 per day, up $400 daily from early week indications. But other London brokers played down the gains.
Panamax Rates Hold Steady
Freight rates in the Atlantic Panamax sector held steady on Wednesday amid signs that recent rises may be stalling, brokers said. "The Atlantic is holding up well, but the question is not whether the Panamax market will rally further, but when the Atlantic will come off," one said. Until then, Atlantic and Pacific Panamax rates were expected to remain steady. Signs that the market was reaching its pinnacle were heralded by the Baltic Panamax Index (BPI) on Monday, when rises in both the Atlantic and Pacific were noticeably smaller. The trend persisted on Tuesday, and by Wednesday the BPI rose just two points to 1,436. Freight rates remained high enough, however, to encourage charterers to continue with timecharter deals.
Atlantic Panamax Rates Ease, Pacific Reports Losses
Panamax freight rates in the Atlantic have eased with little business to report and a similar situation in the Pacific has led to losses on the Baltic Panamax Indec, brokers said on Monday. The Index fell 21 points on Monday to 1,504 and brokers said they expected further panamax freight rate reductions to be reflected in the Index on Tuesday. But they said the Atlantic market was volatile and may reverse its fortunes. "It would react to anything. If one or two fresh orders emerge, then panamax freight rates could rally," one broker said. "Potential freight rate movement in the Atlantic panamax market is difficult to forecast. Brokers said the 1999-built 72…
Atlantic Panamax Rates Take A Step Back
Sentiment on the Atlantic panamax market turned weaker albeit with unchanged freight rates, while most Pacific rates now appeared to be flattening out, shipbrokers said on Thursday. Average Pacific prices as reported on the Baltic Panamax Index climbed only marginally, while Atlantic routes were shaved back one point to 1,435. Shipbrokers said the main panamax activity remained in the Far East with rates for backhaul charter still rising. With the daily rate for fronthaul trips placed around $11,400 and, by contrast, backhaul charters attracting around $9,000, returns on Pacific routes were likely to stay below those obtained for the Atlantic in the short term.