Panamax Freight Rates Continue to Soften

Freight rates for forward positions in the panamax sector continue to remain soft despite higher levels attracted by the prompt and spot markets, shipbrokers said on Tuesday.

While charterers have to pay a premium for panamaxes available for spot and prompt loading dates due to a squeeze on the supply of ships, the high levels of panamax tonnage available for September loading started to put pressure on owners and force them to accept rate discounts.

The negative vibes in the forward physical panamax market also affected the panamax over-the-counter markets, shipbrokers also said.

They cited among the best August fixtures the charter, by grain house Cargill, of the newly built Danae, of 75,106 dwt.

The panamax is booked for end-August Recalada delivery followed by a trip to the Skaw-Passero range, with options on the Far East, at a daily rate of $8,500 , plus a $180,000 ballast bonus. Meanwhile, in the short-term chartering sector the 2000 built panamaxes attracted daily rates ranging from $8,100 to $8,250, for four- to six month-charters.

Market talk suggested charterer Bottiglieri had chartered the 74,333 dwt Navios Magellan and the 72,917 dwt Monte Pelmo.

Early September charters included South Korean charterers for the 1989-built Nemea, of 68,870 dwt, for early September U.S. Gulf delivery followed by a trip to the Far East at a daily rate of $8,400 daily plus a $170,000 ballast bonus.

In the Pacific, Chinese charterers Cosco booked the 1990 built 69,458 dwt Oceanic Esprit for spot Xingang delivery, followed by a trip via Western Australia. Redelivery is scheduled as China at a daily rate of $5,000 daily.