Good news for TBSI as all 40 of its vessels are the Handymax size. March should be an exceptionally good month.
Handymax rates to rocket in March as cargoes build
Jamie Dale - Friday 22 February 2008
ATLANTIC handymax freight rates are likely to "really rocket" for March loading dates as the prompt ships are almost cleared out, writes Jamie Dale.
The Atlantic market saw healthy volumes of ships available for February cargoes in the last two weeks but many are now employed, opening the door to a firmer looking March.
"The prompt ships are looking softer, I think that you will see a clear out of these at lower levels," a London broker told Lloyd's List.
"Then I think you will see March ships looking like they will pick up some bigger levels."
The broker added that availability of cargoes to soak up the vessels will not be a problem.
"There are plenty of cargoes for US Gulf to Japan, plus there is looking likea real build-up of scrap on the US east coast to Turkey for mid-March," the broker said.
"In east coast South America and Brazil there is plenty of iron ore, pig iron and grain, so I think you will see [levels for] the March dates really rocket."
The broker noted that the last "biggie" fixed in east coast South America went for $56,500 per day plus $800,000 ballast bonus for a trip toward the Pacific.
However, the broker added that owners in east coast South America are already claiming to see interest at $70,000 per day plus $1m ballast bonus.
In west Africa rates for a Baltic Exchange tess 52 index type vessel are around the $61,000 per day mark.
"I think you will have to watch thismarket next week, this is when you will really see it go because the February ships in west Africa have almost cleared out with just a few knocking about on the Continent, but once they have gone we will see rates go up," said the London broker.
"Do not expect too much action on the indices this week, but watch next week and March dates. Be prepared!"
In the Pacific Basin this week many owners appear to have got carried away with the rapidly-rising short period rates and "have priced themselves out of the market", according to ICAP Hyde.
"Index type tonnage rating in the mid-low $60,000s has scared off charterers who are quite happy to sit back and watch for the time being unless they have spot backhaul requirements to cover with short period tonnage," added the Londonbrokerage in its daily report.
The report noted that some Far Eastern owners have started to ease their levels slightly after realising that their "over zealous" rates are off the mark in view of the reduced period sentiment.
ICAP Hyde noted that vessels fixed for Pacific round voyages are able to achieve above $50,000 per day, for both shorter nickel ore trips and the longer rounds out of the North Pacific.
The Indian coasts remain firm with a 45,000 dwt vessel open on the west coast reported to be fixing on subjects for a trip to the east in the mid $50,000s.
Handymax rates to rocket in March as cargoes build
Jamie Dale - Friday 22 February 2008
ATLANTIC handymax freight rates are likely to "really rocket" for March loading dates as the prompt ships are almost cleared out, writes Jamie Dale.
The Atlantic market saw healthy volumes of ships available for February cargoes in the last two weeks but many are now employed, opening the door to a firmer looking March.
"The prompt ships are looking softer, I think that you will see a clear out of these at lower levels," a London broker told Lloyd's List.
"Then I think you will see March ships looking like they will pick up some bigger levels."
The broker added that availability of cargoes to soak up the vessels will not be a problem.
"There are plenty of cargoes for US Gulf to Japan, plus there is looking likea real build-up of scrap on the US east coast to Turkey for mid-March," the broker said.
"In east coast South America and Brazil there is plenty of iron ore, pig iron and grain, so I think you will see [levels for] the March dates really rocket."
The broker noted that the last "biggie" fixed in east coast South America went for $56,500 per day plus $800,000 ballast bonus for a trip toward the Pacific.
However, the broker added that owners in east coast South America are already claiming to see interest at $70,000 per day plus $1m ballast bonus.
In west Africa rates for a Baltic Exchange tess 52 index type vessel are around the $61,000 per day mark.
"I think you will have to watch thismarket next week, this is when you will really see it go because the February ships in west Africa have almost cleared out with just a few knocking about on the Continent, but once they have gone we will see rates go up," said the London broker.
"Do not expect too much action on the indices this week, but watch next week and March dates. Be prepared!"
In the Pacific Basin this week many owners appear to have got carried away with the rapidly-rising short period rates and "have priced themselves out of the market", according to ICAP Hyde.
"Index type tonnage rating in the mid-low $60,000s has scared off charterers who are quite happy to sit back and watch for the time being unless they have spot backhaul requirements to cover with short period tonnage," added the Londonbrokerage in its daily report.
The report noted that some Far Eastern owners have started to ease their levels slightly after realising that their "over zealous" rates are off the mark in view of the reduced period sentiment.
ICAP Hyde noted that vessels fixed for Pacific round voyages are able to achieve above $50,000 per day, for both shorter nickel ore trips and the longer rounds out of the North Pacific.
The Indian coasts remain firm with a 45,000 dwt vessel open on the west coast reported to be fixing on subjects for a trip to the east in the mid $50,000s.
