Shipping News - Dry Trade

CAPESIZE Sentiment for this week was definitely negative. The physical market started to drop, led by a lack of activity in the Atlantic. The lack of fresh demand on the T/A route combined with the absence of 2nd half November front haul business put an effective stopper on the market. Where we saw northern Atlantic demand commanding high rates, the Brazil route was never able to compete and now we have seen re-let business concluded at between usd 28 and 29 pmt for Brazil to China. In the Pacific the major miners successfully bought the market down well into the usd 11.00 mark for W.Australia cargos, but one player seems to have been caught out and has paid a premium for very early vessels. On the coal side there was a flurry of Chinese demand for S.African material, but with the subsequent rise in the FoB price to a 6 month high, further spot sales have dwindled and as such ballasters will have to rely on Brazil, which is looking thin for end November demand. PANAMAX: The Pmax market is still suffering from low activity and little demand as rates were sliding after the short upturn last week. The Atlantic is still weak with oversupply of tonnage although there are less ballasters coming in from the FEast. US Gulf grains export still active with fronthaul fixtures in the 27k range but TA rounds sliding slowly to 17k. In the Pacific the market is supported by more fresh requirements and a better balance for available tonnage. Typically Pacific fixtures hovering around 19k mark, but better figures achieved for Aussie and India business. The period market has been slow with an almost flat curve from 4-6 months up to 2 years around the 22k level. FFA gradually falling in anticipation of lower freight rates going forward. despite a still bearish sentiment there is an increasing opinion there is support at current levels with room for a short term coming improvement.