International dry bulk shipping market weekly report (2010.11.4)

This week, the demand for bulk shipping of bulk cargoes has been shown to be weak, with more vacant ships and excess capacity to suppress the market. Baltic dry bulk freight index closed at 2510 points on Thursday, down 197 points from the previous week, a decrease of 7.28%.

The Panamax-type boat market this week saw Panamanian ship market prices fall all the way. The Baltic Panamax Freight Index closed at 2,287 points on Thursday, down 178 points or 7.22% from the previous week.

After the Panamax-type ship market rose for six consecutive release days, it was underpowered and began to fall at the beginning of the week. Although the demand for cargo was relatively stable, the pressure of overcapacity forced the market to rise. This week, the amount of coal and grain pallet inquiries in the Atlantic market increased steadily. However, the US Bay entered the peak season of grain export, and the constant stream of ships was released to the air. As a result, a lot of capacity was hoarded and the freight rate of the market was unable to rebound. . At present, the economic recovery in developed countries such as Europe and the United States is relatively slow, and the year-on-year decline in trade in the Atlantic Ring Line has resulted in limited freight traffic on some routes and the competitiveness of routes is very fierce. Shipowners frequently rush for goods. Compared with the continuous decline in the Atlantic market, the Pacific market this week in China, Japan and other coal transportation support under the support of market conditions have improved. However, due to the bad weather on the Pacific coast, some of the coastal ports have been experiencing serious berthing during this week’s discharge. Although the port congestion has consumed some of the capacity but has affected subsequent coal transportation, the market conditions have been oscillating. The northern hemisphere countries have gradually entered the winter, coupled with the "La Niña phenomenon" to promote coal demand this week continues to rise, thermal coal prices in Newcastle, Australia, Richard Port, South Africa and the three ports in Europe have broken one hundred, for a few days of Panamax The boat market brings confidence. On Thursday, the average daily rent for four voyage chartered routes in the Panamax market was US$18,400, a decrease of 7.54% from the previous quarter. The Panamax-type boat, whose daily rent is still low, has attracted many charterers to enter the time chartered market this week. Although trading volume has increased over the previous week, rental rates have stagnated. According to transaction records, this week, a company rented the “Cymbeline” (built in 2001, 73,081 DWT) for a 4-6-month daily rental of US$23,000.

The Capesize ship market The Capesize ship market was dragged down by the Chinese factors. It fell for five consecutive release days this week and the market sentiment plummeted. The Baltic Freight Index on the Bohai Sea closed at 4011 points on Thursday, down 261 points from the previous week, a decrease of 6.11%.

China’s influx of iron ore import activities for several weeks in recent times has kept the inventory of major ports along the coast of China at a high level. This has greatly reduced the demand for imported ore by Chinese steel mills, dragged down the market for sea bream-type ships, continued the downward trend in the last weekend and continued to increase the decline. As of October 29, the total inventories of iron ore ports reached 68.81 million tons, which fell from last week. Recently, after China experienced a period of limited production and production of energy-saving and emission-reduction technologies, steel production dropped, and steel prices began to pick up slightly. However, the increase in iron ore cif prices was even greater, and the pressure on the shoulders of steel mills did not ease the slightest. The China Iron and Steel Association stated that Chinese steel mills must increase the use of domestic ore in order to reduce China's dependence on imported ore. This news also casts a shadow over the ore transport market. In the Atlantic market, the freight rate of Brazil's mines needs to decline, while freight rates in the North Atlantic market are hot, but the freight rates in the market continue to decline, causing the overall prices to fall. On Thursday, the freight rates for the iron ore routes from Western Australia and Brazil to Tubarao to Qingdao were respectively US$11.76/ton and US$28.68/ton, down 2.65% and down 5.50% respectively from the previous week. The 2011 iron ore negotiations are about to kick off. The change in the long-term mineral ore pricing model in 2010 has increased the fluctuation range of iron ore CIF prices. Some Chinese steel mills have been in a loss situation. At the same time, India’s recent news that “maybe no longer exporting iron ore in 2011” casts doubts on the negotiations of the long-term mine. On Thursday, the average daily rent for four voyage chartered routes for Capesize vessels closely related to FFA transactions was US$40,200, a decrease of 8.22% from the previous quarter.

Handysize boat market continued to decline this week, the market pressure has not been eased after grain and coal transportation have entered the busy season one after another. The BSI closed at 1,768 points on Thursday, down 113 points from the previous week and a decrease of 6.39%. The Handysize Freight Index (BHSI) closed at 862 points, down from the previous week. 48 points, a decrease of 5.27%.

Under the influence of the holidays in Singapore and India, the Pacific market this week saw a reduction in the supply of goods and the market performance was light. In particular, after the Indian authorities announced that they would consider banning the export of iron ore from all ports, many people in the industry said that the current situation of excess capacity is likely to calm the market in the fourth quarter and it is difficult to see a big rise in the situation. Although the Atlantic market was under pressure from a large number of vacant capacity, although some grain and coal shipments were inquired, the airline tariffs went straight down. This week, the daily rental rate for the Shrimp Ships fell to US$17,300, and the Handysize ship market was also unable to escape the decline and fell to a level of around US$12,600.