Both charterers and owners are playing a waiting game in the current volatile freight rates market. Charterers are hoping for a further drop in freight rates while owners are reluctant to make downward adjustments. The Baltic dry indices (BDI) have come off the December 2004 high considerably. Against a falling freight market, asset prices have remained firm all along, with climbing prices for five-year-old Cape and Panamax vessels. Handy vessels having maintained an ascent throughout and only plateaued over the last two weeks. The 'top deal award' for December 2004 was reserved for the sale of Malaysia International Shipping Corp's (MISC) fleet of 32 bulkers to the Restis Group, Greece at US-dollars 740 M. The capesize market moved up in December 2004 before softening as the New Year prepared to settle in. Chinese stocks of coal are healthy and imports have eased, therefore demand into China's expected to remain slow until mid-February 2005, after which China should return to the international markets with renewed fervour. The Panamax freight market has come off the record highs of the first half of December 2004. The softening is being driven by an oversupply of tonnage in the Pacific basin, as well as easing Chinese demand. China's steel production is expected to maintain its strong growth over 2005 and iron ore imports into China should resume in full swing after the festivities of Chinese New Year are over and existing iron ore inventories experience a draw-down to feed growing demand from steel mills. The onset of the grain season in the southern hemisphere is likely to result in additional demand for Panamax vessels in the latter half of first quarter 2005, which may further assist in reversing the falling trend. The positive sentiment in the market is reflected in Panamax period activity. The Handymax market is also facing a change in momentum of the freight market. Soyabean imports into China in 2005 are expected to register a considerable increase on account of strong demand for soya meal. The ongoing uncertainty in the commodity market has led to a steady softening in the Handysize freight market in the initial two weeks of 2005.
Strong demand set to keep dry bulk freight rates firm
Internationaler maritimer Frachtmarkt. Trockenmassengut. Preisentwicklung
Oils & Fats International ; 21 , 2 ; 17
2005
1 Seite, 2 Tabellen
Article (Journal)
English
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