Maritime Market Report - Week 11-08

Tanker Market: Stable

The VLCC market this week has seen some softening owing to limited demand and plenty of tonnage supply in the MEG. 78 VLCC's were available this week compared to 68 last week in the MEG. The Atlantic VLCC market was also lackluster. However, the WAF suezmax market showed a little more activity, but the rates started to drop by the end of the week to ws 142. Little change was also observed in the NSea Aframaxes. The Med/BSea Aframax market saw some firming with rates climbing to ws160. The upcoming Easter holiday season is already putting a damper on rates and we don't expect rates to rally anytime soon.
The east of suez LR market has been relatively quite this week. The MR's on S'pore/Jpn route 30,000 mt saw some firming to ws 200 lvl. Lumpsum rates for Med/UKC cargoes was stable around 2.1 million basis 65,000 mt [http://www.fearnleys.com/]. The transatlantic market was also soft with rates sliding to ws225 basis 37,000 m/t. Similar, weak market was visible in the NW Europe handies and the caribs basis 38,000 m/t. We don't see any significant improvement in the the market with the easter holidays coming up and wide availability of tonnage.
Following vessels were sold this week [Fearnleys]
Vessel Size Built Buyer Price Comments
Tohdoh 261200 1991 Undisc 42.5
Apollo Sun 259000 1985 Pvt
Piemonte 114000 1987 China 18 D/Sides
Emerald Isle 68300 1989 China 25 D/Sides

Dry Bulk Market : Active
The handysize average index rose more than usd 2000 this week with improvements in all areas. MV medi Dublin was said to fixed at a staggering usd 100000 for a ECIndia to China voyage. The short period employment was reported close to usd 64000 lvl.
The panamax market was relatively stable this week with the average for the 4 t/c routes up usd 3000. Atlantic rounds are now fixing about usd 70,000 daily and trip to Far East done today at usd 80,000 on LME type. An LME type fixed open Porto Vesme mid march at usd 77,000 for 11/13 months. Pacific rounds now concluded around usd 60,000 lvl, while low/mid usd 50,000 for backhaul.
In the capesize market the market seems to have peaked with slower trend evident. The t/c index average was reported up usd 5000 from lase week, but weakening because of lack of fresh cargoes. Brazil/China route was around usd 70 and Tubarao/Rdam reached usd 35 lvl. Major Japanese chtrs/ownrs reported securing NB capers for dely as far ahead as 2010, no confirmed details reported. The Baltic index was up 280 points to 8346 this week.

Gas Market: Low
No improvements in the gas markets observed this week. The gloom will persist in the market for the coming weeks with low LPG prices and the export cuts announced by mideast producers. The market might show some signs of improvement once the mid-east suppliers accept April liftings.

New Building Market : Strong
Steady activity was seen in new orders this week with dry bulkers ruling the roost again. Howevr, the demand is still below the 2007 level as reported by fearnleys. Stealth Gas contracted 2 LPG newbuildings 5000 & 7500 cbm at Kanrei Zosen delv 2010/11. Shanghai Puyuang also palced orders for 4 VLOC's at Guangzhou Longxue delv 2011/12.