what’s behind the scene? (or a fixture)

Let’s take a closer look to this fixture which was reported earlier this week on mv ‘amelie’, said gone asf  2013 34’650 dwt dely Murmansk prompt trip redel Brazil intention fertiliser $8,500 daily which has been a kind of Week 29 hit in the baltic handy market.

The daily hire is quite a nice number, especially to end up in Brazil, compared to BHSI, HS1 on 20 july which was asf Skaw-Passero trip to Rio de Janeiro-Recalada 28000 3990 +220.

But what’s behind the scene?

We understood owners took advantage of charterers being squeezed on the laycan to steer the money up, also the ship was circulated on 4th july “open St Law 9th july”, then on the 11th july “open St law 13/14”, then on the 14th july “open st law today alt Ncont/skaw 25th july” and finally put on subs on the 20th july for the business on which she’s now fixed. The 8’500 usd obtained on aps bss, are equal on DOP St Law basis somewhere touch below 6’000usd, this considering their is no deviation on the ship itinerary. It’s still out performing the index but again this fixture is about to cover opex on the ship but not much more.

Generally speaking, handies are the survivors on the index decline. basis today’s index,  BDI is back touch above 700, BCI back below the 900 mark, BPI in the low 800, BSI back below the 700cap and handies keep going up the hill. “Up the hill” as still need to train a bit and keep going up to consider calling it the Mont-Blanc summit. Trying to give an analysis to this downward correction it seems it’s always the same thing which is happening. Some happy few Owners being open at the right time in the right area are enable to secure quite above market level fixture, the rumor is wispread all over the place, then this area is getting hot, owners keep trying to get the market up, up to the breaking point when charterers / traders have managed to re organize themselves and are in position to temporize and wait for market going down again and get a freight closer to what’s in their books. Alternatively, at least on the grains, traders are struggling to find out their stem being in line with their contract as in the northern continent we are in a transition period, with last year crop being sold out (or so) the fresh crop arriving slowly in the ports’ silos and traders have to check out where they’ll find the right quality/quantity at the right price being available.

if you’re open with a supra or a supra requirement in the med/blsea area, you should read this one Blsea market and incidence on areas around… and if you’re open with a handy or Panamax (ship or requirement) in this area, same, you should read it, but reading between the lines only and call us, if you’re open elsewhere just call us (or contact me on the blog or twitter or by telex… any modern tools are available here).

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