Asia Pacific Panamax freight rates were steady Wednesday on the back of reasonable activity levels as coal cargoes continued to surface out of Australia and Indonesia, shipping sources said.
“There is indeed some optimism [in the Panamax market]. I think we will see small increases in rates but I am not overly optimistic,” a source with a Panamax shipowner said.
Panamax tonnage availability on ships opening for fresh employment in the next 10, 20 and 25 days was heard to be falling.
According to a Panamax shipbroker, 81 vessels will become available in the Pacific region within the next 10 days, compared with 88 vessels a week ago. Within the next 20 days, 100 ships will become available, compared with 111 a week ago, and for the next 25 days, 103 ships will be available, from 112 last Wednesday.
“The market is improving. The owners are not taking APS [arrival pilot station] rates. I would say the rates are only going up for later dates such as July 15-20. The spot ships are still be talked in APS terms,” said a source with a Panamax operator.
APS delivery is when charterers only start paying hire at the load port, rather than from the moment the ship leaves the last discharging port of the previous contract, or from dropping outward pilot (DOP) station.
Among fresh fixtures heard, there were reports of Bunge having done a deal at $8.15/mt on Indonesia to Dahej, west coast India. Bunge was not available for comment.
The Adani Group-controlled Libra Shipping was heard to have split its Capesize 150,000 mt plus/minus 10% coal cargo loading from Bunyu-Taboneo range in Indonesia to Gangavaram, east coast India, with options to go to Mundra, west coast India. The charterer was said to have taken two taken two vessels to load 80,000 mt each at $7/mt for east coast India discharge.
The other cargo heard was that of charterer MUR, which had a 70,000 mt plus/minus 10%, loading July 11-15, from Indonesia’s Bunyu-Taboneo range to Dahej, west coast India.
Panamax freight rates from Banjarmasin in Indonesia’s South Kalimantan province to Mundra port, west coast India, and Paradip, east coast India, were assessed at $8.75/mt and $7.25/mt, respectively, both up 25 cents/mt.
The rates from Richards Bay to Mundra and Paradip were assessed at $14.75/mt and $13.75/mt, respectively, also both up 25 cents/mt.