Ton Mile Trader

Baltic Indices
BDI   2225  up 58
BCI   2839  up 9
BPI   2230  up 134
BSI   1688  up 35
BHS   I704  up 16

Commodore Landsberg: The Panamax market continues to surge on the strength of a large amount of grain and coal cargo, as well as significant period activity. Capesize rates are also firming due to a moderate amount of iron ore fixtures but the Cape Panamax spot ratio continues to narrow. Yesterday the ratio was 1.86 to 1, today it has fallen to 1.59 with Capes averaging $28,485/day and Panamaxes $17,866/day. It took a bit of time but Panamaxes are finally bringing in more than Supras ($17,653/day). Across the board, very decent rates historically speaking. Wish I could say the same for the equity markets. If dry bulk really is a valid indicator for world economic growth, something has got to give. For now though, freight rates are firming while global equity prices continue to come crashing down.

Dry FFAs
Contract    Close   Current  Diff
======================================
BDI Mar    2055   2080   +25
BDI Q2    1960    2000   +50
BDI Q3    1730  1780    +50

CS4 Q2    $25,406   $26,000   + $594
CS4 Cal10    $22,935   $23,500   + $565 

PM4 Q2      $15,895   $16,250   + $355
PM4 Cal10   $13,658   $14,000   + $342

SM6 Q2     $14,625    $14,500   - $125
SM6 Cal10    $12,063   $12,000   - $63

Thin volumes on FFAs. Downward pressure on steel prices has of course slowed demand for ore into China. Though buying/selling can still be found – there does not seem to be an abundance of buyers in today’s market. The good news is that loading is reported to have resumed in the Pilbara region in the Land Down Under. Other good news includes a firm Panamax sector – as grain shipments ex S Am are reported to be providing support to the market.