Atlantic Panamax Rates Soften, Fixtures Lay Low

Sentiment for the Atlantic panamax freight market may be softening while fixture rates stay on the low side, shipbrokers said on Tuesday.

"It may be settled in the (Far) East but panamax freight in the Atlantic looks softer as there are still lower rates being reported," said one London-based broker.

The majority of routes quoted on the overall Baltic Panamax Index rose by three points on Tuesday to 1,309 - but the transatlantic round voyage timecharter route, a key element of the Index, eased by $25 to a daily average of $10,798. Regarding fixtures, shipbrokers reported a buoyant prompt rate of $8,250 daily for a backhaul charter for the 1997-built, 73,427 dwt panamax Fearless, fixed for prompt Kinoura delivery followed by a trip via the north Pacific with Med redelivery. A similar route on the Baltic Panamax Index shows the average market level at $7,460 daily.

Shipbrokers said period fixtures again proved popular in the eastern markets, as the 2001-built 74,000 dwt Cos Joy was chartered by South Korean charterers for delivery Shanghai in early July for four to six months trading at $9,500 daily. Another reported chartering was the 1997-built 73,192 dwt Great Jade for late June Yantai delivery to be followed by three to five months trading at $9,450 daily.

Panamax timecharter business for South America included the 1993-built 65,671 dwt Irene set for prompt Le Havre delivery and chartered by Louis Dreyfus. The ship is bound for a trip via east coast South America, with redelivery in the Singapore-Japan range at a rate around $10,750 daily.

Shipbrokers said the 1989-built 64,282 dwt Corato was fixed on a retro June 9 Skaw delivery basis, also for a trip via east coast South America with redelivery in the Singapore-Japan range but at $10,250 daily by the same charterer.