Panamax Market Remains on Road to Recovery

The panamax market remained on track for a recovery from the recent slump, despite various public holidays, brokers said on Wednesday. Although South Korea, India and several European countries were absent from the grain market on Wednesday, brokers said that the outlook was positive.

This was particularly true of the Atlantic panamax trades, where deals continued to be concluded off market at firmer levels, they said.

Brokers cited Korea Line's booking of the 1984-built Ethnos for US Gulf delivery and Far Eastern redelivery, which bettered last-done levels. The fixture was done at $6,700 per day, up $400 daily from early week indications.

But other London brokers played down the gains.

"Panamax rates dropped so suddenly that there's a chance that this is just a reaction to the falls rather than an actual recovery," one said.

Another doubted that the current lackluster demand would be enough to kick start the panamax recovery.

Those brokers were also reluctant to be positive on the state of the Pacific panamax trades but they conceded that the dramatic slide in earnings had at least been arrested.

"Nothing's happening on the rates side, but at least the market has stopped falling," one said.