Hopes for Panamax Bulkers in 2017

resilient demand for coal from China in the coming year results in bouyant panamax market.

News ID: 71051

Date: 23 December 2016 - 12:10

In the sales and purchase market this week, the 2001-built Marichristina owned by Chandris was sold to a Greek company for $5.2m, VesselsValue reported.In the sales and purchase market this week, the 2001-built Marichristina owned by Chandris was sold to a Greek company for $5.2m, VesselsValue reported.According to Arctic Securities, “Chinese coal output and demand for next year are both expected to be largely in line with 2016, forecast at 3.35bn tonnes and 3.49bn tonnes, respectively, leaving potential for seaborne volumes of coal to help boost dry bulk demand and freight rates”.
Beijing has already completed its coal-cutting target for 2016, shutting down two coal mines and cutting 1.8m tonnes per annum of capacity throughout the year.
The country has set a target of closing its last three coal mines by 2020, meaning a total of 6m tonnes per annum of coal capacity will be shut, Arctic Securities added in a note.

Rates were, however, weak amid the holiday season. Freight rates last week dropped as charterers took advantage of the fact that owners were trying to seek coverage for the upcoming Christmas and New Year holidays, brokers said.

“The interest in the Atlantic came to a sudden halt causing many owners to scramble, in an effort to secure any possible cargo that could get them through the Christmas holidays and hopefully hold their tonnage busy until the end of the Chinese New Year,” said Allied Shipbroking in a report.
“This harsh correction is likely to follow on over the next couple of days as sentiment remains the same,” it added.Earnings remained depressed on all the benchmark routes, with the P1A_03 Skaw-Gibraltar transatlantic round voyage registering the largest decline at 42.1% over the week to close at $9,472 per day on Tuesday.
On the P3A_03 Japan-South Korea transpacific round voyage route and the P4_03 Japan-South Korea trip to Skaw Passero, rates nudged down by 24.5% and 29% respectively compared with the week earlier.
In the spot market, Norden took the 83,690 dwt, 2008-built Pan African for a trip to the East via the Panama Canal at $13,250 a day, plus a $325,000 bonus.