The capesize market may have paused for thought today, but panamax rates are still flying with huge increases seen over the past three trading days.
Rates increased by a huge $1,965 on Thursday last week and rose by a further $1,650 on Friday on the benchmark route for trans-Atlantic roundtrips from Skaw/Gibraltar.
Daily increases of over $1,000 have not been seen on the route since July 2018, according to Baltic Exchange data compiled by TradeWinds.
The trans-Atlantic route today saw a further increase of $540 and was assessed at $16,670 daily, the highest level seen since mid-December 2017, the data shows.
The weighted timecharter average for the Baltic's four panamax benchmarks has increased by 31% since last Monday and was assessed today at $13,534 daily.
Market sentiment has been buoyed by trade war relief between the US and China and the postponement of additional sanctions, Clarksons Platou Securities said in a report on Monday.
A tale of two basins
Rates have been increasing on all four of the Baltic's panamax benchmark routes since 21 June, but advances have been more dramatic in the Atlantic basin than in the Pacific due to tight tonnage availability.
Charterers can today expect to pay around $22,850 per day for panamaxes heading east to Taiwan or Japan from Skaw/Gibraltar, a 23% increase on seven days ago, according to Baltic Exchange assessments.
However, a trip west from South Korea or Japan to the Mediterranean was assessed today at $3,414 daily, just 16% more than last Monday.
Time for a break?
A market correction could be drawing near, Baltic Exchange analysts suggested on Monday.
"The end of last week saw multiple rumoured failures and it seems that charterers have taken this as a sign of a possible turn in fortunes, as today has been bereft of the normal chatter, even for a Monday," the Baltic said today in its market report.
"The Atlantic was especially quiet with most brokers admitting to hearing little traded, whilst Asia was also taking stock after the weekend."
On Friday, analysts reported that a number of fixed vessels had failed on subjects, especially from the Black Sea.
Some were refixed "quickly on better terms", the Baltic said.
Forward freight agreement (FFA) contracts for panamaxes in 4Q have priced down by $200 to $11,500 per day since Friday, Clarksons Platou Securities noted today.
