# Charter rates



## John Cassels (Sep 29, 2005)

Just read in one of the national papers over here that voyage charter hire
rates have risen so much that daily rates for a panamax bulker are up to
$ 50.000 - $60.000. Two years ago they were at $25.000.
Owners and operators that kept their nerve over the past years must now
be laughing ( and rightly so ).
Last panamax I chartered for a round trip North Atlantic was fixed at $8.600
per day. That was in 1999 and had the pick of the best.


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## Thamesphil (Jul 22, 2005)

Current market levels for a Panamax Cont/FE tripcharter are $69,500 per day. In 2005, a similar voyage would have been $30,865 per day.

Capesize rates are currently at $107,000 per day for Tubarao/Rotterdam ore cargoes, up from $52,900 inn 2005.

Most of the shipping markets have had good times over the past few years and the dry cargo market, especiallly, is going through a bonanza, mainly due to Chinese industrial production. This is also reflected in the S&P markets where shipowners are making a mint on asset play. You could order a capesize newbuilding for about $65 million not so long ago and now some of these ships are fetching $120 million on the resale market as they come up for delivery from the shipyards.

Phil


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## John Cassels (Sep 29, 2005)

Phil , any idea what the rate is Iron ore , 7islands - ARA. My last recollection
was in the region $ 3.25 p/t.


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## non descript (Nov 18, 2005)

JC, With Tubarao/Rotterdam fixing today at usd30.75 it is likely that Seven Islands/Rotterdam would pay about usd28.00


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## John Cassels (Sep 29, 2005)

Thanks Tonga. I must be way out of touch !.


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## non descript (Nov 18, 2005)

John Cassels said:


> Thanks Tonga. I must be way out of touch !.


JC, don't worry, we are all equally out of touch... Recently, a capesize was fixed for 12 months timecharter at usd75,000 (a rate that was until that moment, unheard of and was usd4,000 p/day more than anything available to the owner) - and 11 days later the same ship was sub-let for the entire charter at usd84,000 p/day. A profit of usd3.285million is not to be sneezed at


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## jazz606 (Jan 21, 2007)

How much of this cost escalation do you think is fuel related ?


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## non descript (Nov 18, 2005)

Almost none of it - the freight market is driven by Supply and Demand, and whilst it would be foolish to suggest that Fuel is not a very valid part of the equation in terms of general freight rates, the fact that the time-charter rates (which of course exclude fuel) are standing at all time record, rather underlines that issue.

To indicate the amazing strength in the market, there is today a report of a modern capesize securing usd100,000 p/day for 12 months.

Amazing times and built almost totally on raw materials into China and the knock-on effect of that vast market.


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## non descript (Nov 18, 2005)

*Another milestone*

For those of us who remember the timecharter rates of usd2,000 per day for a large bulk-carrier, all we can say is _wow, how things have changed_… for today’s market report (8 October 2007) we see the Oldendorff controlled bulk carrier *Cape Trust*, 177,000 tdw built 2006, delivery Gijon for tct east at usd 225,000 to Panocean ( Oldendorff fixed her in at usd 215k on Friday, so 10,000 per day profit for 68 days is not bad money).


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## Bill Davies (Sep 5, 2007)

Tonga said:


> For those of us who remember the timecharter rates of usd2,000 per day for a large bulk-carrier, all we can say is _wow, how things have changed_… for today’s market report (8 October 2007) we see the Oldendorff controlled bulk carrier *Cape Trust*, 177,000 tdw built 2006, delivery Gijon for tct east at usd 225,000 to Panocean ( Oldendorff fixed her in at usd 215k on Friday, so 10,000 per day profit for 68 days is not bad money).


Considering Henning is perhaps the greatest 'bear' and pessimist of the European owners that should put a smile on his face


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## John Cassels (Sep 29, 2005)

Thanks for the update Tonga. Looks like the world has passed many of us by.

Seems like only yesterday that I fixed my last panamax for 8.6. Also seem to
remember ( about 1992) fixing a cape size for a 5 year TC in the region of
just under K10.

Thanks again.


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## eldersuk (Oct 24, 2005)

The only charter I've ever been on was back in the 60's on a 14,000 dwt. bulker at GB£480/day!!!!

Derek


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