Bulk report – Week 22
Rates fell throughout the week as the market suffered due to a build-up of prompt ships and intermittent holidays favouring charterers. The market both in the Atlantic and the east relied on ore cargoes with very little action from coal shippers, leaving an imbalance. Rates from Tubarao to Qingdao slipped under $14.00 and further north, transatlantic rates on the key Bolivar/Rotterdam run were now under $6.00. Timecharter activity has been negligible but earlier this week a 175,000-tonner allegedly went at $9,000 daily for a Colombia run with redelivery Cape Passero, but many suggesting this rate was not repeatable as the week closed out. Today the C8 route published at $7,264 daily. Front haul timecharter rates were said to be hovering around $20,000 daily for ships with northwest Europe delivery. In the east, interest from the major Australian miners was spasmodic and rates swiftly dropped under $6.00. Today saw BHP Billion booking tonnage for a 15-16 June cargo from Port Hedland to Qingdao at $5.55.
Another bad week for panamax and kamsarmax vessels with no signs of any recovery in the short term and any positive sentiment from last week having evaporated. Then there had been signs of a steadier north Atlantic market last week but this week saw new business here in short supply with transatlantic rates barely at $6,000 daily for standard types. A lack of sustained activity from South America has impacted on the Atlantic and Asia and charterers running spot cargoes able to secure tonnage at rates in the low-mid $8,000s daily plus bonuses around the mid $300,000s. Kamsarmaxes fixing from northwest Europe for trips via north coast South America to the east were around $11,500 daily. In the east, a lack of NoPac business has left many ships sitting idle and despite watching a falling South America market some owners still preferred to ballast there rather than the US Gulf. Of those charterers with NoPac cargoes some have asked for a US Gulf load option. An eco 82,000-tonner 2013-built open Hachinohe secured $7,000 daily for a NoPac round while a 2017-built Kamsarmax open Qingdao agreed the same rate for a bauxite run from north Australia to Singapore-Japan. Charterers this week have been increasingly been able to secure ships on an APS basis especially on the short runs with a 2010-built Kamsarmax fixing from Tarakan to Malaysia at $6,000 daily plus a $65,000 bonus and more like $5,000 and a $50,000 bonus for older smaller types.
Supramax
The ultramax and supramax sector had another depressing week with rates sliding across all routes, especially from the US Gulf which had very limited enquiry and a build-up of tonnage. A 57,000-dwt was fixed and failed for a front haul redelivery Japan at $15,250, down on last done. From the Continent, scrap runs to the east Mediterranean were paying around low $10,000s depending on delivery point. For the runs from the east Mediterranean to the east a 58,000-dwt 2007-built was fixed basis delivery Canakkale with redelivery Indonesia in the low $13,000s. East coast South America remained very uninspiring and 52,000-dwt 2002-built was reported fixed basis delivery Recalada for a trip to Turkey at $9,000 daily and an 63,000 ultramax was fixed delivery Vitoria for a trip to India at $11,750 and $185,000 ballast bonus.
Asia sentiment was largely negative and an operator took a Tess 58 basis delivery Busan for a NoPac round redelivery China in the high $6,000s. Further south, vessels open south east Asia struggled. A 55,400-dwt 2004-built was fixed basis delivery Kosichang for a trip via Indonesia redelivery China at $6,100 daily. On backhaul, an ultramax was linked to a trip redelivery US Gulf sub $2,000 daily. A trickle of short period came to light, where a 63,000-dwt was fixed delivery Far East for four to six months at $9,000 daily.
Handysize
The week started on a quiet note and struggled to get going, with holidays coming up next week in Europe and elsewhere seemingly leading to the lacklustre week.
Across all routes rates slipped, apart from east coast South America transatlantic which at time of publishing was the only one to buck the downward trend. From here a 37,000-dwt 2014-built was reported fixed basis delivery north Brazil for a trip to Norway at $10,500 daily and further south a 32,400-dwt 2009-buiilt was fixed delivery Santos for trip to the west Mediterranean at $9,000 daily. From the Continent, a handy/handymax was rumoured fixed for a scrap run in the mid $9,000s otherwise the area remained very slow. Limited activity was also reported from the Asian markets. A 34,300-dwt 2014-built open South East Australia was fixed for a trip Far East at $10,500 with logs.
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