Bulk report – Week 26
The recovery in rates for the big ships was short lived with the market seemingly still fragile and subject to negative response at the first signs of any bad news. Rates recovered mid week on most routes after having dropped to the mid $4.00s. Today saw Roy Hill fix a 170,000-tonne 10% cargo from Port Hedland to Qingdao at $5.05 with Rio Tinto prior to that at $5.00. Timecharter rates during the week held at better levels compared to voyage with a 176,000-tonner open Shanghai fixing an Australian round at $10,250 daily but since then rates have slipped back to four figures. The Tubarao/Qingdao rate mid-week reached the mid-high $12.00s for 1-10 August but today saw Vale secure tonnage for 15-30 July at $11.30. There was talk today that perhaps as many as six ships were released back on the market at Pepel but further details are as yet unclear. Further north, there had been a step up in transatlantic fixing and rates improved on the key C7 Puerto Bolivar/Rotterdam route but slipped back to $6.00 or less.
A nervous week for panamax and kamsarmaxes with rates easier, generally proving that a slowdown in South American activity impacted on the Asia and Atlantic market. Just as rates fell, this once again prompted further trading as the week closed out. A 2008-built 82,000-tonner fixed and failed for a 20-30 July cargo to east at $10,300 daily plus a $530,000 bonus and re-fixed at $10,100 daily plus a $510,000 bonus. Today saw a similar vessel fixing at $10,750 daily and a $575,000 bonus. This supported views among some that trading from here will be sustained. The north Atlantic saw the tonnage list growing and fewer cargoes in the market with rates slipping back to under $10,000 daily for the longer rounds. An 82,000-tonner agreed $9,500 daily for a trip from Gibraltar via north coast South America and Egypt with redelivery Cape Passero at $9,500 daily. In the east, a 2012-built 82,000 tonner open Quanzhou fixed an east coast Australia round at $8,750 daily. Rates have eased but there were still some good numbers paid for spot positions. An easier paper market has sidelined period players.
Supramax
Overall a week of mixed feelings in both basins. Rates in the Atlantic climbed up at the beginning of the week but then receded, especially for vessels loading from the US Gulf. There was some period activity, with a 56,000-dwt 2006-built delivery US Gulf fixed for about four to six months at $13,000 daily redelivery worldwide and another similar-sized vessel fixed delivery Mumbai for about five to seven months at $9,250 daily also redelivery worldwide.
From east coast South America, a 2016-built ultramax was booked for a trip to the Far East at $13,100 daily plus a ballast bonus of $310,000 and it was reported that a couple more stems were covered at the same level on larger sized tonnage with July dates. A scrap trip paid $11,000 daily on a 53,000-dwt delivery in the Continent with redelivery in the east Mediterranean. At the end of the week a Tess 58 type was reportedly fixed at $13,000 to $13,500 per day from the US Gulf to the Mediterranean. Nickel ore continued lending support in the Pacific but other sentiment softened for ships open in the Far East and Southeast Asia. A 56,000-dwt open north China was booked at $8,500 daily for a nickel ore trip via the Philippines to China, or mid $9,000s to $10,000 daily taking south China delivery for a similar run. A typical coal trip from Indonesia to China paid at a rate from low to high $8,000s basis Singapore delivery.
Handysize
The end of June saw a positive return for all six BHSI routes with brokers feeling a little bit more positive in general. East coast South America was still showing the highest daily returns for owners. Asia had a hangover from Monday’s holiday in Singapore, with little new fixture information being reported this week.
There was a rumour the Apollo Bulker 33,124-dwt 2011 built which was open 10 July in Montevideo was apparently fixed at $10,000 daily basis delivery aps Recalada for a trip to North Coast South America. A few other deals were rumoured from east coast South America, the Emerald Enterprise 32,900 built 2015 open Imbituba was taken for coastal trade at $12,000 per day. Sources reported the Nord Imabari 38,271 built 2010 fixed at $14,800 wwr San Nicolas for trip to Morocco or Algeria and the Yangtze Dignity 32,414 built 2012 was linked to a charter delivery Paranagua for a trip via River Plate to Algeria at a rate in the mid $10,000s. The Sunset 2009 37,334 built 2009 was fixed delivery South Brazil for a trip to the Continent at $9,900 per day.
In Asia the Glorious Kauri 38,238 built 2012 covered delivery CJK prompt for 2 laden legs at $7,750 daily and the Anacapa Light 31,603 built 2005 open Hososhima was linked to a steels cargo to Thailand at $6,750 basis dop delivery.
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