Bulk report – Week 27
Not a great week for capes with all indices losing value and a larger fall on the T/C routes.
The main ore routes of West Australia and Tubarao to China have come off around 70 cents, with the former now in the high 10’s and the latter trading around $4.40 level. Both Rio Tinto and BHP are said to have fixed tonnage at this rate. There was talk of NYK fixing the Dream Coral (181,249-dwt 2015-built) at $4.30 for 24 July dates, but this has not been confirmed.
There was a rumour today of a possible fixture for Richards Bay to Rotterdam at a lower level, but nothing has emerged yet.
The Cape Providence (169,233-dwt 2010-built) which was open in Fangcheng had fixed with DHL for an Australian round voyage at around $8,000/daily, however it is understood that this fixture failed. Brokers are saying rates in the mid $5,000/daily are being discussed, which is almost $3,000 less than last week’s levels.
Rates in the Atlantic were also lower due to a lack of fresh cargo with the Transatlantic levels also falling from rates in the $8,000s to something in the $5,000s. There was talk during the week of the Anangel Unity (179,405-dwt 2015-built) fixing delivery Passero on prompt dates for a round voyage in the Atlantic at around $5,800 with Oldendorff to cover a Nouadhibou to Rotterdam cargo, but it has not been verified.
The Glovis Tender for USEC coal to Korea loading end July was rumoured fixed by Panocean tonnage at around the $21 level and Rio Tinto fixed an Oldendorff ballaster for their seven Islands to Qingdao cargo loading 15/25 July at around $14.50.
The initial slide on the panamax index at the start of the week was slowly drawn back, helped by the large volume of fixing during the week from the Asian market. However, the Atlantic basin remained steady with enquiry from the America’s whilst the north Atlantic remained less active albeit tonnage here was in limited supply. Period activity remained active, a 82,100-dwt open Hong Kong was fixed for 11-13 months trading redelivery worldwide in the low $10,000’s and a 95,700-dwt open north China was fixed for a shorter period of four to six months redelivery worldwide at around $10,850 daily. An 82,000-dwt 2016-built was fixed delivery passing Gibraltar for two-three laden legs redelivery being Skaw-Gibraltar range at $10,000 daily for the first two legs and $12,500 daily for the third leg.
From the Atlantic an 82,000-dwt 2011-built was fixed for and east coast South American fronthaul at $10,750 plus $575,000 ballast bonus whilst for transatlantic trips a 77,000-dwt 2008-built was fixed delivery Ponta de Madeira for a trip redelivery Skaw-Gibraltar at $12,500 daily. An 84,000-dwt 2013-built was rumoured fixed basis retro sailing Singapore 2 July for a trip via east coast South America redelivery Singapore-Japan at $10,500 daily. Limited activity from South Africa but a 74,000-dwt 2002-built was fixed basis delivery retro sailing Ennore, for a trip via South Africa redelivery China at $10,000 daily.
Whilst in Asia, a 92,500-dwt 2011-built was fixed delivery Japan for a trip via east coast Australia redelivery Taiwan at $8,250 daily and a 83,900-dwt 2013-built was fixed delivery Qingdao mid-July for a trip via Weipa redelivery China at $10,500 daily. For the coal runs to India an 81,600-dwt 2012-built was fixed basis delivery Lumut mid-July trip via Indonesia with coal at $9,500 daily. Further north an 81,700-dwt 2017-built was fixed for a NoPac round basis delivery Busan prompt redelivery India with petcoke at $9,500 daily.
Supramax
The week started slow and the US Gulf market has been softer but it showing some resistance now. Grain cargoes from the Black Sea to the Middle East and Pacific lend support in the Atlantic whilst in Asia, nickel ore from Indonesia came back to the market and was moving noticeably again. On period front, there was talk of a 57,000-dwt delivery US Gulf fixing at the level of $10,000 daily for about one-year trading. Two ultramax vessels both delivery north China were fixed at $10,000 daily for about 12 months $9,500 daily for about five to seven months respectively with redelivery worldwide.
From the US Gulf, a 54,000-dwt 2011-built was fixed for a petcoke trip to Turkey at $12,000 daily. A Tess 58 type was fixed on subjects at a rate close to $20,000 daily from the Gulf with redelivery in India. A 58,000-dwt 2011-built delivery in the Turkish Mediterranean was booked for a trip to west Africa at $9,000 daily, and a 55,000-dwt delivery Bejaia was paid in the mid $9,000s for a similar trip early in the week.
In the east, nickel ore trips to China maintained levels in the $8,000s basis delivery north China or a rate in the $9,000s for any vessel open closer to the loading port in the Philippines or Indonesia. A 57,000-dwt 2010-built delivery in the Philippines was fixed at $7,700 daily for a typical coal run via Indonesia to China. A 55,000-dwt 2007-built was reported paid $8,500 daily delivery Cambodia for a trip via Indonesia to India.
Handysize
The first week of July was very uninspired with the Handy index gaining just two points up until time of printing. There was a clear difference between the Atlantic and Pacific basins with the routes from the Continent and east coast South America making steady gains whilst all the remaining routes lost ground. No reports of any period activity came to light.
From the Atlantic a 32,000-dwt was reported fixed for a trip delivery Turkey redelivery US Gulf at $6,000 daily and a handy was fixed for a Black Sea to west Africa run at around $8,000. Also from here a 37,000-dwt was heard fixed again to West Africa in the low $9,000s. Sentiment remained steady for vessels from east coast South America although fixtures concluded remained under wraps.
In Asia a 32,000-dwt open Malaysia was fixed for a west Australia round voyage with redelivery back in south east Asia at $5,750 daily mid-week. A 32,000-dwt was linked to a logs run from Portland for a trip redelivery Singapore-Japan in the low $9,000s. At the beginning of the week a 32,000-dwt open Japan was reported fixed for a trip redelivery south east Asia in the high $6,000s and a 38,000-dwt was fixed delivery north China trip via South Korea redelivery Thailand at $7,000 daily.
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