Bulk report – Week 20
The Capesize market managed to turn its fortunes around this week stemming the slide from the previous week. Opening the week at $34,542 the 5TC weakened until midweek before posting a solid 959 gain to settle at $32,593. This revival is largely Pacific led with a small assist from the ballaster routes. The North Atlantic remains weak and largely not dropping further due to an already stretched tether to the Pacific Basin. The Transatlantic C8 at $29,790 is currently at a difference of $10,456 to the Transpacific C10 at $40,246. While prone to a volatile price shock due to its minimal cargo and vessel volume, this week the region was largely a bystander. The Brazil to China C3, currently at $26.21, traded in wide spreads this week with neither side making much headway. The route ticked up slightly but little activity was heard. Moving into the new week the sentiment on paper was on the up, whether this is on the back of stronger physical fundaments of maybe just speculators rolling the dice is as yet unknown.
The start of the week proved to be a little muted for Panamaxes with mixed opinions on the market with consistently wide bid/offer spreads. The Atlantic saw solid support for the front haul trips from the North Americas, whilst transatlantic demand proved to be weak with rates driven down particularly for the short duration trips. From EC South America, second half June, found some backing whilst the nearby position remained under pressure. An 82,000-dwt delivery Singapore agreeing $29,500 via EC South America for trip Far east. In Asia, sturdy demand led to firmer rates from Indonesia assisted midweek with renewed support from ECSA. Elsewhere NoPac proved to be lacking whilst Australia appeared flat all week, with an 81,000-dwt delivery Japan achieving $26,850 for a trip via EC Australia redelivery Japan. The FFA market hopped around all week, and period activity was thin overall. However, reports surfaced of an 82,000-dwt fixing $25,000 for 12 months.
Overall a more positive week for the sector, as more enquiry appeared from the Atlantic giving rise to stronger numbers being available in key areas whilst there remained strong demand from Asia. The BSI saw a week-on-week jump of 111 points, closing at 2,408. Period activity saw a 63,000-dwt open China fixing for five to seven months at a healthy $32,000. In the Atlantic, better numbers from the US Gulf saw a 58,000-dwt fixing a trip to China at $30,000. Elsewhere, a 55,000-dwt open Continent fixing a scrap run to the eastern Mediterranean at $26,000. In Asia, trips back to the Atlantic saw demand with Ultramax sizes seeing in excess of $30,000 to Mediterranean. Otherwise a 58,000-dwt open Taiwan was fixed for a nickel ore run via Philippines redelivery China at $32,000. From the Indian Ocean, a 60,000-dwt open Arabian Gulf was fixed for a trip to Bangladesh $40,000.
In a week which has seen both the Atlantic and Asia markets have limited activity, the BHSI has remained positive this week. Charterers continue to take tonnage in both basins for period, which suggests that some see a firm market for the foreseeable future. A 34,000-dwt open in the Sea of Marmara fixed four to six months with redelivery Atlantic at $19,500. In Asia a 34,000-dwt was fixed for four to six months with redelivery worldwide at $27,000. A 36,000-dwt Logs fitted vessel open in Vanino was fixed for about two to four months at $32,500. East Coast South America has seen more activity this week, a 36,000-dwt open in San Lorenzo fixed a trip to Peru at $34,250. In Asia a 32,000-dwt open in China fixed basis delivery DOP to the US West Coast at $27,000. In the Arabian Gulf a 37,000-dwt fixed a trip to East Coast India with fertilisers at $40,000.