Bulk report – Week 35
The Capesize market crested over the past week as the 5TC retracted $4452 since last Friday to close out at $46,647. The north Atlantic basin, largely inactive over the past several months, has surged since mid-August settling today at $52,099 on the Transatlantic C8 and $79,600 on the Fronthaul C9. The fronthaul route has been particularly volatile with large swings between days for tonnage taking cargo back to the far east. Further south the Brazilian market to China eased throughout the week, now largely on par with value for tonnage in the Pacific basin. The voyage route Brazil to China C3 reduced 2.605 to close at $33.165.
In the Pacific the market was active with numerous coal and iron ore perspectives, yet the West Australia to China C5 lowered 1.282 to $13.668 as ample tonnage options were heard in the region. While the Capesize market retraced its steps slightly this week earnings overall remain robust and healthy for owners as we sail into the traditional high earning season for the sector.
The Panamax market saw substantial corrections this week, particularly in the Atlantic as pressure was applied all week with a basic lack of demand especially for the Transatlantic trades. Conversely, Asia witnessed strong cargo volumes from all three major origins Australia/NoPac/Indonesia which proceeded to keep rates well balanced. However, nervousness both from the Atlantic physical and FFA market appeared to impact the basin here too as we approached the weekend. An 82,000-dwt delivery Thailand was reported to have agreed a rate of $35,500 for a trip via EC South America redelivery Far east, otherwise limited trades were reported from South America.
In the Pacific, an 82,000-dwt delivery China fetched $37,000 for a trip via NoPac redelivery Singapore-Japan range, whilst an 82,000-dwt delivery Philippines agree a rate of $37,000 for a trip via Indonesia redelivery China. Period activity was scarce but did include reports of an 82,000-dwt achieving $27,000 for roughly 10-12 months employment.
A week of falls across most routes led to the BSI closing at 3,348, a drop of 122 week-on-week. With Hurricane IDA the US Gulf lost momentum as cargo supply eased, whilst from South America fresh enquiry was limited. From Asia, an easing of congestion from China saw tonnage availability increase, giving charterers greater flexibility. Overall, period activity was limited, with a 63,000-dwt open south China fixing four to six months trading at $41,000. From the Atlantic a 58,000-dwt was heard fixed delivery east coast South America trip to Bangladesh at $25,000 plus $1.475,000 ballast bonus. Further north, a 63,000-dwt was fixed for a trip from north coast South America to India at $49,000. From Asia, a 63,000-dwt open Cebu was fixed for a trip to east coast India-Bangladesh at $43,000. For Pacific round voyages a 63,000-dwt open South Korea was failed for trip via Australia redelivery Singapore-Japan at $40,000.
In contrast to last week BHSI lost ground overall as areas such as the US Gulf and east coast South America saw rates ease as demand fell. Similarly, from the Asian arena rates eased with limited fresh enquiry coming into the market, leading to a larger amount of prompt tonnage. Limited period activity was seen, but a 33,000-dwt was recently fixed from north coast South America for three years trading at $17,000. A 33,000-dwt open Algeria was also heard to have fixed five to seven months trading redelivery Atlantic at around $34,500.
From the US Gulf pressure eased a 38,000-dwt fixing at around $22,000 for a trip to the Continent. From the east Mediterranean a 32,000-dwt was fixed delivery Canakkale for a trip to west Africa at $42,000. From Asia limited activity was heard as brokers said cargo activity dropped off with owners looking to the upcoming week to see if this trend would change direction.