Bulk report – Week 47
The Capesize market was a mixed bag this week as routes ebbed and flowed giving little clear direction for traders. The market carried through positive sentiment from the prior week, yet was unable to sustain gains on the 5TC by midweek and bounced by close on Friday as the 5TC settled at $32,393, up $2455 week on week. Weather concerns earlier in the week disrupted tonnage schedules coming from North Asia, which put pressure on the routes in the region. The Pacific West Australia to China C5 closed the week at $12.164 while the Transpacific C10 settled at $31,598. The positive bump to close the week was led by strengthening in the Brazilian market to Asia as the C3 lifted $1.61 to settle at $27.785. The timecharter route Brazil-China C14 still lags the other regions as it closed out the week at $27,027. Further north, the Atlantic Basin had minimal change at the end of the week but has been the more constant region throughout. Still commanding a premium to the other regions the Transatlantic C8 settled at $37,950 on the back of minimal trading yet relative tight vessel supply in the region.
The Panamax market witnessed an impressive rebound this week gaining back the losses experienced last week. The market ended the week on a more solid footing. In the Atlantic, as much of the early tonnage was cleared away, this paved the way for improved levels as a decent amount of fresh demand came to the fore especially from the Americas. This in turn added pressure to some of the shorter duration trips. Close to $35,000 was achieved for a trip via Port Kamsar to Germany was the highlight. Kamsarmax tonnage with a delivery AG/WC India position were seen to be achieving in the region of $23,000 for trips via EC South America. Asia began the week on a slow burn with little action of note. However, by midweek some improved support saw rates perk into life - particularly from NoPac. An 87,000-dwt delivery Japan achieving $22,000 for a trip via NoPac redelivery Singapore-Japan.
Sentiment changed direction after last week’s falls, albeit slightly tempered, as brokers said better levels and activity levels were seen from Asia. Whilst demand returned from the US Gulf in the Atlantic, other areas remained subdued. Period activity was limited but a 56,000-dwt open Arabian Gulf was fixed for five to seven months trading at $22,000. From the Atlantic, a 63,000-dwt was heard fixed from the US Gulf for a transatlantic run in the low $40,000s. A 63,000-dwt was heard fixed for a scrap run from the Continent to the East Mediterranean at around $41,000. There was better activity from Asia with more enquiry from Indonesia. An ultramax open Philippines fixing a trip via Indonesia redelivery Bangladesh at $27,000. Nickel ore runs saw a 57,000-dwt fixing delivery South China via Philippines redelivery China in the very low $20,000s. From the Indian Ocean, a 63,000-dwt was heard fixed delivery South Africa trip redelivery Pakistan at $25,000 plus $480,000 ballast bonus.
The continuous drop of the BHSI ended this week with the resurgent Asia Markets turning the tide. Despite a holiday in Japan, we have seen more activity with a 38,000-dwt rumoured to have been fixed for a trip from Japan to the Continent at $20,000. A 38,000-dwt open in South Korea fixed a trip to the US Gulf with an intended cargo of steels at around $19,000. A 35,000-dwt open in Vanino was fixed for a trip via Vancouver back to China at $19,000. East Coast South America remained positive with a 34,000-dwt fixed from West Africa via the River Plate back to Abidjan at $30,500. A 37,000-dwt fixed from the Mississippi River to Morocco with an intended cargo of grains at $27,750. A 34,000-dwt open in Turkey was fixed for a trip to the US Gulf at 28,000. A 36,000-dwt open Cristobal fixed for three to five months with Atlantic Redelivery at $27,000.