Bulk report – Week 34
The Capesize market is going through a rough period as trading pushed valuations into untenable sub-operating expense territory over the week. The Capesize 5TC dropped -$2,854 week on week to finish at $3,413. With rates so low and the outlook remaining poor, there is some speculation as to how far the sector will, and can, go. The Atlantic Basin has fallen dramatically from grace as the transatlantic C8 hovered at $3,111 as scrubber-fitted vessels were heard to be particularly aggressive in the region on the little cargo availability. In the Pacific, the West Australia to China C5 settled at $7.625 to end the week as iron ore demand from China continued to ebb. It remains to be seen what the upcoming week holds in store for the sector.
The North Atlantic made a large correction over the week, with limited enquiry said to be an ongoing issue. A 82,000-dwt was fixed from Las Palmas via North Coast South America to Singapore-Japan at around $19,000. A 80,000-dwt, meanwhile, was rumoured to have been fixed for a trip from Gibraltar via North Coast South America to the Continent at around $8,000. East Coast South America also lacked impetus. A 84,000-dwt fixing for early September delivery for a trip to Singapore-Japan at $16,400, plus a ballast bonus of $640,000. A 82,000-dwt was fixed from Paranagua for a transatlantic run at $20,000. The Pacific also weakened. A 82,000-dwt fixed from Ulsan for a North Pacific round at $16,000, whilst a 77,000-dwt open in Nantong also fixed a similar trip at $11,000. There was limited fresh enquiry further south. A 75,000-dwt fixing delivery Basuo via Indonesia redelivery North China at $18,000.
It was mixed fortunes for the sector over the week. The general tone from the Atlantic remained slow, but the Asian arena did make gains in the first part of the week. However, as the week closed some felt the positive undertones were lacking. Period activity was seen and a 58,000-dwt open Japan fixing 11/13 months trading redelivery worldwide at $18,000. From the Atlantic, it was limited activity from East Coast South America. However, a 55,000-dwt fixed delivery Nouakchott trip via Santos redelivery Algeria at $20,500. Elsewhere, rates struggled. A 55,000-dwt fixing a scrap run from the Continent to the East Mediterranean at $16,000. Asia remained relatively active in the south. A 64,000-dwt fixed delivery Gresik for a trip via Kalimantan redelivery WC India at $28,000. Demand was patchy further north. A 56,000-dwt fixed delivery Kunsan trip redelivery Mediterranean at $19,500. For transpacific business a 61,000-dwt fixed delivery Japan via North Pacific redelivery South East Asia at $21,850.
Negative sentiment dominated the sector as limited activity appeared across all regions. East Coast South America has seen rates drop further as fresh almost stalled for the remainder of August and early September. A 40,000-dwt was fixed for a trip from Recalada to West Coast South America at $29,000 and 38,000-dwt was fixed from Itaguai to Pecem with steels in the low $20,000s. Elsewhere, a 38,000-dwt open in Boston was fixed via Venezuela to Turkey at around $15,000. A 35,000-dwt open in the Baltic Sea was fixed from Finland to the Eastern Mediterranean at $13,000. There was limited action from Asia, but period interest remained. A 28,000-dwt open in South China fixed for three to five months at $18,000 for August dates and a 28,000-dwt open in CJK fixed for three to five months at $19,600 for early September delivery.