Bulk report – Week 38
The market continued to lurch its way upward as rates strengthened in flurries with numerous drawdowns along the way. The 5TC closed the week at $18,293 with strong positive sentiment remaining. The Atlantic had several fixtures out of Eastern Canada that shocked the fronthaul market into life early on in the week. However, it was at odds with fixtures out of Brazil and West Africa to China that seemed capable of dragging the values lower at ease. The dynamic led to opaque pricing visibility and indecision of market direction. The Transatlantic C8 closed the week up $6,500 to $18,917 drawing close to parity for value against the Transpacific C10 at $19,295. The Pacific market had much more clarity in pricing but was no less volatile as charterers were seen paying up as often as pressuring rates lower. The West Australia to China C5 now priced at $10.24. Fixture activity remains reasonable if not still quite underwhelming for this time of the year. Weather continues to play a disrupting factor for vessel schedules in the region as Japan began its clean up from Typhoon Nanmadol.
It was a similar week to the previous for the market. It began brightly, only for owners to be pegged back midweek with several deals fixing and failing and a mixed finish to end. A distinct lack of mineral requirements in the North Atlantic weighed down all week in the north. However, with steady demand ex ECSA - and many of the ballasters now covered - ships open west Mediterranean were being priced competitively both for the Transatlantic and front haul grain trips. $24/24,500 concluded ex West Mediterranean via NC South America trip Far East. Asia was predominantly focused on the North this week with a stable looking North Pacific programme. Some strong numbers were concluded earlier in the week with $21,500 on an 82,000-dwt delivery Korea via North Pacific. This was as the back end of the typhoon impacted with minor delays encountered. However, the market ended slowly as the week closed with pressure easing.
Generally a positive week across the board with gains made both in the Atlantic and Asian regions. However, some described the Indian Ocean as remaining finely balanced. Period activity was seen and a 63,000-dwt coming open ex drydock China fixed for one year’s trading at $16,500. The Atlantic saw stronger demand from the US Gulf, with Ultramax size seeing $26,000-$27,000 for runs to Asia. After a rather slow few weeks, activity levels increased from the Continent/Mediterranean areas. A 55,000-dwt open Hamburg fixed a scrap run to the East Mediterranean at $15,000. From South America, as the week closed, the was some better demand. Asia saw increased demand at the beginning of the week although this tapered off towards the end. A 61,000-dwt open China fixing a North Pacific round in the mid $18,000s. Meanwhile, a 61,000-dwt fixed delivery North China redelivery Southeast Asia at around $17,000. Further south, demand from Indonesia was seen. A 63,000-dwt open Belawan fixed a trip via Indonesia to China at $22,000.
In a week of positivity across both basins, the biggest highlights came from East Coast South America, where brokers spoke of continued fresh enquiry and limited tonnage. A 38,000-dwt was fixed from South Brazil to Spain at $25,000 and a large handy was rumoured to have been fixed from Recalada to the Western Mediterranean at around $27,000. A 33,000-dwt was fixed from Santos to Morocco at $23,500 earlier in the week. In the US Gulf, brokers spoke of more activity with a 40,000-dwt rumoured to have fixed from SW Pass to the Eastern Mediterranean at close to $20,000. From Asia, sources said that with the upcoming holiday’s charterers had been looking to take cover early seeing improved activity in the region. A 32,000-dwt open in Melbourne fixed two laden legs at around $19,000 with a ballast bonus of about $190,000. Meanwhile, a 38,000-dwt was fixed from Adelaide to China at $17,000 plus a ballast bonus of $100,000.