Bulk report – Week 4
The Capesize market looked to have found a bottom by week’s close as rates descended throughout before bouncing back a little at the end. The 5TC weighted average opened the week at $7,390, descended to a low of $5,826 before settling at week’s end to $8,918. Both the Transpacific C10 and Brazil China C14 ballaster route priced below the index during the week both showed upticks to close at $6,963 and $8,023 respectively. The Transatlantic C8 continues to command a premium over the other regions yet was largely left unaffected over the week as the route closed at $11,325, up +125 compared to end of last week. West Australian miners were mildly active with fixtures over the last few days but were largely in the driving seat pushing down prices and providing meagre returns to owners as the C5 closed at $7.523. With the rates finding a floor, there is mixed views on whether there is any drive to lift rates from the doldrums. However, as Chinese New Year is about to begin many in the market will go quiet during this time so odds are stacked against any revival.
It proved to be another week of further considerable losses for the Panamax market, retracting back to values witnessed in Q2 2021. With countless ballasting and spot tonnage unfixed, resistance from owners was scarce as tonnage far outweighed demand. This resulted in charterers driving down bids - especially in the Atlantic region. Here, rates reduced close to $4,000 week-on-week on both P1A and P2A routes with little sign of abating. Several APS EC South America deliveries reported fixed for transatlantic rounds equating to the equivalent of $10/11,000 delivery DOP this side, with the quick Baltic round trips now fixing in the single digits. Asia fared marginally better as Indonesian coal appeared back on stream along with a fair level of Australia coal enquiry. With seemingly strong confidence for the rest of 2022, solid period interest appeared as the one bright spark this week. Several deals concluded including an 81,000-dwt delivery China achieving $23,500 for 5/7 months employment.
Supramax / Ultramax
Mixed fortunes for the sector over the last week as sentiment improved from Asia and the Indian Ocean regions. However, by contrast, the Atlantic lost ground. This did not deter period interest though. A 64,000-dwt open Continent fixing for one year at 116-116.5% of BSI including an option or redelivery Far East paying a bonus of $400,000. The Atlantic suffered losses with limited fresh enquiry from many areas. A Ultramax was heard fixing from East coast South America for a transatlantic run at around $23,000. Elsewhere, a 56,000-dwt fixed delivery Egypt trip US East Coast at $15,000. Stronger interest from the Indian Ocean. A 62,000-dwt fixing delivery Chittagong via South Africa redelivery Far East at $21,500. In Asia, A 56,000-dwt fixing a trip from Indonesia to India at $21,000 whilst another 56,000-dwt fixed delivery Singapore via Indonesia redelivery China at $18,500. With the Chinese New Year holidays upcoming, it remains to be seen if this momentum continues.
Further reductions this week on the BHSI with both Atlantic and Pacific basins continuing to make negative moves. In East Coast South America, numbers have tumbled with lack of enquiry and a 37,000-dwt fixing from Recalada to Tunisia at $21,500. A 32,000-dwt fixed from Recalada to West Africa at $25,000. In the US Gulf, pressure also remained with a 38,000-dwt fixing for a trip from the US Gulf to the Continent with an intended cargo of wood pellets at $16,000. From the Mediterranean, a 37,000-dwt was fixed for a trip from Damietta to East Coast South America at $13,000. From Asia, with the Chinese New Year closing in, activity has been limited. However, a 40,000-dwt newbuild fixed from Japan via Australia to China with an intended cargo of concentrates at $19,000. A 34,000-dwt open in Mongla fixed via East Coast India to South East Asia with an intended cargo of steels at $17,000.