Bulk report – Week 41
The Capesize market softened this week as a lack of fresh cargo and activity, particularly in the Atlantic hampered, efforts to push higher. The Capesize 5TC lowered 1909 over the week to settle at $17,965. A small uptick in sentiment to end the week may be a sign of resistance by owners to not allow rates to fall lower. The Pacific market had a flurry of West Australia to China fixtures at the close, which pushed the Transatlantic C10 up to $13,318, while the Transatlantic C8 still provides a healthy premium now pricing at $25,139. Brazilian trade activity to the Far East was an area that looks likely to continue softening. The C3 dropped 1.434 over the week to $23.233 with earnings on the route pricing slightly lower than the Pacific and North Atlantic. Some owners considering a last long-haul ballasting trip before the year ends will be met with limited options in what has been a largely disappointing final quarter to date.
The week began on a muted note for Panamax vessels. Draft issues in the US Gulf, as well as talk of a slowing Ukrainian Black Sea program, impacted the north Atlantic. Meanwhile, in Asia, it proved to be a largely flat week. NoPac was perhaps the exception with a steady flow. As the week progressed, the Atlantic saw tonnage slowly build up in most areas. Without any distinct enquiry rates it had to give - and duly obliged. $19,000 concluded on an 82,00-dwt delivery North Spain for a Transatlantic round early part, but had softened since. Asia followed a similar pattern. The south of the region saw a steady flow of Indonesia enquiry, but matched by an ample tonnage count. NoPac was active but insufficient Australia demand proved ultimately to be the catalyst for further corrections in the market. An 86,000-dwt delivery China fixed at $18,000 for an Australia round, which typified the weaker market.
Despite the return to work for many in Asia, the arena failed to gain any positive momentum, with many seeing a lack of fresh enquiry from most areas and a build up of prompt tonnage. However, the Atlantic saw better levels of interest and rates remained positive overall. Period activity surfaced and a 60,000-dwt open China fixed four to six months trading in the low $18,000s. Meanwhile, for a year’s trading a 60,000-dwt open Singapore was fixed in the upper $16,000s / $low $17,000s region. From the Mediterranean an Ultramax was heard to have been fixed for a trip to West Africa in the upper $20,000s. From the US Gulf a 62,000-dwt fixed for a trip to West Coast Central America in the low $30,000s. From Asia, there was limited action. However, a 62,000-dwt open Japan fixed a trip to the US Gulf at $16,000. From the Indian Ocean a 58,000-dwt fixed delivery West Coast India trip to China in the low $16,000s.
Despite BHSI making negative moves this week, part of the Atlantic showed a positive trend with a 43,000-dwt fixing from the Black Sea to the Continent at $23,000. Meanwhile, a 37,000-dwt was rumoured to have been fixed for a trip from the US Gulf to Spain with an intended cargo of Petcoke at $23,500. In East Coast South America, brokers spoke of a stable market and a 39,000-dwt was fixed from Barcarana to the Caribbean with an intended cargo of grains at $26,000. In Asia, numbers had softened with a 36,00-dwt open in CJK being placed on subjects for a trip via Australia to Japan with an intended cargo of sugar at $13,500. Period has seen more enquiry and a 30,000-dwt open in the Eastern Mediterranean was fixed for 12 months with worldwide redelivery at $13,750. A 36,000-dwt open ex-drydock was fixed for three to five months at $18,000.