Baltic Exchange: Dry Bulk Report – 50

Capesize

The Capesize market faced a difficult week, marked by steady declines and a lack of support across both the Pacific and Atlantic basins. The BCI 5TC began on a subdued note at US$12 702 but saw consistent downward pressure, plummeting to US$10 474 by Friday, a loss of over US$2 200 across the week. In the Pacific, an initial rise in cargo volumes failed to sustain any momentum as the growing tonnage list and subdued demand weighed heavily on rates. Limited activity from key miners exacerbated the pressure on earnings. The C5 index started the week at US$7.42 but dropped to US$6.990 by weeks end. Meanwhile, the Atlantic offered little relief. Despite increased January cargo availability from the South Brazil and West Africa to China markets, Brazilian iron ore exports slowed, and an oversupply of vessels kept rates under pressure. The C3 index fell from US$17.56 on Monday to US$16.230 by weeks end. Fronthaul activity from East Coast Canada added to the bearish tone, with significant discounted fixtures reported.

Panamax

A continuation of the previous week played out with a stable opening to the week for rates in the Atlantic. Trans-Atlantic demand remained the main driver here, whilst fronthaul interest remained lacklustre all week. An 81 000 dwt delivery Skaw achieved US$10 000 for a trip via US Gulf and Egypt, redelivery Gibraltar earlier part of the week, however this was deemed closer to US$9 000 as we close highlighting the slow decline. Asia struggled to get going this week with pressure mounting from the very start as the tonnage count grew. This was pitched against a sparse looking demand book and rates drifted consequently, US$7 000 rumoured fixed on an 81 000 dwt delivery China for a NoPac round. Despite the gloom in Asia, there was plenty of period discussion, and despite the lower levels to previous, numerous reports of deals concluded including an 81 000 dwt delivery China fixed basis 9/12 months at US$7 300 for the first 40 days and balance thereafter at US$11 750.

Ultramax/Supramax

With the looming widespread festive period arriving, the Atlantic remained a rather positional affair during the week. The North Atlantic continued a rather subdued trend. A 64 000 dwt fixing delivery US Gulf for a pet-coke run to India at US$23 000. Whilst a 63 000 dwt fixed a trip from the US Gulf to North Brazil at US$18 500. The Mediterranean-Continent struggled to impress with limited fresh enquiry appearing. A 58 000 dwt fixing delivery Hamburg for a trip to South Brazil at US$9,250 option North Brazil at US$9 700 for the first 45 days and balance US$14 000. The South Atlantic saw limited action and remained finely balanced. Further losses were seen in the Asian arena as sentiment remained low. A 63 000 dwt open CJK fixed a NoPac round at US$12 000. Further south, a 55 000 dwt fixed delivery Singapore trip via Indonesia redelivery China in the low US$10 000s. A fairly good amount for demand from the Indian Ocean, although again rates remained rather subdued. A 57 000 dwt fixing delivery Richards Bay trip to Pakistan at US$15 000 plus US$150 000 ballast bonus. Period activity lacked much interest, a 58 000 dwt open Mumbai fixing 3/5 months trading in the low US$10 000s.

Handysize

The market saw limited visible activity across both basins this week. In the Continent and Mediterranean regions, the Continent appeared softer due to lack of fresh scrap orders and Russian demand while the Mediterranean side was relatively stable. A 37 000 dwt fixed delivery Brunsbüttel trip via Poland to Conakry at US$11 300. In the U.S. Gulf, the market remains very slow, with very little fixing activity being recorded, charterers have been bidding lower than the previously agreed levels. A 38 000 dwt fixed for delivery U.S. Gulf to redelivery Morocco at US$12 000. Meanwhile, the South Atlantic appeared more balanced with market sentiment remaining generally stable. A 34 000 heard fixed delivery Recalada redelivery West Africa at US$16 000. In Asia, the tonnage count has been increasing throughout the week, leading to downward pressure on rates and some brokers anticipating further market softening. A 28 000 dwt heard fixed delivery Japan redelivery Southeast Asia at US$8 000.

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