The Baltic Exchange provides an update on the Dry Bulk markets for Week 42. Information originally sourced from the Baltic Exchange.
Capesize
This week began with optimism, particularly in the Pacific, which saw early strength, buoyed by improved demand from miners and fresh coal cargoes. However, the momentum quickly reversed as the week progressed, and by midweek, market sentiment was bleak. The C5 route rates dropped from US$10.25 to end the week at US$8.965. The South Brazil and West Africa to China routes similarly softened, with a widening gap between bids and offers and C3 rates correcting downward from the low US$25s to US$22.1 by weeks end. The North Atlantic felt mixed throughout with some transatlantic activity, but overall softening with fronthaul rates dropping substantially from US$48 206 to US$41 094. Overall, the BCI 5TC had lost $4997 over the week, closing at US$18 875, reflecting the accelerating market decline.
Panamax
A lethargic week for the Panamax market saw a brief rally in trans-Atlantic activity towards the end, but otherwise, there was minimal action on fronthaul trips from both the South and North, leading to a slow drift in rates. An 82 000 dwt delivery Continent secured US$18 000 for a trip via the US East Coast redelivery India with coal, but activity was otherwise muted. The Pacific market also remained sluggish, with disappointing demand out of NoPac and Australia failing to support rates. Over the course of the week, numbers for longer runs drifted lower, as seen when an 82 000 dwt delivery China fixed at US$11 400 for an EC Australian round trip on Friday, down from US$14 000 for the same run and vessel type on Tuesday. This illustrates the gradual decline in rates. With limited support from the FFA market, period activity was unsurprisingly restricted, though there were reports of a 76 000 dwt delivery China fixing at US$14 200 for one-year employment.
Ultramax/Supramax
Two sides of a coin this week for the sector as the Atlantic generally saw upward momentum whilst the Asian arena lost ground. The high point from the Atlantic remained the US Gulf which saw stronger numbers being achieved predominately for trans-Atlantic runs, although fronthaul gained a little. An Ultramax was heard fixed for a trip to the East Mediterranean in the mid US$26 000s and for fronthaul runs a 63 000 dwt fixed around US$24 000. The South Atlantic remained finely balanced, although there seemed to be a bit of demand from North Coast South America, a 63 000 fixing a trip from North Brazil to the Mediterranean at US$21 000. By contrast, the Pacific lacked fresh impetus and tonnage availability grow. A 56 000 dwt fixing delivery Vietnam for a round voyage via Indonesia at US$14 000. Also, a 63 000 dwt open Indonesia fixed a trip via Australia redelivery Arabian Gulf at US$18 000. Demand remained from the Indian, with Ultramax sizes seeing US$20 000 plus US$200 000 ballast bonus for trip from South Africa to India.
Handysize
Generally, the market has seen a mixed performance this week. In the Continent and Mediterranean, limited information emerged and rates remained generally stable around recent levels. A 37 000 dwt open in Skikda was fixed for a trip to North France with clinker at US$12 000. In contrast, the South Atlantic and US Gulf markets showed strong fundamentals and positive sentiment driven by robust demand for October dates and tight tonnage availability. A 37 000 dwt open in Praia Mole secured a trip to the Caribbean, intention Rio Haina at US$16 000. Additionally, a 36 000 dwt was fixed for a trip from SWP to NCSA at US$13 500. In Asia, the market showed signs of softening, however sentiment remains optimistic supported by healthy cargo volumes and a decent clearing of prompt vessels. A 37 000 dwt vessel was fixed for delivery from Hong Kong (12 – 15 Oct) for a trip via Vietnam to Singapore with cement at US$12 750. On the period side, a 32 000 dwt vessel open in Chittagong was fixed for 4 to 6 months at US$12 850.
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