Baltic Exchange: Dry Bulk Report – 45

Capesize

The Capesize market experienced steady improvement this week, supported by robust demand and active trading in both the Atlantic and Pacific basins. Starting the week on a stable note, the BCI 5TC index rose gradually from US$15 332 on Monday to close at US$19 210 by Friday. In the Pacific, consistent activity from the miners and the operators, combined with weather-related delays, fuelled rate increases. The C5 index climbed from US$8.820 on Monday to settle at US$9.78 by Friday, as fixtures ranged from US$8.70 to US$9.80 later in the week. Meanwhile, the Atlantic basin also strengthened, especially from South Brazil, where a prominent miner’s demand helped lift the C3 index from US$20 380 on Monday to US$22 145 by weeks end. The North Atlantic markets saw significant support, with TA and fronthaul indices notably increasing, reflecting tight tonnage and an increase in volumes.

Panamax

With confined demand globally, it proved to be a challenging week for owners with a slow and steady erosion of rates in the Panamax market, culminating in the 5TC average losing further value. With limited action of note in the Atlantic, rates here came under the most pressure with charterers holding the upper hand, although delivery DOP was still evident several times for Transatlantic as tonnage count remained low. Fronthaul activity for mid-November arrival ex South America continued to be fixed basis APS&BB, US$14 000 + US$400 000 agreed on a couple of occasions, highlighting the negative market trend here. In Asia, decent specification 82 000 dwt types for trips via NoPac were able to achieve rates well into the US$11 000s during the early part of the week. However, with limited mineral trade, this had eroded down to rates in the US$10 000s as the week ended. Limited period activity but did include reports of an 82 000 dwt delivery China achieving US$16 900 basis 9/12 months.

Ultramax/Supramax

Another meagre week for the sector with very little encouragement from an owner’s perspective. The Atlantic continued to slide, as the South Atlantic, whilst seeing a reasonable amount of enquiry remained over supplied with tonnage, a 56 000 dwt fixing delivery Rio Grande trip to US East Coast in the low US$17 000s. From the North Atlantic little demand was seen. Again, rates remained under downward pressure. A Supramax was rumoured fixed from The US Gulf for a fronthaul at around US$18 000. The Continent-Mediterranean similarly lacked fresh impetus. As prompt tonnage availability remained healthy from the Asian arena, there was no end in sight to the downward trend, a Supramax open South Korea was heard to have been fixed for a NoPac round in the low US$10 000s. Limited enquiry further south saw a 63 000 dwt fixing from Indonesia to China at US$16 000. The Indian Ocean fared little better, a 63 000 dwt fixing a salt run from Kandla to China at US$12 000.

Handysize

It has been a challenging week for the sector, with rates in both the Atlantic and Pacific regions continuing to face downward pressure. In the Continent and Mediterranean, the overall sentiment remains stable, with fixtures emerging that suggest rates are holding steady at levels similar to the most recent deals. A 39 000 dwt open Amsterdam fixed for a trip via Murmansk to Brazil at US$13 000. In the U.S. Gulf and South Atlantic regions, sentiment remained soft in general with the increase in available tonnage and limited activity which has kept pressure on rates. A 39 000 dwt heard fixed delivery Houston 10/15 Nov for a trip to Egypt Med with grains at US$16 500. And a 37 000 dwt open Paranagua fixed delivery Recalada to South Africa with grains at US$17 000. The Pacific market also remained under pressure; rates were generally dipping below previous levels across the region. A 39 000 dwt open Fremantle 13 – 16 Nov fixed trip via Kwinana to Cigading with wheat at US$17 500. In the period market, a 38 000 dwt open Casablanca fixed for 4 – 6 months redelivery WW at US$13 750.

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