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Dry bulk shipping market continues to see sustained decline

Published by , Editorial Assistant
Dry Bulk,

The capesize market concluded the week on a relatively sombre note. The Pacific market struggled with limited participation from miners throughout the week, resulting in declining rates driven by tonnage build-up and an overall shortage of coal enquiry.


The Atlantic market faced a slow start, with notable bid reductions from charterers, leading to a widening bid-offer spread and fewer fixtures being concluded. However, there were indications of increased activity from South Brazil and West Africa to the Far East, suggesting a potential attempt to find a market equilibrium. Furthermore, the North Atlantic market exhibited signs of stabilisation after experiencing substantial downturns. This resulted in market conditions remaining somewhat subdued, reflecting the impact of growing tonnage against a backdrop of diminishing cargo availability. The BCI 5TC commenced the week at US$29 851 but experienced notable losses, concluding week two at US$18 015.


The decline in the Panamax market showed no signs of abating this week, with further substantial corrections in both basins. In the Atlantic, a distinct lack of mineral demand in the North, as well as a build-up of tonnage count, weighed heavily on the very few deals to be reported this week. Limited talk midweek of a floor being found from EC South America appeared premature, with charterers still able to pick off the ample ballasters, dependent on the arrival window, the customary rate variance played out but generally the P6 route averaged out to around $13,500 and $13,750 levels. Asia also remained downcast, with Indonesian coal exports continuing to be an issue and, despite some minor support ex NoPac and Australia, this did little to impact an ever-growing tonnage count with limited options. Mixed rates on period throughout the week, the highlight being an 82,000-dwt delivery China achieving $14,350 for one year.


The inauspicious start to the new year continued throughout week two with little for owners to get excited about. In the Atlantic, activity appeared softer in most key areas with a healthy tonnage supply more than keeping up with demand. Brokers spoke of very little requirement from the South Atlantic for trans-Atlantic runs. From the Asian arena, some described the week as positional. With a reasonable number of fresh requirements both from the NoPac and Australia, limited fresh enquiry further south saw rates remain in check for the most part. Activity from the Atlantic included a 63 000 DWT fixing a trip delivery from the east coast of North America for redelivery to the East Mediterranean at US$24 000. Elsewhere, a 58 000 DWT was fixed for delivery from North Continent for a scrap run to East Mediterranean in the mid US$16 000s. From Asia, a 63 000 DWT open North China for heard fixed for a NoPac round voyage redelivery west coast India at US$12 750. From the south, a 55 000 DWT open South China was fixed for a trip via Vietnam redelivery Bangladesh at US$9 000.


Continued negativity was seen across the handy sector, with limited cargo availability and growing tonnage lists continuing. In the Mediterranean, a 28 000 DWT was fixed from Arzew to Florida with bagged cement at US$7500 whilst a 40 000 DWT was rumoured to have fixed for from Algeria to US Gulf at US$9000. The South Atlantic also saw levels fall, with a 36 000 DWT fixing from Santos to Morocco with a cargo of sugar in the mid-teens whilst a 36 000 DWT was said to have been fixed from Rio Grande to west coast Central America at US$23 000. With similar market conditions in the US Gulf, sentiment remained negative. Southeast Asia also experienced a lack of fresh enquiry as a 38 000 DWT fixed from Singapore via Western Australia to China with alumina at US$8400. Further north, a 34 000 DWT opening in CJK fixed a trip to Southeast Asia at US$8000. Period interest was still evident with a 28 000 DWT in Cigading fixing for 4 - 6 months at US$9250.

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