Capesize rates face downturn

<3>Capesize

The drop was attributed to increased competition from older vessels and a pessimistic FFA market. Consequently, the C5 index declined by US$1.41 to reach US$13.125. This downward trend continued as the week progressed, with more pressure in the Pacific market due to a growing tonnage list and shortage of coal cargoes. The negative FFA market also exerted pressure from South Brazil and West Africa to the Far East, leading Charterers to swiftly lower their bids. Sentiment in the North Atlantic weakened for trans-Atlantic business, although the fronthaul market displayed resilience. A notable fixture was reported from East Coast Canada to the Far East, leading to a US$1813 increase in the C9 index, reaching US$58 688. Towards the end of the week, activity picked up in the Atlantic. Brokers reported that a major player had quietly entered the market and fixed a handful of vessels from South Brazil to China for the first half of April. Overall, it was been a turbulent week, with the BCI 5TC shifting direction daily, and ultimately closing down US$189 at US$33 332.

<3>Panamax

The Panamax market erupted into life with rates improving as a strong push from both South and North America led the drive. The period market remained robust, and a raft of deals were concluded at stronger levels, notably a new build 82 000 DWT delivery China achieving US$21 000 for one year’s employment. In the Atlantic, the week began on a firm note against a tight tonnage count in the North. With both strong mineral and grain-led demand, Charterers scrambled to hit the offers where owners were willing to stand still, US$31 500 rumoured fixed on an 81 000 DWT delivery North Spain for a trip via NC South America redelivery Far east seemingly the highlight. Midweek witnessed a binge of fixing from EC South America and this in turn gave additional support to the Asia market that, up until that point, had been relatively flat all week with limited with rates nudging up slightly on the week.

<3>Ultramax/supramax

A change in direction was seen as the recent positive momentum from Asia was seemingly being eroded with lower fresh enquiry and a slight build-up of prompt tonnage. However, the Atlantic side saw a slightly more positive feel return with more activity. More enquiry was seen from the South Atlantic and sources spoke of a tightening tonnage supply. From the Atlantic, a 61 000 DWT was heard to have fixed a trip from West Africa to China at US$28 000. Elsewhere a 63 000 DWT open Ghent fixed a scrap run to the East Mediterranean at US$17 000. From Asia, a 56 000 DWT open South China fixed a trip via Indonesia redelivery China in the mid US$13 000s. As the week came to close many felt that the Indian Ocean was picking up again, a 56 000 DWT open Arabian Gulf was heard to have fixed a trip to Chittagong in the mid US$18 000s.

<3>Handysize

A general feeling of positivity across the Atlantic saw levels make slow but steady gains, in the South Atlantic a 36 000 DWT in ballast from West Coast South America was rumoured to have been placed on subjects for a trip from Recalada to Morocco at US$19 000 with further improvements expected for Owners. In the US Gulf, more activity was seen with a 42 000 DWT rumoured to have been fixed from Panama City to the UK-Continent with wood pellets at US$11 000 whilst a 38 000 DWT fixed from NC South America to the Continent with an intended cargo of metcoke at US$12 000. More activity was also seen on the Continent with a 40 000 DWT fixing from Rouen to Vera Cruz at US$18 000. In the Mediterranean, a 34 000 DWT fixed from Otranto via the Eastern Mediterranean to the US Gulf at US$13 000. Activity in Asia has been muted, however, enquiry levels have been said to show signs of improvement and pockets of positivity have begun to emerge.

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