The Baltic Exchange provides an update on the Dry Bulk markets for Week 46. Information originally sourced from the Baltic Exchange.
Capesize
The Capesize market showed a strong overall performance this week, with the Baltic 5TC gaining momentum and rising significantly from Monday's USUS$20 872 to end the week at US$26 777. Early week enthusiasm in the Pacific came from high activity levels on C5, with miners securing fixtures at improving rates, peaking at US$10.60 – US$10.75 levels by weeks end. This was helped by an increase in operator activity. The South Brazil and West Africa to China markets also saw considerable rate increases as offers hovered around US$25.00 basis C3, with fixtures holding in the US$24.00 range for December dates mid-week, before pushing up to US$26.00 as the week draws to a close. In the North Atlantic, the Transatlantic and fronthaul routes saw activity pick up, supporting a sharp hike in rates by mid-week, and ending the week at US$26 943 (C8) and US$47 200 (C9) respectively.
Panamax
The week returned a strange feel for the Panamax market. Underlying factors in the North Atlantic suggested the gains seen would be more significant but failed to materialise as much as anticipated by some. Elsewhere, rates mostly ticked up on the back of reasonable demand versus a balanced tonnage count. Much of the better numbers for Transatlantic were said to be longer than index duration trips to the East Mediterranean, US$11 000 being agreed on an 75 000 dwt delivery France for a trip via US Gulf to Egypt with redelivery Cape Passero. Asia returned a mixed bag, steady activity in the North, with sound grain demand ex NoPac, whilst the South appeared slightly slower, with the headline being an 82 000 dwt delivery Japan achieving US$14 750 for a NoPac round trip redelivery Singapore-Japan. An uptick in period activity this week with reports emerging of a scrubber fitted 82 000 dwt delivery China achieving US$15 000 basis 2 years trading.
Ultramax/Supramax
An interesting week, with many describing the market as positional, as owners’ opportunities and expectations are largely shaped by where their vessels are open. In the Atlantic, results were mixed: while the US Gulf remained relatively subdued, the Continent saw a bit more optimism, driven by stronger demand. A 60 000 dwt fixing from the North Continent to the East Mediterranean at US$19 750. However, demand from the West Mediterranean was tempered by the volume of vessels open in the east Mediterranean, a 61 000 dwt fixing from Port Said to West Africa at US$11 500. EC South America remained patchy, a 61 000 dwt fixing from Recalada to the UK-Continent at US$17 000. From Asia, however it remained rather poor, a 58 000 dwt fixing delivery Pusan for a NoPac round redelivery SE Asia at US$9000. Further south, limited demand from Indonesia saw a 63 000 dwt open Indonesia fixing a trip to China in the mid US$13 000s. The Indian Ocean, whilst demand remained again rates remained rather underwhelmed, a 56 000 dwt fixing delivery Richards Bay for a trip to India at US$12 750 plus US$127 5000 ballast bonus.
Handysize
Another challenging week for the sector as sentiment remained poor both in the Atlantic and Pacific arenas. In the Continent and Mediterranean market, sentiment remained largely positional, with minimal activity recorded. The rates held rather steady, hovering around previous levels. A 39 000 dwt open Teesport prompt heard fixed delivery passing Skaw trip via Baltic redelivery East Mediterranean with scrap at US$15 000. The overall tone in both the US Gulf and South Atlantic markets remained negative, driven by ongoing increase in available tonnage, which has exerted downward pressure on freight rates. In the US Gulf, a 32 000 dwt heard fixed delivery Houston for a trip redelivery Algeria with grains US$11 000. In the South Atlantic, a 36 000 dwt open Venezuela 18/21 Nov were fixed delivery dop via Atl. Colombia to Denmark with coal at US$11 000. The Pacific market also had another quiet week with limited fixing activity reported, the tonnage list appearing relatively longer and the cargo book sees little to no change. A 37 000 dwt open Singapore 6th Nov fixed delivery Singapore redelivery PG at US$13 000 and a 28 000 dwt heard fixed delivery South Philippines via SE Asia to Far East at US$8000.
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