Dry Bulk market completes another week of correction

Capesize

Despite a setback due to alleviated port delays, the Pacific rebounded with the closure of three more ports in North China and continued major player activity, resulting in a positive shift in C5 rates. In contrast, the Atlantic faced challenges with sluggish activity, widening bid/offer gaps, and weaker fixtures from South Brazil and West Africa to the Far East. Overall, the BCI 5TC closed the week at US$34 107, reflecting the market's regional fluctuations and ongoing uncertainties.

Panamax

The beginning of the week saw a slight correction across most areas with a good amount of fresh tonnage and limited enquiry seeing rates slip further. The North Atlantic lacked fresh impetus, although there remained demand from the South Atlantic and some saw a tightness of tonnage supply for January dates, which helped maintain a fairly even level. An 80 000 DWT open India fixed a trip via EC South America for a trip to Singapore – Japan at US$14 000, while an 81 000 DWT fixed a front haul basis delivery Gibraltar trip via US Gulf redelivery Singapore-Japan at US$29 000. From Asia, little excitement as limited fresh enquiry from Indonesia and NoPac came into play. A 74 000 DWT open China fixed a trip via Indonesia redelivery Japan at US$15 000. Period action was limited, although an 82 000 DWT open Singapore fixed 6/8 months trading redelivery worldwide at US$17 000.

Ultramax/supramax

A rather positional week ensued for the sector, but overall sentiment remained rather poor. In the Atlantic, slower demand from key areas such as the US Gulf saw rates slip from the recent highs while in the South Americas, a relatively tight tonnage supply saw rates maintain their levels. From Asia, little fresh enquiry appeared in the north and NoPac regions, which saw some tonnage ballast towards South Asia where cargo enquiry remained steady, but rates generally remained flat. Period activity slowed, with a 61 000 DWT coming open worldwide in February-March 2024 was heard fixed for 13 - 16 months trading at 120% of BSI. In the Atlantic, a 63 500 DWT was heard fixed delivery West Africa for a trip to China at US$32 000 with nickel ore. From Asia, a 63 000 DWT open China fixed an Australian round redelivery Singapore-Japan at US$12 000. From the Indian Ocean, a 63 000 DWT fixed delivery South Africa for a trip to India-Bangladesh at US$23 000 plus US$250 000 ballast bonus.

Handysize

A week of positivity across the Atlantic with continued limited tonnage availability the main driving force. Late improvements were seen for owners on the Continent, with a 38 000 DWT opening prompt in Rotterdam fixing for a trip to the Eastern Mediterranean with an intended cargo of scrap at US$27 000. The US Gulf similarly saw further improvements this week with a 39 000 DWT fixing from Panama City to the UK-Continent with an intended cargo of wood pellets at US$30 000. Prompt vessels in the South Atlantic were in high demand and brokers spoke of more voyage requirements for Far East and WC South America destinations, with a 37 000 DWT opening in Praia Mole was fixed for a trip basis delivery Recalada to WC South America with an intended cargo of grains at US$45 000 to a grain house. In Asia, the market was more subdued in terms of visible activity and levels remained stable, with a 43 000 DWT fixed from Indonesia to China with coal in the mid US$13 000s.

Read the article online at: https://www.drybulkmagazine.com/shipping/18122023/dry-bulk-shipping-market-sees-fluctuations/