Dry bulk shipping market update

Capesize

Conditions were notably calm from South Brazil and West Africa to the Far East at the early part of the week, leading to a noticeable disparity between the bid and offer prices on C3. By mid-week it was a mixed market, the overall sentiment leaned towards a slight softening in the Pacific. Activity in the Atlantic picked up as the week progressed, tonnage in the North Atlantic region had been tight, resulting in a robust fixture from East Coast Canada to the Far East which led to a noticeable uptick in the C9 index. Conditions in South Brazil and West Africa started to stabilise towards the end of the week, with reports of a major fixing at US$24.00, from Tubarao to China resulting in C3 index settling at US$24.27 on the day. Towards the end of the week, there has been a decline in overall activity. However, in the Pacific, owners displayed resistance, a move that seems to have been rewarded as the C5 index increased by US$0.65, reaching US$9.70 to end on a positive note.

Panamax

An energetic week with EC South America claiming the headlines with activity stepping up for March arrivals. Index type tonnage fixing at around US$16 000 - US$16 500 was achieved several times basis delivery India via EC South America redelivery Singapore-Japan whilst the scrubber fitted fleet commanded premium levels. By comparison demand was slow in the north with many of the ballasters continuing to price competitively for NC South America grain business. In large parts of Asia, it was a shortened week which created a little confusion, however sentiment returned firm with all three major loading origins returning small increments in rates. This was aided by staunch support from the Americas and a robust period time charter market. A mix of rates seen for trips via NoPac including reports of a 75 000 DWT delivery Japan for a NoPac round trip at US$11 750. Various period rumours including an 82 000 DWT delivery South China fixing basis one year at US$18 250.

Ultramax/supramax

A rather protracted week with the Asian arena lacking fresh impetus during the first part dominated by the Chinese New Year holidays. Having said that the week ended with stronger demand and rates were being seen from the region. The Atlantic similarly had a rather positional feel about it. The recent gains made from key areas such as the US Gulf being driven back with limited fresh enquiry as the weekend approached. Period cover remained in play, a 63 000 DWT open China fixing one year at US$16 500, whilst another 63 000 DWT open Arabian Gulf fixed five to seven months trading at around US$17 000. From the Atlantic, a 64 000 DWT was fixed from the US Gulf to Asia at US$30 500. A 61 000 DWT fixed from Spain to the US East Coast in the upper US$10 000s. The Indian Ocean remained active, with a 58 000 DWT fixing from Karachi to South Asia in the mid US$20 000s. From South Africa, a 63 000 DWT fixed for a trip to China at US$24 000 plus a US$240 000 ballast bonus.

Handysize

Despite limited visible activity across the handy sector, pockets of positivity remained. On the Continent improving levels of scrap and lumber requirements brought gains for Owners, a 30 000 DWT semi-open hatch box-shaped vessel fixing from Riga to Houston with a cargo of lumber at around US$11 000, whilst a 39 000 DWT was fixed from Flushing to West Africa at US$13 000. Levels In the Mediterranean remained balanced, as a 35 000 DWT fixed from Alexandria to the Spanish Mediterranean at US$12 000. With Carnival in Brazil activity was minimal and improvements were expected next week. The US Gulf remained under pressure with limited cargo availability for the remainder of February, a 38 000 DWT was fixed from the US Gulf for a trip to Morocco with an intended cargo of coal at US$10 750. In Asia, despite the widespread holidays levels had remained steady. Period interest also remained as a 35 000 DWT opening in Morocco was fixed for three to five months with worldwide redelivery at US$15 000.

Read the article online at: https://www.drybulkmagazine.com/shipping/19022024/dry-bulk-shipping-market-update/