A modest week for the bulk shipping market

Capesize

Early on there were reports in the Pacific of weather factors that could potentially cause delays. Strong winds and dense fog forced the closure of several ports in China. Additionally, attention was drawn to a tropical cyclone expected to move west across the Kimberley region in Western Australia, prompting mining companies to monitor the situation closely and leading to reduced activity on C5. However, eventually, the level of activity in both the Atlantic and Pacific picked up as well as the market. The Atlantic was extremely busy, particularly from South Brazil and West Africa to the Far East with several fixtures being concluded on C3, initially there were reports of US$24 being fixed, followed by US$24.75, then on Thursday reports of US$25.75, resulting in a 1.73 increase on the C3 index, which published at US$25.65, the C3 index has risen by 0.53 to US$26.180. In the Pacific all three major miners were active, brokers observed a slight tightening in tonnage availability against a healthy cargo list, resulting in fixtures on C5 moving up quickly from US$9.50 levels to US$10.50 and there have been reports of low US$11.00s being concluded, with the C5 index rising by 0.815 to US$11.205. All in all, it has been a very positive period of growth.

Panamax

It returned a week of steady declines for the Panamax market. With the Atlantic basin providing a heavy ballaster list and increased tonnage count, resistance proved to be mostly scarce. This resulted in charterers driving down bids, noticeably for the few trans-Atlantic runs, whereas from South America the nearby dates remained heavily discounted, an 82 000 DWT delivery aps load EC South America early March dates agreeing to US$17 000 + US$700 000 for a trip redelivery Singapore-Japan. Asia bucking the trend for the first part of the week returned decent levels of activity culminating in firmer rates only to falter a little as the week ended with several deals fixing and failing mid-week and the week ended with a mostly flat outlook with split views and the bid/offer spread widening. NoPac rounds initially concluding closer to US$16 000 were now mean priced at around the US$15 000 mark. Period activity limited, the highlight being an 82 000 DWT delivery China fixed basis 1 year at US$18 000.

Ultramax/supramax

Rather mixed fortunes for the sector over the week. The Atlantic was described as positional by many as limited fresh enquiry was seen from the US Gulf and Continent – Mediterranean regions seeing an easing of rates. However, from the South Atlantic demand remained which kept rates relatively stable. By contrast a good amount of fresh enquiry was seen in both the Indian Ocean and Asia leading to stronger rates being achievable. In the Atlantic, a 61 000 DWT fixed a trip from West Africa to China with iron ore in the upper US$20 000s. Whilst another 61 000 DWT fixed a trip from the Continent to the East Mediterranean at US$18,000. From Asia, a 54 000 DWT fixed from Singapore for a trip via Indonesia to China at US$16 000. Whilst a 57 000 DWT open Inchon fixed a round voyage via Australia in the mid US$11 000s. In the Indian Ocean, a 64 000 DWT fixed a tripe delivery Port Elizabeth redelivery China at US$26 000 plus US$260 000 ballast bonus.

Handysize

The gains that were were seen on the BHSI were mainly led by the resurgence in the Pacific with levels of fresh enquiry improving across Australia, Indonesia, China and NoPac, a 33 000 DWT opening in Fancheng was fixed via Vietnam with redelivery Singapore-Japan with an intended cargo of cement at US$6500 whilst a 32 000 DWT opening in Japan was fixed for a round trip via Nopac at US$10 000. Period interest also remained with a 33 000 DWT opening in China linked to fixing for four to six months at US$11 550, whilst a 28 000 DWT opening in WC India fixed for multiple legs at US$10 000. The continent remained active with a 37 000 DWT opening in Immingham fixing via Murmansk to Brazil with an intended cargo of fertilizer at US$17 000. With recent reductions to the draft in the River Plate Charterers are now having to utilise larger vessels to lift the handy stems. The lack of cargo in the US Gulf continued with a 37 000 DWT fixing from Savannah to the continent with pellets at US$10 500.

Read the article online at: https://www.drybulkmagazine.com/shipping/26022024/a-modest-week-for-the-bulk-shipping-market/