Baltic Exchange: Dry Bulk Report – 4

Capesize

The Capesize market endured a challenging week, with a steadily declining trend across the board. The BCI 5TC shed US$2852 over the week, closing at US$8156. In the Pacific, miner activity remained sparse, with only one miner consistently present. Fixtures from West Australia to China hovered in the low US$6.00 range early in the week but slid to US$5.85 by the end of the week. While cargo volumes appeared stable, limited demand and increasing tonnage weighed heavily on sentiment. The South Atlantic showed initial promise midweek, driven by fresh inquiry from South Brazil and West Africa to China, momentarily lifting the C3 index. However, mounting tonnage in ballast and weaker trans-Atlantic activity caused a sharp decline, with the C3 and C8 indices dropping significantly by weeks end.

Panamax

Rates continued to slide all week with hopes of the market finding a bottom, but some very low trades were still witnessed. The Pacific began the week active, but as Asian holidays approached, the market slowed significantly towards the weekend. The Atlantic was bereft of sufficient demand to counterbalance against the sheer volume of ballaster tonnage that has harshly impacted rates on most trade routes. From South America to Far East trades, a big spread between the voyage and time charter rates, US$30.00 concluded a couple of times for second half February arrivals equating low against the timecharter equivalent rates compared to spot pricing. In Asia, previously seen robust rates ex NoPac unwound this week, rates in the US$7000’s not uncommon whereas far ranging rates for the Australian round trips, between US$4000 and low US$5000’s. As is historically seen this time of year a reasonable amount of period activity, 82 000 dwt’s achieving between US$13 750 and US$12 000 for short period up to 1 year.

Ultramax/Supramax

Another poor week for the sector as the continued uncertainty and lack of fresh cargo led to rates sliding across the board. The Atlantic remained very subdued, from the US Gulf very little enquiry was seen, a 61 000 dwt fixed delivery US Gulf with petcoke to China at US$16 000 mid-week. Elsewhere another 61 000 dwt was heard fixed delivery West Africa trip to China at US$12 000. From Asia, with a build-up of prompt tonnage it remained bleak from an owner’s point of view. A 56 000 dwt fixing a trip from Indonesia to China US$3000. Further north, limited options remained, a 61 000 dwt fixing a NoPac round basis delivery Busan at US$8000. Similarly backhaul options remained limited, a 57 000 dwt was heard fixed from China to West Africa in the mid US$7000s. The Indian Ocean also lacked inspiration, a 59 000 dwt fixing delivery South Africa for a trip to China at US$10 000 + US$100 000 ballast bonus. With the upcoming Chinese holiday, it seems difficult for this trend to see any great change.

Handysize

The market this week saw minimal visible activity across both basins. The rates kept going down across the Continent and the Mediterranean with sentiment appearing generally soft. A 30 000 dwt open spot Castellon/Spain fixed trip delivery Safi to redelivery Dakar-Abidjan with gypsum US$5000. In the South Atlantic and US Gulf, sentiment remained subdued, with tonnage count seeming to maintain its length and putting further pressure on rates. A 38 000 dwt fixed delivery Recalada to redelivery Peru US$15 000. In Asia, the tonnage count has been increasing throughout the week, leading downward pressure on rates and some brokers anticipating further market softening. A 37 000 dwt fixed delivery Paradip 27 January coastal trip redelivery Kandla at US$6000.

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