This weekly update by Fearnleys shows the dry bulk market conditions.
Dry Bulk
Capesize
We see volumes holding consistent with inquiries from miners and operators on C5 for mid-January dates. On the East Australia coal and Pacific front, we see several fresh inquiries and an uptick in volumes from the previous week. On South Africa and Indian business, we see limited inquiries primarily for mid to late January stems. On C3 ex Brazil to China and West Africa, we see inquiries for mid to late January. Far East tonnage seems to be slightly tight. Ballasting tonnage weighs heavily from mid-January onwards. On C5, we see conclusions at high USD 10 pmt at the start of the week and mid-USD 10 pmt levels by mid-week. On C3, we see limited fixtures concluding at USD 25 pmt levels for 2nd half of January and several adopting a wait-and-see approach.
Panamax
The Panamax market has shown mixed signals over the past week, with a correction due to abundant available tonnage and limited inquiries. Freight rates from the Continent to the Far East remained stable at USD 39/tonne. Since July, the Panama Canal’s reduced transit capacity to 32 daily transits (regular daily transit is between 38 and 40) has significantly influenced the market. Additionally, the market in the Pacific was subdued, with limited fresh inquiry from Asia, notably from Indonesia and NoPac, affecting rates and demand. This overall decline in demand and the continuous decrease in Panamax ballasters highlight the current challenges with a simultaneous decline in supply and demand. This can lead to a more balanced or stagnant market rather than a clear benefit to owners or charterers.
Supramax
A lot more activity on the Indian Ocean and the Pacific side last week prior holiday season with more cargo orders flowing in. Hearing WC India-China Supra voyages being fixed at last done levels. The usual Indonesia-India trips are fixed at around 10k levels. ECSA-Far East Supra trips are being fixed around 23k levels. With the coal & grain season coming to an end, we can expect to see a seasonal slowdown in the coming weeks. Position lists still have plenty on offer, especially in the Pacific, but even here rates are holding well – however, people are happy, or resigned, to pay what it says on the ticket. As we near the end of the holiday season, we can expect more activity in the coming week.
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Source: Fearnpulse
