Fearnleys Dry Bulk Report – Week 34, 2022

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Fearnpulse publishes the dry bulk report for the 34rd week of the year.

Capesize

Market has gone from bad to worse. The average of all routes is down by 37%, and we now experiencing sub operational cost for the fleet. However, you could argue that scrubber ships still in the money as the benefit is approximately USD 9000 per day. Hence, it’s hard to predict how the market will look the next week to come as the levels itself is brutal, but still downside for the economical part of the fleet.

Another angle to look at is the activity, which has been extremely poor, and it’s hard to expect less action. Thus, as we think there will be more requirements the following week, we do assume levels will pick up.

Panamax

After a period of sliding markets in both hemispheres, this week has seen a more dramatic fall in rates, particularly in the Atlantic basin. In the Atlantic there has been a severe shortage of fresh cargoes with tonnage building up. Consequently, there has been a dramatic fall in levels both for transatlantic trips and fronthauls.

The Pacific is more complex, with some more activity and cargoes. However, a surplus of tonnage and a very limited ECSAM market has kept rates in the red in the Pacific basin as well. The period market remains quiet with the exception of a few short-medium periods being concluded.

Supramax

Supramax earnings remains the highest amongst all the dry bulk segments. However, downside should be expected going forward, as every major manufacturing and industrial production indicator is weak. Steel production growth is negative and manufacturing PMIs are pointing to a drop in output. From the market view both players (owners and chrts) monitoring market.

Supramax from Santos covered at USD 14,500 + USD 450,000 bb for trip to Far East. An ultramax open in Continent was fixed with trip via Baltic to East Africa at USD 18,500. From the East, Ultramax open Singapore concluded at USD 28,000 for trip to China via Indonesia. Another Ultramax open Port Klang was fixed at USD 25,000 to Thailand via Indonesia.

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Source: Fearnpulse

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