Weekly Bulk Report – Week 25, 2020

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Mfame Editor
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The Baltic Briefing has released a report about the dry bulk market of the 25th week of shipping activities of this year. The report dated 19th June highlights the plight of the dry bulk market at the on-sight of the 25th week.

Capesize

The Capesize market this week was one of the steepest rallies the sector has experienced. 

Opening at $12,410, the sector had almost doubled to $25,511 by the end of the week as the Atlantic basin surged into life. A barrage of negative fundamentals in recent times has weighed heavily on Cape demand and pushed imbalances into the fleet positioning. 

Far East

Strengthening iron ore demand in the Far East has been answered by fronthaul loading location sparking a revival of sorts. 

Atlantic Basin

The Atlantic Basin, bereft of business weeks back, has now reached unexpected heights settling at $23,850 – a lift of +$15,200 on the week. 

Pacific Basin 

The Pacific Basin was largely swept up in the sentiment this week, as it was forced to compete for vessels being lured away to greener pastures. 

West Australia to China 

Voyage route C5 West Australia to China reached a high Thursday at $8.918 to drop slightly to $8.841 to close the week. 

Ending Friday the Capesize 5TC posted its smallest daily gain for the week of +231 and appeared to have reached an altitude too high to survive.

Panamax

A dramatic week in the Panamax world with the Atlantic market sparking into life.  

  • Route P1A marked at $4,670 on Monday and virtually doubled in value over the week, whilst 
  • P2a gained well over $3,000 on the week too. 

North Atlantic tonnage

Tight tonnage count in the north Atlantic for June and improved demand from the US Gulf – as well as steady flow from EC South America – were the main contributors to said push. 

Asia

In Asia, a less frenetic pace, but a week in which saw the market gain in values. 

  • Solid coal demand from Indonesia being the main demand driver and sourcing of tonnage in the Asian basin for US Gulf and EC South America trade all impacted rates. 
  • On the Indonesian coal run to China, several Kamsarmax types regularly hit the $9,000 level for such trade. 
  • Confidence in the market for the rest of the year gave testament to an improved number of period fixtures this week.
  • The highlight being an 81,000dwt achieving $12,500 for a short period.

Supramax/Ultramax

BSI, like the larger sizes, gained during the week closing 45 points up from Monday. 

Increased demand was seen from a few key areas. 

  • A 61,000-dwt open US Gulf, fixing nine to 11 months, at $11,150 with re-delivery Atlantic. 
  • From Asia a 58,000-dwt open north China, fixed three to five months, in the low $9,000s. 
  • Atlantic increased enquiry from east coast south America helped rates with Ultramax sizes being covered in the upper $12,000s, plus upper $200,000s ballast bonus for fronthaul business. 
  • From the Continent there was also stronger demand. 
  • A 57,000-dwt fixing a trip to the east Mediterranean with scrap in the upper $7,000s. 
  • The Indian Ocean remained firm and drew vessels from south east Asia. A 56,000 fixing delivery Gresik trip via South Africa redelivery in the far east at $10,000. 
  • Nickel ore demand remained a 61,000-dwt fixing delivery Tianjin via Philippines redelivery south China at $8,500 option north China at $9,000.

Handysize

Rates remained strong in both basins and further improved throughout the week. 

The Continent and Mediterranean market saw better numbers compared with last week, whilst east coast South America and the US Gulf continued firming up. 

Particularly in the East, the Pacific routes recorded the highest values since 2020 began with the rates gaining over $3,000 respectively on each route over the last 40 days. 

Mid-sized Handysize 

Mid-sized Handysize were fixed from east coast South America in the range of $7,000 to $8,000 for a transatlantic run. 

Handy vessels were reportedly fixed from Canakkale for a trip via east Mediterranean / Black Sea to redeliver in the US Gulf in the mid/low $5,000s. 

  • A 35,000-dwt delivery in the Philippines was fixed for a trip to China in the mid/high $8,000s and
  • a 34,000-dwt open Indonesia was fixed for a steel trip via Indonesia to Hong Kong in the low $8,000s.

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Source: BalticBriefing

 

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