The Baltic Briefing has released a report about the dry bulk market of the 31st week of shipping activities of this year. The report dated 31st July highlights the plight of the dry bulk market at the on-sight of the 31st week.
Capesize
A quiet end to the week could not disguise the improved sentiment in the capesize market, with several brokers suggesting that this may simply represent a precursor to another move upwards.
Timecharter average
The timecharter average climbed $1,282 to close at $18,296, driven predominantly by the Brazil and Australian round voyages on continued iron ore demand strength.
C3 Brazil-China route
The C3 Brazil-China route gained $1.53 to close at $17.47.
C5 Australia-China route
The C5 Australia-China route posted $1.16 to close at $7.155 on the week.
Richards Bay into Turkey backhaul fixtures
Sentiment was also such that a brace of weak backhaul fixtures from Richards Bay into Turkey could not dissuade the market from marking the C16 relative to the shorter duration and the repositioning benefit of the Black Sea.
The impression is that the capesize market remains poised to buy into the positive, rather than sell the negative.
Panamax
The panamax market proved to be quite a contrasting week, with rates globally for the early part still severely under pressure. By midweek, sentiment and fresh enquiry – noticeably from EC South America – had improved. However, there were still many early ships remaining unfixed – particularly in the Atlantic – thus maintaining a lid on any rapid rate rises.
Similarly, in Asia improved NoPac demand led the turnaround in fortunes for owners, accompanied with a solid cargo base from both Australia and Indonesia.
Minor gains were seen on the short week, with a national holiday in Singapore on Friday.
Trans-Atlantic round trips
Trans-Atlantic round trips ex NC South America were seen earlier in the week going at a region $12,750 delivery Aps load port. By Thursday this was more akin to $14,250 for the 82,000dwt type.
Australia
Median rates for Australia and NoPac rounds hovered around the $11,000 mark for much of the week for index type tonnage.
Ultramax/Supramax
A poor week overall for the BSI with the index falling 36 points from Monday. Owners were reluctant to commit.
Atlantic
From the Atlantic, pressure was seen in many areas with tonnage building up and limited fresh enquiry.
South America
With the ready supply of tonnage east coast South America, there was a drop in rates. A 63,000-dwt trading around $17,000 for a trip to west coast South America. Other areas remained positional.
West Africa
From west Africa a 52,000-dwt was fixed for a trip to China at $21,000.
Mediterranean
From the Mediterranean, ultramax sizes were fixing around $12,000 for clinker runs to west Africa. With the Eid holiday many areas in the Indian Ocean and Asia saw limited fresh enquiry.
Fixed delivery rate
Nevertheless, a 55,600-dwt fixed delivery east coast India redelivery China in the upper $14,000s. Meanwhile, a 63,000-dwt fixed delivery north China for an Australian round at $11,000.
Handy
The overall index BHSI continued climbing since early May and remained at the highest level of the year this week. However, it also showed a minor decline for the first time in the last three months.
The market was largely flat with limited cargoes from east coast South America and limited activity in the Pacific, although brokers saw an uptrend from the Skaw-Passero range with better rates discussed.
A small-sized delivery Canakkale was fixed for a trip via the Black Sea to Morocco at $7,000. A 34,000-dwt delivery Recalada in early August was fixed for a trip to the central Mediterranean with grain at $12,500.
In the East, an Imabari 38 type delivery in the Far East was fixed for a Nopac run at $7,500, and a 37,000-dwt open Southeast Asia was fixed for a trip to the Philippines at $8,000.
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Source: Baltic Briefing
