The Baltic Exchange has released a report about the dry bulk market for the 25th week of shipping activities this year. The report dated 23rd June 2023, highlights the dry bulk market conditions at the on-sight of the 25th week.
The week began with a sluggish and quiet market in both the Pacific and Atlantic regions. There was a noticeable lack of participation from any of the majors, from West Australia to China, resulting in an absence of activity. However, by mid-week, the Pacific market stabilized, with conditions gradually improving and rates showing a slight increase. Towards the end of the week, the Pacific market witnessed a notable resurgence, despite the holidays in Hong Kong and China. Two of the major players re-entered the market and engaged actively, leading to upward pressure on rates.
After a subdued start, the Atlantic market began to gain momentum with an increase in activity, especially from Brazil and West Africa to the Far East. The fresh enquiry began to emerge, particularly in the North Atlantic. This, together with constrained tonnage supply, resulted in more favourable rates being achieved. As the week draws to a close, it has been a positive one overall. The BCI 5TC, which opened on Monday at $12,375, has experienced a significant rise and currently stands at $17,252.
A subdued week for the Panamax sector. Trans-Atlantic grain trades were few and far between, although slight premium rates were achievable on the same with reports of an 82,000-dwt delivery, France achieved $9,000 for an NC South America trans-Atlantic round trip with grains. EC South America returned to a contrasting week with a mixed feeling here, limited demand so far but P6 index dates appeared well balanced whilst first-half July arrival dates remained softer with committed and ballasted tonnage undermining any potential upside in rates. The Asian market continued to ease as the week wore on, blighted by holidays towards the end part of support was hard to come by as the tonnage count continued to grow, and with limited enquiry ex NoPac mineral demand ex Australia and Indonesia returned insufficient to prevent the softening of rates in the arena. On the period front, reports of an 82,000-dwt delivery in China agreeing to $13,000 basis 9/11 months trading.
East Coast South America saw a flurry of activity as more July requirements entered the market. A 63,000-dwt fixing from Paranagua to Chittagong at $15,500 and a $550,000 ballast bonus, and a 55,000-dwt fixing from Santos to Port Kelang at $13,000 plus a $300,000 ballast bonus. The South Africa region also saw numbers improve, with an Ultramax rumoured to have been fixed from South Africa to China at $16,000 plus a $160,000 ballast bonus. Asia saw activity slow due to holidays but a scrubber fitted 60,000-dwt fixed from Japan via Nopac to South East Asia at $11,000 and a 63,000-dwt fixed from CJK via Australia to China with an intended cargo of grains at $10,000. A scrubber fitted 64,000-dwt fixed from Japan to West Coast India at $10,500. A 60,000-dwt opening in West Coast India was fixed for a period from 25 June 2023 up to a minimum of 10 August 2024 up to a maximum of 10 October 2024 at $13,800.
Despite the limited visible activity in general, small pockets of positivity returned to the Handy sector, with East Coast South America seeing more requirements for July dates with a 36,000-dwt being linked to fixing from Upriver Plate for a trip to Morocco in the high $12,000’s. In contrast, the Mediterranean had seen minimal fresh enquiry and an unnamed Handy was rumoured to have been fixed for a trip from Gijon to the Continent at $5,000 whilst a 30,000-dwt was rumoured to have been fixed from Morocco to Brazil at $4,000. In the US Gulf, a 37,000-dwt fixed from Houston to West Coast of Central to West Coast South America with an intended cargo of petcoke at $11,000. In Japan, a 33,000-dwt was fixed for a trip to the Arabian Gulf with an intended cargo of steel at $8,250. A 38,000-dwt fixed from Balawan to South Korea at $8,250. A 33,000-dwt fixed basis delivery in Singapore for two to three laden legs at $9,100.
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Source: Baltic Exchange