Capesize (Atlantic and Pacific)
Another negative week was recorded for Capesizes with rates softening. In Pacific the market was more difficult for owners since many ships decided to remain in the basin to better handle IMO 2020 and the fuel switch. As a consequence, the 5TC lost almost $3,500/d in one week ending at $14,575/d. W Australia-Qingdao rates lost more than $1/mt to $7,14/mt for first half of January dates; time charter rates touched $10,000/d for Pacific round voyage, also due to a sudden jump of bunker prices. Very low activity from Saldanha Bay: Saldanha BayQingdao was reported fixed at the end of the week at $13,45/mt for mid January dates. Out of Brazil the situation was more balanced in terms of ballasters and cargoes: although levels remained stable in the high $18/mt (from $18,96/mt to $18,707/mt) the bunker price affected again TCE rates so expectations were for an improvement of voyage rate in order to compensate at least the bunker price trend. Also backhaul was under pressure with a low $7,45/mt fixed for a cargo from Saldanha Bay to Rotterdam on early January dates. In the Atlantic basin a few fronthauls were fixed at a TCE in very low $30,000s/d for INL breaching cargoes whilst shorter fronthaul via BSea to Far East were fixed in the region of mid/low $30,000s/d with dely aps loading port. Some TransAtlantic RV were fixed in the region of high $9/10,000s/d basis Bolivar-Rotterdam. Very little activity for short periods with $17,000/d apparently agreed for a nice vessel for 1 year trading basis dely China end of December.
Panamax (Atlantic and Pacific)
The week started very sluggish, which is typical before Christmas, and then continued with a similar trend with thin volumes and a lot of uncertainty. The week ended with lower rates in all areas and an imbalance between supply and demand. Demand was very thin in the Atlantic basin despite many charterers were waiting to cover before the holiday period; rates were difficult to assess because of thin volumes and in many cases were very positional. Fronthaul trips seemed to suffer less the declines, but that could be largely due to little activity. The Pacific area remained with the same bearish sentiment of previous week: there was plenty of fixing and failing and rates were under pressure because of a lack of fresh demand. The approaching holidays and IMO 2020 made the market unpredictable and some owners decided to ballast their ships away.
Handy (Far East/Pacific)
The Far East market collapsed at least in part due to the increasing bunker prices. Handies decreased around $500/d, whilst Supramax and Ultramax lost more than $1,500/d. A 63,000 dwt with dely Philippines was fixed at $9,000/d for a trip via Indonesia to Thailand and another similar vessel with dely Indonesia was fixed for the same direction at $9,500/d. A 57,000 dwt unit with dely Vietnam was rumored at $8,500/d for a trip to N China with clinker. Two fixtures with India redelivery were reported: an Ultramax with dely Cigading was fixed at $8,500/d to WCI and a Supramax with dely Vietnam was fixed at $8,000/d to ECI. A 57,000 dwt unit with dely Busan was rumored to be fixed at $8,500/d for a trip via CIS Pacific to China and an old 43,000 dwt unit with dely Japan was fixed at $7,000/d for the same trip. No fixtures were reported on the Handysize.
Handy (North Europe/Mediterranean)
In Cont the market was stable during the week for both Handy and Supramax. No fixtures were officially reported, but a fancy 35,000 dwt was rumored at $8,500/d and then failed a 3/5 months deal with redely Atlantic and the rate discussed on another modern 35,000 dwt for 1 TCT from Cont to USG was between $6,500/7,000/d. For Supramax a modern, grabbed 55,000 dwt was discussed around $12,000/d for a trip to Med and around $15,000/d to F East. All routes from BSEA decreased due to quite a slow activity and very limited fresh demand. A 32,000 dwt was fixed at $8,250/d from Canakkale to W Med and a 31,000 dwt achived $8,000/d to ECSAm. On Supramax a front trip from Chornomorsk to Spain was fixed at $8,900/d and a trip to F East from BSea is assessed around mid $15,000s/d from Canakkale.
Handy (USA/N.Atlantic/Lakes/S.America)
The Supramax market remained unchanged at good rates. A slowdown is expected for the holidays with a well supplied tonnage list and not many cargoes left to be fixed for December dates. Supramax were fixing around $16,000/d on Atlantic trips and Ultramax around $19,000/d. Fronthaul rates for Supramax were around $20,000/d and mid/high $20,000s/d for Ultramax. Handy activity was absent and rates were assessed around $9,5/10,000/d for TA trips on 32/35,000 dwt and $1,000/d higher for 37/39,000 dwt. ECSAm market remained low with a few vessels expected to remain spot until 2020. Handysize rates softened on most routes and 35,000 dwt units were getting around $11,000/d for a trip to Skaw/Passero, $500/d less than previous week. For a trip from ECSAm to Far East rates were still stable at $14,500/d, while Brazilian coastal trips lost a tick to $10,000/d.
Handy (Indian Ocean/South Africa)
Not much activity surfaced from Indian Ocean. 56/57,000 dwt units were rated around high $8/9,000/d basis dely dop WCI for trips via MEG to Chittagong and slightly less for trips via Karachi/WCI range tp Chittagong. A 56,000 dwt was fixed around $7,500/d basis dely aps WCI to MEG with salt. MEG-WCI was rather quiet, but ships were traded around mid $11,000/d basis aps Mina Saqr. From ECI Supramax were getting around low $7/7,500/d with iron ore to F East. Very limited activity from SAfr except a 52,000 dwt that fixed and failed at $12,000/d + 200,000 bb to F East.
Banchero Costa and Co Spa
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