Capesize
Finally, a positive week for the Capesize sector with 5TC gaining around $4,000/d with a spike on Tuesday and Wednesday at a peak of $15,850/d as an average before closing at $14,250/d on Friday. In the Pacific, the standard C5 had a roller coaster trend where the route had a spike mid-week traded up to $8/mt, $2.50/mt more compared to the previous Friday with TC jumping at over $16,000/d but after that C5 quickly went down at the end of the week with $7/mt done for early march dates. The C17 Saldanha Bay to Qingdao followed the same path reaching $13.40/mt on Wednesday before closing at $12.95/mt on Friday. Some activity out of Brazil with some operators very active in securing ships for mid-March dates as the routes gained $3/mt in few days trading at $18.50/mt and thereafter it started to slow down to the final levels of low $17/mt. In the Atlantic, fronthaul and TransAtlantic RV improved with both C9 and C8 reaching $31,000/d and $17,000/d respectively.
Panamax
Another astonishing week has just concluded, with a further final rise in paper and bunker prices to seal a record week. Despite the little drop in the market levels on Thursday, we have seen a crescendo till Wednesday, and again on Friday, the paper has gained a good $2500/d for March and $2,225/d for Q2 over Thursday. Offers for Santos to Qingdao route have constantly been in the mid to low $50/mt level while a week ago we were surprised to see offers in the low $40/mt. Nevertheless, it’s been reported ADMI 63/10 fixing at $46.50/mt from Santos to China for March dates, therefore, witnessing a real market which is probably some dollars under the owners’ dreams. Also, Cargill is bidding at $44/mt basis same terms and same dates. For what concerns ECSAm backhauls, some large LME has been fixed at $30,000/d for a trip to USG and 21 + 300 for TransAtlantic. The end of the week softening was reflected on the North Atlantic area, where standard LME has been fixed at mid to low $40,000s/d for 2 consecutive trips for iced ports trading and breach IWL limits while last week similar units averaged around $70,000/d or even more. Where breaching IWL was not requested we have seen some better rates in both NCSA and USEC, while USG seemed a bit softer overall. Cargill took a Karmsarmax basis dely Gib in $23,000/d for NSCA loading to Skar/Passero while ArcelorMittal took a good Karsarmax basis Cont on voyage basis at TCE of $24,000/d for the same run. A real strong number was said to be done at Pedhooulas builder, 2016 KMX who claimed to have fixed USG Fronthaul at $21,000 + 1.2 million basis aps SW Pass for a trip to China. The Black Sea also is still living good momentum, with good units still taken basis dely Indian Ocean for Black Sea Fronthaul; on Friday one LME has fixed $24,000/d basis dely WC India while a 2019 built Karmsarmax has fixed $34,000/d but basis dely Port Said. With the quick push of the paper and bunker together on the late afternoon of Friday, most of the players are still very positive for the next week again.
Far East/Pacific
After the Chinese New Year holidays, the Far East market started to increase day by day like all the other areas. For Supramaxes, rates improved by between 2000 and 3000 dollars compared to what they were before the holidays on all routes, and China direction remains the strongest one. Not too many fixtures were reported on Supramaxes: a 53,000 dwt delivery Singapore was fixed at around 15,000/day for a trip via Indonesia to China, and a bigger Supramax delivering Vietnam was rumoured to be done at 13,500/day for short period. The Handy market increased also if more slowly; a 36,000 dwt delivering south China was reported to be fixed at USD 9,000/day for a trip via Australia to Persian Gulf. A similar size vsl delivering Vietnam took 11,000/day for a trip to Chittagong with aggregates and a 28,000 dwt delivery Singapore was rumoured to be done at around 10,000/day for a trip to China with streel products.
North Europe/Mediterranean/Black Sea
The market had a hectic week with rates rising all across the board. Big Handies fixed trip via ARA (ice free) into Med at USD 22,000 dop; a smaller lady - 32k dwt - got 15,500 dop west Med for trip via Baltic into west Med with grains, trip to USG on a 35k fixed at USD 16,500 (done midweek hence rate is still somehow cheap). If loading from an ice port and in view of the fact ice class or ice trader ship are very few and far in between asked hire will be pretty much higher ... But, unfo, there's no market rate for it as owners priced differently. Need to underline that many chrts too ship on period to cover their cgo hence rates for period reached a solid 17,750 for 3/5 mons rdel Atlantic for a 36k dwt delivery UK. Suezmax and Ultramax had the same path: for non-ice trade 58k dwt fxd USD 18,500 dop UK for scrap, while for loading out of Baltic 57k dwt open bejaia fxd USD 19,500 dop trip via Baltic/India rdel pt said, at the beg of the week 63k dwt fxd at 13,500 dop ARA trip with steel products into USG ... but by end of the week this run reached the mid/low teens dep on size dely, on notable period fixture as been on 56k dwt opn Iceland end feb at 3/5 mons trading at USD 19,000 dop + 500k gbb if rdel ww
The Black Sea market is still climbing upwards. During the week very high numbers were heard fixed, but also many failed. It is clear that there is a lot of off market activity probably at lower levels than those present on the market, however, the reason why the market remains so strong is elusive, given that there is no significant drop in tonnage present in the area. Considering the above we can only try to guess an average of the routes of the area. For Handies basis Canakkale delivery the trip to Continent is now around USD 17,000, while the trip within Mediterranean is around USD 18,000/18,500. The trip to ECSA and USG are now getting USD 16,500, while the trip east passed from low USD 20,000 to USD 24,000. The Supramaxes and the Ultramaxes fixing cross-Med at 18,500/19,000 and trip to Continent at USD 18/18,500 respectively. The trip back to USG and ECSA is still very strong at USD 18,000 for Supra and 19,000 for Ultra. The trip is flying at USD 30,000/31,000 bss Canakkale on Ultra and ard 29/30,000 for Supra.
US Gulf/N.America/East Coast S.America
Supramax and Ultramax keeping last week rates even if activity has not been great. Sentiment is driving most of the moment. Difficult to make a proper count if there are more cargoes then vessels being many of them scheduled on booked cargoes. We have to record last week Supramaxes arnd 27/28,000 and Ultras arnd 29/30,000 for TARV. For fhauls Ultras are arnd 31,000 and Supras arnd 29,000. Small premium if petcoke loading of 1000 dollars. Handysizes keep the strength and eventually picked up some more dollars. USEC positions have been growing of power with actually higher numbers compared to USG. Good balance between vessels count and cargo count. Levels for 32/35,000 dwt arnd 16,000s and the larger 36/39,000 dwt in the 18/19,000's for TARV. 1000/1500 dollars premium for petcoke loading.
The market in ECSA was good and positive during the week both on Handy and Supramax sizes. On the Handy front, no fixture has been heard so far. The estimated hire for a 35,000 dwt modern/geared was around USD 24,000 basis dely aps south Brazil for one tct with grains to Continent/Mediterranean range, while on fronthaul the level done estimated for a nice 35,000 dwt geared and modern was around USD 29,000 basis dely aps south Brazil for trip to Singapore-Japan range. On Supramaxes and Ultramaxes, it was rumoured at the beginning of the week that a nice 56,000 dwt modern and geared was fixed at around USD 18,250 dop basis dely West Africa for one trip via north Brazil to west Mediterranean for duration around 40 days wog. There was also rumoured that a nice 66,000 dwt was traded at USD 20,000 plus one million ballast bonus for one tct with grains into Singapore - Japan range which was a very nice level which was in line also on what the Panamaxes were getting for the same trip.
Indian Ocean/South Africa
The market held firm during the week, with rates discussed/fixed better than the week before. From PG not much was heard but vsls were offered arnd USD 30k levels for China direction. A UMX in PG was heard to be fixed at low 30k levels for trip to ECI. From WCI, a 58k tonner was heard to do voy biz towards China direction with tce of 30k with sulphur from PG. A 57k open WCI was fixed for trip to Bangladesh via PG at USD 26k levels. Another 50k dwt open WCI was heard to be fixed for trip to PG at 16k levels. A 56k open WCI was understood to be fixed for few legs at high 17k redel ww. Rates were high in SAfr as well, early in the week a umx rumoured tb fixed at 15k aps + 500k gbb levels to Bangladesh direction with coal whereas towards the end of the week a 61k tonner was heard fixed similar levels for PG-WCI direction.
Banchero Costa and Co Spa
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