Capesize (Atlantic and Pacific)
The Capesize market went down quite a lot during the week with 5TC average that lost more than $6,000/d and reached $27,600/d level. Tubarao-Qingdao route was almost in free fall: it showed the biggest drop between Monday and Tuesday losing $0.80/mt then it progressively went down and closed the week at $19/mt for early August laycan. Brazilian RV decreased too losing more than $3,000/d and closing on Friday at $22,000/d. Saldanha Bay-Qingdao route followed the same path going from $16/mt to $15/mt from Friday to Friday. The same happened on W Australia-Qingdao route: rates decreased losing $0.40/mt at the beginning of the week and after that they kept decreasing day by day closing on Friday at $8.94/mt for second half July dates. The Pacific basin was under pressure as well: rates lost $8,000/d closing at mid $20,000/d. The Atlantic basin seemed a bit less affected and quite stable at the beginning of the week: rates on Fronthaul started going down after losing $7,000/d and then closed the week at $48,000/d. TransAtlantic followed the same path going from $36,500/d to $32,500/d. Not much activity reported on period.
Panamax (Atlantic and Pacific)
The market started off fairly strong at the beginning of the week, while usually there are watchful and uneventful sentiments on Monday: a continued push from ECSAm and an underlying demand from BSea combined with a tight position list in N Atlantic pushed rates up. The lack of available tonnage in N Atlantic led to continued gains both on TransAtlantic and on Fronthaul rates, both benefitting significant increases. Some charterers looked at tonnage open in India to cover BSea demand: this highlighted the strong demand and many fixtures for a Fronthaul trip. The Atlantic basin was the main driver: rates increased of around $4,000/d overall in the Atlantic and owners were encouraged to consider Fronthaul direction losing their advantageous position for TransAtlantic trips paying rates akin to $17,000/d. A Panamax was rumoured at $22,600/d for a time charter trip from France with redely China and another Kamsarmax was fixed at high $15,000/d for a TA RV basis dely dop BSea. Shorter Baltic RV trips were rumoured at $20,000/d and more while it was recorded a strong demand from BSea: charterers in once case picked up tonnage with dely WCI at the same rate. In the Pacific basin, crew regulations enforced in Australia by the Australian Maritime Safety Authorities contributed to premium numbers due to few units in compliance with these regulations.
Handy (Far East/Pacific)
Even if activity seemed to have recovered in the area, rates remained more or less stable compared to previous week both on Supramax/Ultramax units and on Handysize. A Ultramax with dely N China was fixed for a trip via Australia to Spore/Japan range at $9,500/d, a 55,000 dwt with dely Spore took $8,500/d for a trip via SAfr to China and a 61,000 dwt with dely S Korea was reported to be done at $9,900/d for a trip via NoPac to Japan. Regarding W direction, a 55,000 dwt with dely Spore was fixed at $7,250/d for a trip via Indonesia to ECI and a similar size unit with dely mid China was rumoured to be done around $3,000/d for a trip via Indonesia to WCI. No fixtures were reported in the Handysize segment.
Handy (North Europe/Mediterranean)
The market was strong in Cont both for Handysize and for Supramax units: rates showed an improvement as per other areas in the Atlantic even if the activity and fixtures were not widely reported. In the Handysize segment, a nice 35,000 dwt was fixed at $9/10,000/d basis dely Cont with scrap cargo to E Med. On bigger units, there were rumours that an European operator was ready to pay $16,000/d a nice 61,000 dwt open in Cont for one time charter trip with scrap cargo and redely E Med showing an improvement from previous weeks. Stronger numbers were reported in Med due to an improvement in grain movements, anyway not many fixtures were recorded in the area. Among the most noticeable fixtures of the week, a 63,000 dwt basis dely Canakkale was fixed at $16,750/d to F East and another 63,000 dwt was rumoured at $19,000/d basis dely Iskenderun for a Fronthaul biz Fronthauls on the Handysize units were rumoured in the $11/12,000/d depending on type of cargo For trips back to USG/USEC rates remained around $4/5,000/d as per previous week.
Handy (USA/N.Atlantic/Lakes/S.America)
Rates in the Supramax and Ultramax segments increased from previous week showing a positive sentiment: Supramax units started seeing values in the $15,000/d on TransAtlantic RV and Ultramax in the $19,000/d. On Fronthaul, rates on Supramax were close to $20,000/d while on Ultramax were in the mid $25,000/d. A positive attitude was recorded in the Handysize segment too: rates on 32/35,000 dwt units were around $9,000/d while larger 36/39,000 dwt were in the $11/12,000/d on TransAtlantic RV. The market in S America was still strong on all sizes. Rates on trips to F East had a good improvement, probably due to a slow market in the area. Handysize units were fixed in the $11/12,000/d (if not more) basis dely aps ECSAm respectively for trips to ContMed range and in the $15,500/16,000/d for trips to F East Rates on Brazilian coastal trips were around $10,000/d Supramax units were fixed in the $14,000/d for trips to Cont in the $14,500/d for trips to Med and around $14/14,250/d + 400/425,000 bb for Fronthaul. Ultramax units asked $15,250/d + 525,000 bb or more while they get fixed around $15,000/d + 500,000 bb for trips to F East Rates on trips to Skaw/ Passero range were rumoured at $15/15,500/d depending on destinations.
Handy (Indian Ocean/South Africa)
Similar trend of previous week: 55/56,000 dwt Supramax units were rumoured at $14,000/d to ECI direction with limestones. A Ultramax was rumoured around $15,000/d level for trips via Pakistan to Chittagong while a 56,000 dwt was fixed at $14,000/d from WCI with redely Spore/Japanrange. The market in ECI slipped further: 55/56,000 dwt units were fixed around $10,000/d at the beginning of the week and around $9,000/d towards end of week with iron ore cargoes to China. Rates from S Afr were generally around $11,500/11,750/d+150/175,000 bb with coal cargoes to Pakistan/WCI. Ultramax units for similar trips were fixed around $12,500/d+250,000 bb. Early in the week a 55,000 dwt was rumoured at $7,000/d basis dely Spore for a trip via S E Afr to F East.
Banchero Costa and Co Spa
Email: research@bancosta.it
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