Capesize
The Capesize market softened slightly, with 5TC closing at $19,000/day, down USD 400 from the previous week. The standard C5 West Australia/China was a little volatile, falling to high $8/mt midweek for early April dates before recovering to trade at low $9/mt for mid April dates. TC rates ranged from $20,000 to low $20,000/day. For the second half of April l/c, the Saldanha Bay/China price remained stable in the mid/low $16/mt range. Some activity was seen on the Brazil/China route, with the C3 falling to $20.70/mt on Wednesday from the previous week's high of $21.75/mt and then recovering to $21/mt for end-ofApril dates. Basis May dates market was bit higher with $22/mt traded. The Atlantic remained calm, with fronthaul and transatlantic rates remaining stable in the low $30,000/day and $17,000/day ranges. On period, low/mid 20K was traded for 9/12 MOS basis dely China.
Panamax
NOPAC was the leading market in the Pacific basin, with a high level of grain enquiries quoted into the market. As a result, rates from N.China-Korea-Japan range had been quite healthy, with assessments in the mid-to-high $20,000/day for good Kamsarmax. Instead, market activity in Australia and Indonesia was slow for the majority of the week, as many charterers chose to “wait and see” after witnessing the FFA roller-coaster last week. Depending on vessel specifications, Kamsarmax assessed in the mid $20,000/day for Australia RV basis dely N.China area and high $20,000 for Indonesia RV basis dely S.China-SE Asia. In the Atlantic, sharp fluctuations on Wednesday fuelled fears of a rapid market collapse, but it took 24 hours for the market to return to its preweekend levels. The week ends with the index at a healthy $56.60/mt, indicating an upward trend for the Santos/Qingdao route. Some nice Kmx have been fixed in the $29,000/day dely India for a trip via ECSA to Spore/Japan, but many Owners are still optimistic about a further market improvement in the coming weeks due to a shortage of ballasters with ETA South America within April dates. TAs are paid around $34,000/day in comparison to NCSA/ECSA, with the majority of offers from Kmx owners falling closer to the $36,000/day region. Finally, recent news reports suggest that the Argentinian authorities may request quarantine for ships arriving from Brazil, which could cause problems in the freight market and for all cargoes loading from two or more ports in ECSA. Many more fixtures have been concluded this week in the North Atlantic area, where also the Baltic reported some deals concluded. Nordic fixed once again the mv Despina V 80,000 dwt built 2018 basis dely Dunkirk via Baltic (breaching IWL limit, still required) for redely continent, while Cargill took the mv Pendulum 82,619 dwt built 2006 dely Gdynia for prompt dates for tct via Murmansk to Italy and redely Gib (Enel cargo) at $23,000/day; similar trip has been clean fixed on the Greek Pmx Prigipos 92,000 dwt by Suek dely cont and redely Skaw-Gib and scrubbers for charts account. Fronthaul was instead fixed by Cargill on the Japan built Kmx Btg Matterhorn 81,000 dwt built 2016 at $36,000/day dely Hamburg via N. France to SE Asia. Because there will be no need to break IWL limits in the coming weeks for trading Ust Luga and other iced ports, more cargoes are expected to come out while less tonnage will be available for the usual t/a rv. Black Sea instead was a bit quiet this week, mainly driven by situation of the container ship blocked in the Suez Canal and few fixture have been concluded; a quick BSea to Turkey coal cargo has done on the 81,000 dwt Evmar at $23,000/day basis Brindisi by Norden.
Far East/Pacific
After a number of positive weeks, also the Far East market started to show some signs of weakening during last week, especially on Supramaxes where rates showed a decrease of around 1,500/2,000 dollars. A 53,000 dwt delivering Thailand was reported to be done at around USD 20,000/day for a trip via Indonesia to South East Asia and a similar vessel delivering mid China took USD 26,000/day for a trip to South East Asia with steel products. Regarding China direction, a 56,000 dwt delivering south China was fixed at 26,000/day for a trip via Philippines to China with nickel ore and a 52,000 delivering Hong Kong took the same money for the same trip. Regarding west direction a 63,000 dwt delivering Singapore was rumoured to be fixed at 28,500/day for a trip to India with coal. On Handies, a 37,000 dwt delivering mid China was done at 27,000/day for a trip to west coast central America with steel products.
North Europe/Mediterranean/Black Sea
Week started a little bit slowly, with both charterers and owners taking a bit of a wait and see attitude. At mid-week the path got clear and the awaited adjustment on rates came along with usual trip Rouen / Morocco fixed at USD 19,250 aps by a very nice 40k dwt, 3/4k USD less than week before, and 35k dwt opn Portugal got 19k dop for the same trip. Continent R/V worth in very high teens, while trip USG / ECSA in region 18/19k dep on vessel's size/dely. Fronthaul in mid/high 20's sub duration and redelivery. Also the Supramaxes and Ultramaxes suffered a correction in the rates: usual trip Cont / west Med with scrap has been fixed at 26k dop ARA by a 61k dwt, while trip from north Continent - ice free - into west Med goes in the low 20's dop ARA, fronthaul in region of very high 20's sub dur and redel. USG/ECSA goes in the very high tens, while trip to west Africa done at 28k dop north Spain by a 61k dwt tonner. Next week the market needs to be tested across the board as there are many question marks including the impact from the Suez Canal closure.
The Black Sea market had a significant slowdown during the week. Even if some cargoes are present in the market many traders weren’t able to make them become firm. Some Handies heard fixed around USD 17,000 bss Canakkale for trip to Med, even if we think the market is around USD 18,000, or around USD 17,500 for trip to Continent. Supramaxes went down as well and set the bar to USD 18,000 for Continent and USD 19,000 for crossMed. The trips to US Gulf are softening also on Handies but remain practically stable on Supras: USD 18,500 on Handies to USG and USD 20.000 for Supras, for trip to east coast South America rates are similarly at USD 18,000 for Handies and USD 20.000 for Supras. For what concerns fronthaul the 38k dwt Handies and the Tess 58 are now in the low 30's but, considering current Suez canal congestion surely chrtrs will have to overpay against the market or postpone the cargoes probably.
US Gulf/N.America/East Coast S.America
Supramaxes and Ultramaxes will face another week with a softening market mainly driven by a long tonnage list and only few cargoes available. The high levels were also thanks to a worldwide strong market which seems softening everywhere, Supramaxes arnd high teens and 20000 for tarv on Ultras. For fronthauls Ultras are arnd high 20's and Supras low 20's and small premium if petcoke loading of 1,000 dollars. Handies had been softening and will keep doing so this week. Fewer cargoes and a longer vessel list seen again here. Units of 32/35,000 dwt are getting around mid teens and the larger 36/39,000 dwt in the high teens for now; this week they will probably decrease further. 1,000 dollars premium for petcoke loading.
The market in east coast South America was still good during the week, both on Handies and on Supramax. There were rumours that a nice and fancy 33,000 dwt was fixed at USD 23,000 basis dely north Brazil for one tct with grains into Med which was still quite a healthy rate for a Handysize like this. On the Supramaxes and Ultramaxes there was reported that a nice 63,000 dwt modern and fancy was fixed at around USD 18,000 plus USD 875,000 gbb basis dely east coast South America for one trip into Spore-Japan range. So far, no T/A's has been reported on this size.
Indian Ocean/South Africa
The market started to slow down with rates going down in most areas. AG-WCI range remained more or less stable with rates only coming off by smaller margin as compared to Southern Africa or ECI area. For trip from AG to Bangladesh a umx was heard to be fixed arnd mid 38k levels dop WCI and another umx open Pakistan was heard to be fixed in very low 40k levels for similar trip. Trips from AG to WCI with limestone was giving return of arnd 32k-33k levels for supras open inside AG. A 56k tonner was heard to be fixed at mid 33k for 2ll redel Spore-Japan range. Towards end of the week a 58k open Sri Lanka was heard to be fixed at 30k dop for WCI to China with iron ore in bulk. Period rates were still good in the area with a eco 63k tonner fixing 11-13 mos arnd mid 25k levels dop Bangladesh and a dolphin type 64 going at 31k levels for 80-100 days delivery from AG. Rates in ECI kept falling with most head chrtrs unwilling to move without a substantial discount on last done levels. A 56k tonner open Bangladesh was heard to be fixed arnd 30k levels for tct iron ore to China early in the week, whereas towards the end of the week a 63k tonner was heard to be fixed for similar trip dop Bangladesh bss at 28,500 levels.Early in the week a 60k was heard to be fixed for safr coal to Pak bss dop Tuticorin at 27k. A 58k tonner was heard to be fixed at low 16k + low 600k levels aps safr for similar trip towards the end of the week.
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