Capesize (Atlantic and Pacific)
Freight rates kept softening, but TC levels moved slightly up due to falling bunker prices, overall 5TC average showed a very modest $300/d increase. Tubarao-Qingdao went from high $11s/mt to $10.50/mt, losing an average of more than $0.20/mt per day basis end March-beginning of April laycan. W Australia-Qingdao lost a lot at the beginning of the week on the back of very scarce activity by miners. On Wednesday a $0.35/mt rebound was recorded, but then lost again $0.20/mt closing at $4.45/mt basis very end of March laycan. The Pacific RV was more stable swinging between low and mid $3,000/d. In the Atlantic basin rates went up on Wednesday due to some positive sentiment created by a strong fixture done on BolivarRotterdam. TA and Fronthaul routes were also affected by this high fixture closing at $4,000/d and $15,100/d respectively with a gain around $200/d. Very limited activity for period business.
Panamax (Atlantic and Pacific)
A very quiet beginning of week with little activity. In addition, the drop of bunker fuel oil price impacted voyage bids and created something similar to a “watch and wait” situation. A large number of ballasters was moving to the ECSAm area for April positions. In Asia the market was quiet during the week, with little activity reported. Grains activity in ECSAm was slower than usual due to a wide gap between bids and offers. In Asia owners were discouraged to consider Pacific round trips: many owners preferred to ballast their units up to India in order to find better trips to ECSAm. At the end of the week softer level bids were reported from the ECSAm area as the long tonnage list outweighed demand. Narrow activity again was reported throughout the mid-week in the N Atlantic. In Asia, fixtures held steadily despite limited demand; this was largely due to owners will to go to the ECSAm market; however, as that market weakened owners trading strategy was altered and with it came the wide bid/offer spread for TransPacific round trips with some early ships forced to accept weaker numbers in order to get fixed before end of week. A 76,000 dwt unit was fixed for a RV from ECSAm at $9,500/d, while a 80,000 dwt unit was fixed for a tct at $13,500/d + 350,000 bb dely aps ECSAm.
Handy (Far East/Pacific)
The market in F East kept showing some recovering signs and also the number of fixtures was gradually increasing. Rates increased around $1,000/d for Supramax units and around $500/d for Handysize units, compared to previous week. A 58,000 dwt unit with dely Vietnam was fixed at $6,750/d for a trip via Indonesia to S China, a 56,000 dwt unit with dely Philippines was rumoured at $11,800/d for a trip to China with nickel ore and a modern 56,000 dwt was fixed at $11,150/d for the same trip with the same cargo. Two units with dely S China were rumoured to be fixed for trips via Indonesia to N China: a 56,000 dwt unit was fixed at $6,000/d and an Ultramax at $7,000/d. To Westbound direction, a 53,000 dwt with dely Vietnam was reported to be fixed at $6,500/d for a trip to Chittagong. A Handymax unit with dely Indonesia was done at $9,250/d for a trip via W Australia to S Korea. No other fixtures were reported on Handies.
Handy (North Europe/Mediterranean)
The market in Cont was still firm with a bit of activity reported on both Handysize and Supramax segments. On Supramax, a nice 55,000 dwt opening at end of March was rumoured at $17,000/d basis dely dop Rotterdam for trips to E Med with scrap cargo, while charterers were trying to pay around $16,000/d. On the Handysize, a fancy 37,000 dwt was fixed around $14,000/d basis dely dop Hamburg for one trip to China, 55 days duration wog; this was still considered a healthy rate for this size of unit. Compared to other areas in the Atlantic basin, Cont was still considered an healthy area to be open with a vessel. A strange week in Med with the Coronavirus pandemic being the focus of all players involved, and at the same time the market increased. A 32,000 dwt unit failed on subs at $6,000/d basis passing Canakkale for a trip to Tunisia because the last port called was in Italy. BSea was trending sideways held back by the ECSAm market: a 55,000 dwt unit was reported to be fixed at $6,000/d basis dop in BSea for a backhaul to US EC.
Handy (USA/N.Atlantic/Lakes/S.America)
Another positive week in the Supramax and Ultramax segments with levels that improved in every direction: Supramax units were fixed in the high $14,000/d for TA RV while Ultramax enjoyed a premium of a couple of thousand dollars. On Fronthaul rates went from $20/21,000/d up to mid $20,000s/d, depending on size and if with petcoke or grains. Rates increased also on Handies on the back of a good amount of activity: 32/35,000 dwt units were fixed in the $11/12,000/d for TA RV while larger 36/39,000 dwt units were rumoured in the $12,500/13,000/d. From ECSAm the market still showed a positive trend on all routes and sizes. Handysize to Cont/Med improved from $10,500/d of previous week to $11,500/d, trips to F East went to $17,000/d with a gain of about $1,000/d. Charterers on Brazilian coastal trips were trying to pay around $10,000/d, or even tick more. For what concerns the Supramax and Ultramax segments, the trend was generally positive, but at the end of the week it seemed to start softening again. Our assessment is close to the one of previous week: Supramax units were fixed around $16/16,500/d for trips to Cont/Med and Ultramax units were fixed at some $1,000/d more. Tess58 were still paying $13,500/d + 350,000 bb to F East while Ultramax units were around $14,500/d + 450,000 bb with same direction.
Handy (Indian Ocean/South Africa)
Rates remained strong: smaller Supramax units were fixed around $10,500/11,000/d basis dely Fujairah for trips via MEG to ECI/Bangladesh range and from WCI to China, even though demand was not increasing, Supramax units were fixed closer to $11,000/d. ECI in particular remained strong with Ultramax units getting $13/14,000/d to China direction and Supramax units fixed above the $12,000/d level over the week. A 55,000 dwt unit was fixed around $8,000/d for coastal trips from ECI to WCI. The market in S Afr remained strong with more deals towards F East that paid a premium: the same happened to rates on trades basis dely dop India/Sri Lanka. A Supramax unit was rumoured around high $8,000/d dop S India for similar route. For usual S AfrIndia coal trips, Ultramax units were fixed around low $ 12,000/d + 200,000 bb level.
Banchero Costa and Co Spa
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