Capesize
The Capesize market strengthened this week as Pacific routes were affected by weather incidents pushing the 5TC up $3,244 week on week to settle at $35,713. China endured typhoon In-Fa throughout the week as it closed ports and disrupted tonnage flows along the eastern seaboard. The Transpacific C10 added a whopping $4,238 on Friday alone to close out the week at $45,413 as the effects translated through to the charter rates. The Backhaul C16 also turned up the heat on Friday, rising $4,460 to $11,895 as stronger fixtures had been heard in the latter part of the week. Owners reluctant to lock in for the discounted route now demand more for their vessel’s valuable time.
The other Capesize routes couldn’t help but be influenced by the changing sentiment yet were less volatile in their movements. The Atlantic basin continues to suffer from a lack of cargo, yet the market seems eager for the region to spark into life. At $31,690 the Transatlantic C8 is a far cry from the Pacific levels. Moving into the new week, effects from the typhoon are expected to lessen as order begins to be restored. Whether that lowers market volatility remains to be seen.
Panamax
A tepid week for the Panamaxes with limited activity, resulting in softer rates overall as weaker sentiment kicked in. The Atlantic witnessed the largest falls, with activity primarily led by grain trading ex North France and the Black Sea as the season continued in full flow. But this demand alone was insufficient to stem the losses as nearby tonnage continued to build against slender demand. An 80,000-dwt achieved $49,500 delivery Aps North France for a grain trip to China. EC South America was largely subdued as first half August arrivals were forced to discount in order to fix. This in turn failed to rally an ailing Pacific market lacking in momentum aside from the short Indonesia coal trips which remained fluid on the week, route P5 averaging $29,400 overall this week with limited movement. Period activity was restrained but did include an 86,000-dwt delivery China fixing $31,650 for three to five months employment.
Ultramax/Supramax
Overall a week of positive gains as sentiment remained strong in many areas although it was a gentler push, some brokers commented. Period activity was seen with a 56,000-dwt open West Africa fixing for four to six months trading redelivery Atlantic at $33,500. Elsewhere a 63,000-dwt open Arabian Gulf fixing a similar period at close to $40,000. Demand from the Mediterranean kept rates solid. An Ultramax was heard fixed basis delivery Canakkale via Black Sea redelivery west Africa including Nigeria at $50,000.
Activity levels tempered from east coast South America, but for trips from West Africa to China a 57,000-dwt was heard fixed in the mid $40,000s. Asian activity saw a 52,000-dwt fixing an Indonesia to China run at $38,000, however limited fresh North Pacific activity was seen. The Indian Ocean was firm, with a 52,000-dwt open Paradip fixing via South Africa redelivery east India at $32,500. Whilst from South Africa for direction China Ultramax size were seeing around $30,000 plus $1 million ballast bonus.
Handysize
The continuation of positivity remains this week despite some negative moves in East Coast South America, where a lack of activity was attributed to the change in outlook. However, a 38,000-dwt was fixed for a trip from Recalada to west coast South America at $53,500. The Black Sea grains season is fully underway and a 39,000-dwt fixed from Egypt to the Caribbean at $39,000.
A 32,000-dwt open Italy was fixed via the Black Sea to the US Gulf at $32,000. The US Gulf has been active also with a 32,000-dwt open east coast Mexico via the Mississippi River to west coast south Central America at $35,000. In Asia, a 38,000-dwt open in CJK was fixed via Japan to Southeast Asia at $29,000 with steels. A 37,000-dwt open China fixed for one year redelivery worldwide at $25,000 and a 32,000-dwt Eastern Mediterranean was fixed for three to five months with redelivery Atlantic at $32,000.
Source: The Baltic Briefing