Bulk report – Week 49
The Capesize market peaked mid-week from its recent rally as the 5TC marked down -$1344 on the last day of the week to settle at $40,035. A tonnage tightness in several positions, particularly in the north Atlantic, led to gains early on in the week. However, sustained downward pressure from the Pacific and Ballaster routes took its toll as the week progressed. The West Australia to China C5 closed out at $13.732. And while the route suffered substantial losses to end the week, there is said to be tightness on loading position in the nearby dates. The Transpacific C10 now rates $39,308, while the China Brazil China ballaster route C14 now rates at $27,268 to the Transatlantic C8 at a stronger $52,750. The Brazil to China C3 heading into next week will largely be focusing on loading dates in the new year. This will likely coincide with a slowdown coming into the Christmas holiday period, as various traders look to risk travel protocols to navigate perilous Covid rules in heading home for some long overdue family time.
The week began on a bright note for the Panamax segment with a positive and firmer looking market carried over from previous. However, this proved to be very short lived with both basins easing. The support had ebbed away with Charterers now taking a firm hold on the market. The Atlantic saw tonnage build up in most areas. And, without any distinct enquiry, rates had to give and duly obliged. Committed ships agreed to APS levels equivalent to sub index rates basis DOP delivery only applied further pressure. A 82000-dwt delivery Rotterdam agreeing $36,000 for an EC Canada round trip midweek. Asia followed a similar pattern. The south of the region began brightly as Atlantic demand lent some support. But again insufficient NoPac/Australia demand proved to be the catalyst for further corrections in the market. An 87000-dwt delivery South Korea fixing $23,000 for an EC Australia round, typifying the softer market.
A positive week overall with most areas seeing stronger demand. More enquiry appeared from key areas such as the US Gulf and Indonesian coal demand was up putting pressure on rates. Period activity was seen, with Ultramax size open China fixing in the mid to upper $20,000s for one year. In the Atlantic, a 63,000-dwt from the US Gulf fixed 10/12 months trading redelivery Atlantic at $30,000. From the Atlantic, increased activity from The Continent saw 57,000-dwt fixing a scrap run to the East Mediterranean in the upper $30,000s. From the US Gulf a 55,000-dwt was heard to have fixed a run to the Black Sea in the high $30,000s. In Asia, pressure for prompt tonnage saw a 63,000-dwt fixing delivery Philippines via Indonesia redelivery China at $33,000. On backhaul runs from Asia, a 55,000-dwt was fixed for a trip to the Black Sea at $20,500. All eyes on the upcoming week to see if this momentum will continue.
Some small rises on the BHSI with positive sentiment in Asia and parts of the Atlantic. A 28,000-dwt open in Vietnam was fixed for a quick South East Asia round trip at $20,000. The US Gulf region has seen more cargo enquiry. A 39,000-dwt rumoured to have been fixed for a trip to New Zealand in the low $30,000s. In East Coast South America the market remains firm with a 38,000-dwt fixing a trip from Brazil to North coast South America in the low $40,000’s. A 34,000-dwt open in Northern Europe was fixed for a trip via the Baltic to the Western Mediterranean at $32,000. A 34,000-dwt open in Otranto fixed via the Black Sea to Tampa-Vera Cruz range with an intended cargo of steels at $29,000 and a 37,000-dwt open in Turkey was fixed for a trip to North Coast South America – East Coast South America range at $29,000.