Rates dropped speedily this week and even allowing for much lower bunker prices it remained difficult to see how much further rates could fall. There was a rumour that $6.05 has been done for a 170,000 tonne 10% cargo from West Australia to Qingdao – a week ago the market stood at $7.60. Timecharter rates took a hit with a 180,000 tonner open Tianjin booked for an Australia round at $7,500 daily if South China redelivery or $8,500 daily for the north. Last week these ships were achieving $15,000 daily.
The Atlantic too was equally gloomy with a 150,000 tonne 10% cargo from Bolivar to Rotterdam booked at $7.15 – a one dollar drop in 24 hours. Timecharter rates were also slashed with a 179,000 tonner open Amsterdam fixed for a transatlantic round at $9,000 daily – the rate was almost double this at the end of last week.
Brazil/China trades remained very slow with rates here little more than $16.00.
The pace slowed in the Atlantic in what has been a strong market for ships on the Continent. The short rounds for tonnage northwest Europe made gains and the longer rounds saw rates hovering, nudging $11,000 daily. However the list of tonnage coming open lengthened with the cargo supply dwindling and not replaced.
There has been a steady pace from the US Gulf to the East with more December cargoes creeping into the market. Rates were holding at reasonable levels with a 75,000 tonner fixed for 18 December onwards from the Gulf to the East at around $15,250 daily plus a $525,000 bonus. However there was little activity from the South America with charterers seemingly side-lined.
The East saw rates slip with fresh business quickly absorbed and the list of prompt tonnage still growing. A 75,000 tonner open Ube went for a NoPac round at $8,500 daily while the recent premiums for India business were being eroded. Period business remained in short supply as charterers watched the spot market slide.
There has been a better feeling in South America with increased enquiry and more activity as a result. A 58,000 dwt fixed a trip from Brazil to South East Asia at $13,300 daily with a bonus of $330,000 and a 61,000 dwt ultramax type fixed a similar trip with redelivery Singapore-Japan at $13,500 daily plus $350,000 bb. Rumours of a higher level being concluded were not confirmed. Following strong moves seen in the US Gulf last week, a sense of an easier tendency has crept into the market this week. Earlier in the week a four year old 58,000 dwt agreed $17,000 daily for a trip US Gulf to Italy. A 56,000 dwt, open Brownsville fixed from there for a trip to Spain in the mid $13,000s.
The Pacific has been solid through the week with a good volume of enquiry from Indonesia. The north Pacific has also been positive, a 61,000 dwt built this year open north Japan was said to have gone for short period at $12,000 daily.
From South East Asia, trades were concluded with 57,000 tonners fixing around $13,000 daily for trips via Indonesia to EC India. Otherwise in the handysize category a 34,000 tonner, open Singapore, secured $8,400 daily for a trip via EC Australia with re-delivery Indonesia.