A largely flat week for capesizes with rates in the East moving in a narrow range on voyage basis. There were some improved numbers reported for timecharter but again the trading remained somewhat erratic. West Australia/China rates from Dampier or Port Hedland hovered around $5.10 to $5.15 while a 176,000 tonner open CJK prompt fixed for a West Australia round at $7,000 daily. Trades from the East to the Atlantic largely remained under wraps but a 150,000 tonne 10% coal cargo was reported fixed from east coast Australia to the UK at $9.85 – a rate equating to plus return on timecharter over 75 days. The Saldanha/Qingdao rate dropped sharply by the end of the week with a Cargill vessel fixing an end June cargo at $7.65.
The Brazil/China rate came under downward pressure with Bunge booking an 11-20 June 170,000 tonne 10% cargo from Tubarao to Qingdao at $10.50 while an end June-early July 170,000 tonne 10% cargo fixed from CSN to Qingdao in the low $11.00s. Transatlantic rates remained uninspiring with still spot ships and 178,000 tonner open Gijon agreed $4,350 daily for a trip via Colombia to the Continent. A voyage rate was agreed from Puerto Bolivar to Rotterdam but that business failed and a ship was fixed based on the BCI C7 for the business.
South America remained the focus of activity with charterers paying firmer rates for June loaders. As rates dropped in recent weeks for cargo from east coast South America, some owners stopped ballasting helping to create this shortage. A kamsarmax open Pecem was rumoured booked today for Paranagua delivery for a trip to the East for a 17-20 June cargo at a stronger $12,250 daily plus a $225,000 bonus, while an 84,000 tonner agreed $9,800 daily plus a $280,000 bonus retroactive to passing the Cape of Good Hope for east coast South America allegedly to southeast Asia. Rates for grain cargoes on voyage basis too were talked higher with charterers allegedly talking around $23.50 for Santos to north China. Transatlantic activity remained negligible both on voyage basis and timecharter.
In the East, there was a long list of ships coming open in north China and although there was fresh business, rates struggled to maintain at current levels particularly for the longer north Pacific rounds. A kamsarmax fixed for a 20-30 June cargo aps NoPac for the run east at $4,950 daily plus a $235,000 bonus. A 76,600 tonner open open Hachinoe agreed $5,250 daily for a NoPac round. However with more owners now willing to ballast to South America this could relieve some of the pressure, prompting some slight improvement in sentiment.
A week of marking time for the supramax sector as the market continues to stumble along at mainly uninspiring levels, with the occasional pocket of resistance here and there. In the US Gulf, a 2004 built 55,600 dwt vessel was fixed when where ready Mississippi river for a trip to Singapore-Japan range at a steady $12,000 daily. On this side, there was a flurry of general activity in the Black Sea including grain enquiry to the east. A 2010 built 57,000 dwt ship was reported to have been fixed for such a trip with grains also to Singapore-Japan range at $8,600 daily.
In the East, the south-east Asian markets nudged upwards with reports of a 2013 built 53,500 dwt ‘Diamond’ type giving delivery Singapore being booked for a nickel ore trip via the Philippines to China at a rate in the ‘high $7,000’s’ daily. Further north a nice 2015 built 61,300 dwt ‘Ultramax’ was reported to have been fixed with delivery NoPac mid-end June for a trip to Singapore-Japan at $8250 daily plus a ballast bonus of $225,000.
The handysizes continued to struggle. In the Atlantic, a 2009 built 37,300 dwt ship was booked delivery US Atlantic for a trip to the Continent with wood-pellets at $6,000 daily. In the East a 2000 Japanese built 28,300 dwt ship was reportedly fixed delivery Japan for a trip via south-east Asia with redelivery south Korea at $3,750 daily.
For daily dry bulk assessments from the Baltic Exchange please visit www.balticexchange.com/market-information/