An influx of fresh business in the North Atlantic, both transatlantic and fronthaul, highlighted the shortage of tonnage. Rates firmed sharply as the week drew to a close, a 170,000 tonne 10% cargo fixed from Seven Islands to Qingdao at $19.50 – a rate which some suggested showed a timecharter equivalent of $30,000 daily. Transatlantic rates too strengthened with a 177,000 tonner booked at $14,250 daily. Brazil has seen a slower paced rise in rates with today Tubarao/Qingdao around $13.70 but there still remained business in the market.
The East was largely well balanced and rates were steady to a touch higher with 170,000 tonne 10% cargoes fixed the West Australia to Qingdao around $5.70 and a 28 July cargo booked at $5.85. Timecharter rates too were healthier and a 171,000 tonner agreed $9,500 daily for an Australian round with Beilun delivery. The strong Atlantic market could tempt more owners to ballast which in turn should support Pacific rates. Certainly the stronger market has encouraged more period activity, a 181,000 tonner booked in the East for four to seven months trading at $14,750 daily.
South America remained the gift that keeps on giving for the panamax market with charterers still taking tonnage into August and beyond. This market has been pivotal, taking tonnage from the Indian Ocean area and south east Asia and from the North Atlantic. Rates here rose sharply but seemingly settled around the low $13,000’s daily and the low $300,000 bonus for runs to the East. However, there was a rumour a super eco 77,000 tonner reported fixed for mid-August at $14,000 daily plus a $400,000 bonus. Going forward charterers appeared to be soft peddling but a 60,000 tonne 5% grain cargo was booked at $24.00 with 2.5% address from Brazil to China for 15 August-15 September shipment earlier in the week.
North Atlantic tonnage for early positions has been thin and fronthaul and transatlantic rates here were strong with a kamsarmax fixing from Jorf Lasfar via the US Gulf to China with ddgs at $17,000 daily. Transatlantic activity included a 75,000 tonner open Lisbon fixing for a round voyage at $12,000 daily.
In the East, Indian demand for coal continued and this combined with a general increase in interest for Australia and some limited NoPac trading underpinned the market. Rates for 76,000 tonners for Australian/NoPac rounds hovered around $8,000 to $8,500 daily.
Period rates too improved with levels around the low – mid $8,000 daily range for short periods with delivery in the East.
Overall a very good week with rates on the up worldwide for the supramaxes and handysize markets. Going into next week the signs appeared still bright for perhaps more improvement. Charterers have again started to consider period with a ‘Tess 58’ type fixing for seven to nine months at $9,000 with delivery at Gibraltar.
Improvement in rates were evident for supramaxes ex US Gulf and one ship achieved $16,000 daily to Brazil with reports that trips Singapore-Japan have crept up to $20,000 daily or more depending on size.
Rates also improved for vessels only willing to give redelivery in the Atlantic. A ‘Tess 58’ type was understood to have been concluded at $17,000 daily basis delivery US Gulf for two laden legs redelivery Atlantic.
A ‘Crown 58’ type was booked from Egypt reportedly via the Black Sea to the US Gulf at $5,000 first 30 days with the balance at $11,000 daily – a significant improvement over last done. Owners continued to see more business being quoted and for a change can perhaps pick and choose what they do.
Demand remained strong from east coast South America with ships still being fixed from West Africa to cover these stems and vessels on the coast demanding much increased ballast bonuses. The short term outlook at the end of the week still in the positive going forward into next week. Hopefully the public holiday in Singapore today will not dampen the mood.
Handysize demand remained strong with rates especially from the Americas. Larger handies were able to command in the mid-teens for trips from north coast South America to the Continent. There too was healthy demand for vessels from the Continent where a 37,000 dwt vessel was said fixed basis delivery Continent for a trip via Brazil to West Africa at a good $9,500 daily.
Again a more positive feel in the East this week even with local holidays. Here supramaxes saw in excess of $7,000 daily for coal runs from Indonesia to India and ultramaxes seeing in the high $8,000 daily range for NoPac round voyages with delivery Singapore-Japan. Rates remained steady for handysizes. Midweek a 32,000 tonner fixed from Singapore for two to three laden legs with Singapore-Japan or Continent redelivery at $6,500 daily.
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