Latest Chinese economic woes appeared to have undermined the brief positive sentiment for the big ships. Despite active chartering from most of the major Australian miners, rates fell each day on the key west Australia /China run with rates hovering around the mid $5.00s. Timecharter rates in the Pacific also dropped from the mid teens earlier in the week to about $11,000 to $12,000 daily. Spasmodic Brazil activity was evident but charters chased rates lower with Tubarao/China now under $13.00 while Saldanha/Qingdao levels were significantly under $9.00. Further north in the Atlantic both fronthaul and transatlantic trading was limited. Rates from Puerto Bolivar to Rotterdam were struggling to hold around $7.00 while a 171,000 dwt 2001 built vessel fixed earlier from Hamburg via Seven Islands to China at a rate in the low $20,000 daily range.
South America remained the driving force in the market with some support from increased grain shipments from the US Gulf. Charterers were still sourcing Brazil and Argentina loaders from the Indian Ocean area and Southeast Asia with some respite for north Asia vessels eyeing US Gulf load. Rates for early September loaders from South America were at a premium with a 76,000 tonner coming from India achieving $10,000 daily for a trip to the East. Rates for ships coming from North Asia were seeing rates in the $8,000s daily range depending on descriptions. However ballasters could undermine gulf rates for October. Currently ships from the gulf heading east have seen rates at $14,000 daily plus $400,000 bonus. Longer Pacific round rates for average vessels were hovering around the mid $6,000 to $7,000 daily with premiums for well described vessels. The offtake of ships for South America cargoes has helped support rates in Southeast Asia with rumours a 76,00 tonner was booked for a quick Indonesian round at $8,000 daily.
Another good week especially in the Atlantic where all the index routes pushed up for both the supramax and handysize.
Yesterday the BSI 6TC average was at $9,663 which is the highest value to date this year. In contrast to the low this year of $5,002 on 18 February.
There were a few period fixtures with a 57,981 dwt 2011 built vessel fixing to Cargill delivery CJK for three to five months at $8,250 daily and talk of a 58,729 dwt built 2008 fixing delivery Singapore prompt for 10/15 months at $8,000 per day with a reduction for the first month. A Tess 52 type fixed delivery Liverpool for four to six months at $11,500 daily and the Santa Julia a 55,710 dwt built 2009 securing $12,000 per day with an East Mediterranean delivery for three to five months. A Tess 58 having failed for short period delivery in the US Gulf at $13,600 daily managed to re-fix to another charterer at $450 a day more.
Ultramax size vessels played a part this week with the Star Fighter 61,455 dwt 2013 built fixing delivery Port Said for a trip via Spain/Cape of Good Hope with redelivery China at $14,000 daily. The Hanjin Iwagi built 2014 61,411 dwt $15,750 daily delivery Rio Grande for two laden legs redelivery worldwide.
A 63,000 dwt rumoured to have concluded at $8,000 for trip delivery Jubail to New Zealand.
The Hanjin Seto 61,422 dwt built 2012 fixing delivery China for NoPac round at $9,000.
The handysize market for east coast South America has witnessed a fair amount of activity with rates for trips to west coast South America reaching $19,000 daily for a 2014 built 34,446 dwt vessel, while a coastal trade went at $16,500 daily for a 28,734 dwt vessel.
Activity seems to carry forward into next week with a number of negotiations on going and ships waiting for subjects today.
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