The promise of a positive final quarter has failed to materialise with rates sharply weaker for capesizes in all areas of the market. There has been a good volume of ore cargoes in the East but coal volumes were low leaving an imbalanced market. Today one of the major miners fixing a 30 October onwards cargo from Dampier to Qingdao at $4.80. Rates for moving ore from Saldanha to Qingdao dropped to under $9.00 while charterers were pushing for rates to slip below $11.00 for 170,000 tonne 10% cargoes from Tubarao to Qingdao. Timecharter activity was limited although a 1995 built 173,000 tonner fixed from CJK prompt for a Peru option Brazil round voyage at $9,250 daily. Visible north Atlantic trading remained limited and rates here were under pressure. A 150,000 tonne 10% coal cargo fixed from Drummond to Sines at $4.50 with an option of Rotterdam discharge at $5.75.
Panamax rates too were lower and after holding at least steady last week rates fell for Pacific traders. Owners were discouraged from ballasting to the US Gulf where hopes last week of more cargoes failed to materialise and delays mounted for Panama Canal transit. South America also offered little opportunity and more ships coming onto the market willing to trade locally. Average panamaxes were struggling to achieve $6,000 daily for Japan-South Korean delivery for NoPac rounds while a 74,000 tonner open Machong agreed $6,000 daily for a West Australian round. A panamax open Singapore reportedly agreed $5,000 daily for an Indonesia/Hong Kong run.
In the US Gulf an 81,500 dwt 2015 built vessel agreed $12,750 daily plus a $275,000 bonus for a trip to the East with grain – falling sort of expectations at the end of last week. The voyage rate too dropped with a 60,000 tonne 10% hss cargo for 5-14 November fixed from the US Gulf to China at under $30.00. South America rates too were lower with charterers able to secure modern kamsarmaxes for Cape of Good Hope delivery for trips via Brazil to the East at $7,000 daily and a bonus significantly under $200,000.
Brokers were reporting markets still struggling to have any forward momentum. The BSI and the BHSI showing minimal changes over the week
Period fixing was virtually non-existent although a 63,000 dwt basis was reported delivery Bilbao for five to seven months at under $9,000 with Far East redelivery – down on rates achieved during the summer.
This week has seen a 63,800 dwt fixed at $8,000 daily for a trip delivery Sheerness via Baltic redelivery Continent. A 54,123 dwt went at $10,750 daily for delivery Gibraltar via Continent redelivery PG. There were reports a 58,470 dwt vessel was paid $9,000 daily from the Continent to Red Sea redelivery Port Said. A few fixtures came to light from Black Sea with a 2011 built 56,623 dwt vessel booked delivery Canakkale redelivery Chittagong at around $12,000 daily and the Pannonia G 57,673 dwt rumoured fixed to Black Sea/Seattle-San Francisco Range with steels at around $9,000 daily with Tuzla delivery.
The east coast South America market remained active with rates now in the region $11,500 plus $150,000 ballast bonus for trips to the Far East – reportedly paid to a 61,388 dwt vessel. A Tess 58 secured $9,500 daily for leg into eastern Mediterranean including Lebanon.
The US Gulf was still the place to be with the Bulk Patagonia 58,723-dwt concluding business to India at $15,250 daily.
As expected the eastern markets after the various holidays have had a much more active week. A selection of fixtures include the Achilleas S 58,018 dwt delivery Subic Bay for trip via Philippines to China at $7,000 daily.
A 54,000 dwt fixed to Bangladesh with a China delivery at $7,500 daily. The nickel ore trade saw two fixtures – one at $5,700 and the other at $6,000 both with delivery China for an Indonesian round. Backhaul for a 60,100 dwt paid $5,250 daily for first 75 days with $8,000 balance delivery Singapore redelivery Continent.
The mid-sized Nemo 1999 built 49,361 dwt agreed $2,000 a day for back haul from the PG to the US Gulf hoping for better trading opportunities there.
A healthy $9,500 daily was paid to a 35,283 dwt vessel delivery Skaw via the Baltic with redelivery east Mediterranean with timber. The IVS Triview 32,282 dwt fixed at $6,500 for delivery Skaw for trip to Spain.
From east coast South America a 2012 built 33,889-dwt fixed Recalada for coastal business up to Brazil at $7,500.
In the East a modern 2015 built 28,300-dwt fixed delivery Singapore for an Australia round at $4,500 daily. The New Laurel 31,025 dwt built 1999 fixed north China to South East Asia at $5,000 daily. The St. Andrew 32,751 dwt 2010 built fixed ex dry dock Hong Kong spot for a trip via south China to Indonesia at $6,000 daily. Last but not least there were reports of a 28,000 dwt fixing delivery NoPac for trip back to Far East at $5,000 plus a bonus of $130,000.
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