The BDI moved closer to a record low leaving many wondering where it would end, but the BCI still has some way to go closing the week at 809. The West Australia/Qingdao rate closed out the week at $4.60 with BHP Billiton fixing a couple at this level for a Port Hedland/Qingdao cargo, a week ago this rate recorded gains and was over $5.00. Rio Tinto allegedly fixed a Dampier/Qingdao cargo at $4.60.
Anglo American fixed a 25-30 November 170,000-tonne 10% cargo from Saldanha Bay to Qingdao at just $6.50. However, there was one area with charterers pressed for position with a 176,000-tonner fixed spot Dalian for an East Coast Australian round at $9,000 daily, but a charterer was not disclosed. The number of ballasters heading towards Brazil continued to overwhelm and rates took a dive with Vale securing tonnage from Tubarao to Qingdao at $8.80-8.90, there is further talk of a vessel fixing $8.50 but no other details have emerged. Further North the Bolivar/Rotterdam rate for 150,000-tonnes 10% dropped to $4.90 for end November-early December loading. Timecharter trading remained negligible and rates were little more than the mid $5,000s daily for the round voyage.
Rates were down in all areas of the market with most suggesting it was difficult to find a tunnel let alone a light at the end of it. Those in ballast from Southeast Asia and the Indian Ocean area faced failing rates for South America cargoes, with the rate for a 76,000-tonner giving passing the Cape of Good Hope delivery dropping to the low $6,000 daily range and around $170,000 daily. A kamsarmax due Recalada 15 November fixed for a trip to the East at $9,000 daily, plus a $90,000 bonus. Further North, rates from the US Gulf to the East continued to drop with talk today that a 25 November-5 December 60,000-tonne 10% hss cargo from the US Gulf to China via the Cape of Good Hope at $25.00. Much of the transatlantic business available was being concluded on voyage basis at very low returns with some suggesting rates talked showed significantly under a $3,000 daily timecharter equivalent.
In the East fixing on a dop basis this week was the rarity. A 76,000-tonner open South China was on subjects for an aps East Kalimantan to China at just $3,000 daily, plus a $30,000 bonus. An 82,000-tonner open Marviles fixed for an Indonesian run to Southeast Asia at $3,750 daily while a 2000-built 74,000-tonner agreed $4,200 daily plus a $135,000 bonus for Vancouver to the East.
Period rates eased again with a 76,000-tonner open China rumoured booked for four to eight months trading around $5,600 daily.
How low can it go? Another week of negative numbers on the supramax and handy index.
Some period was being discussed with one 55,486-dwt vessel securing $6,000 daily for 10-14 months delivery Singapore. Rumours today an ultramax 63,000-dwt fixed on subjects for 8/13 months also delivery Singapore at $6,400 daily.
On the spot market supramaxes were still tending to fix under last done. This week a 58,000-dwt fixed Santos to North China at $10,000 daily, plus $105,000 ballast bonus. A 50,000-dwt covered an Itaqui cargo to the west Mediterranean at $8,600 daily. Tubarao/Continent paid $8,250 daily for a 55,500-dwt, with a similar size accepting $8,500 per day for a 50 day trip from Santos to the Mediterranean. The US Gulf market cooled with a 53,000-dwt fixed from Texas to Spain at $6,500 daily, while a 50,316-dwt concluded a trip to West Coast Central America delivery East Coast Mexico via the US Gulf at $10,000 daily. The US Gulf to Turkey paid $6,500 daily for a 50,458-dwt vessel. A Dolphin 57,000-dwt fixed Spanish Mediterranean to West Africa at $6,500.
The Far East witnessed the usual fixtures even though the mid-week Singapore holiday slowed activity slightly. A 2010 built 58,831-dwt took $6,800 per day, plus a ballast bonus of $100,000, for a NoPac trip back to the Far East. Philippines/India payed $6,000 on a 63,000-dwt, and a similar size fixed Mumbai/China at $6,500 daily. Back haul was discussed in the mid $2,000 to $3,000 daily level for an initial period of 70/80 days.
In the smaller size range there was a reasonable amount of reported fixtures for a change. A 38,000-dwt fixed at $5,250 per day for Savannah to the Continent. A slightly smaller 34,735-dwt concluded at $4,750 for the same trip while from North Brazil to USEC a 28,700-dwt vessel went $5,000 per day.
Three vessels reportedly accepted levels around $6,750 to $7,500 daily for Baltic to East Mediterranean scrap cargoes. The Continent to West Africa paid $6,450 daily for a 38,000-dwt. Black Sea/East Mediterranean trades were paying $5,750 to $6,000 levels. This week one Owner with a 35,500-dwt vessel confirmed $3,500 Canakkale to the Egyptian Mediterranean.
With the end of 2015 just under seven weeks away brokers feared the year will end on a downwards trend. Any upturn will really need to be seen within the next two weeks.
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