The market was dormant for the first half of the week and while it had woken up somewhat by the end, levels are still dire.
Minimal changes across all the routes with the two main ore voyages from Brazil and west Australia closing at a few cents under where the levels were last week. Currently Tubarao rates are fixing around the $5.75 level and $2.85 seems to be the conference rate for loading West Australia. Timecharter fixtures are less frequent or maybe just not being reported, with a Pacific market valued at under $2,000/day.
There was talk of some period fixing during the week – the Hero 178,076 built 2010 open Caofeidian spot was said to have fixed six to eight months with the rate 105% of the Cape 4TC average + 5%. The other fixture was on a new building Olympic Hope or Olympic Harmony (180,000 dwt sisters) ex JMU yard April, said to have been for about 12 months with the rate 119.5% of the Cape 5TC and a $3,000 floor to apply with Sinochart.
Lunar New Year celebrations where in full swing this week, which led to a quiet market. However this did not seem to have dampened the little green shoots growing slowly throughout the week and it will be interesting going forward with the return to work stations next week if this will continue or wither.
The main centre of activity was around the east coast south American market. With increased cargo volumes, ships have now been sourced from south east Asia. A 74,000 dwt 2005 built was taken basis retro sailing Singapore for a trip via east coast south America redelivery Singapore-Japan. From the Atlantic a 77,000 2015 was reported to have got $6,750 plus $175,000 ballast bonus basis aps delivery for a trip to Far East. Unsurprisingly with a steady stream of fixed tonnage coming into the South Atlantic it has been reported that delays are building up.
In the Pacific there was very little activity. Some thought rates were improving slightly mid-week where dop rates could be achieved. A 77,000 dwt 2014 built was concluded basis dop Hong Kong for a trip via east coast Australia redelivery east coast India at $3,400 for the first 45 days and $3,600 daily for the balance. However, some participants are now a little unsure if dop rates are achievable moving forward.
Period activity remained on the backburner at the beginning of the week. An 81,600 dwt 2014 built was taken basis retro Singapore for four to seven months worldwide trading at $5,350 and a 75,600 dwt built 2000 basis PMO delivery for short period at $4,000. Later in the week nothing was being reported but brokers did suggest that owners are now holding out for better levels.
The Chinese New Year holidays resulted in a minimal amount of business being concluded within the Pacific basin.
There was a knock on effect to the Atlantic with brokers struggling to find firm business to fix. The BDI at last stopped going down on Thursday 11th February but only managed to be unchanged at an all-time low of ‘290’.
The US Gulf witnessed a few fixtures this week. One 62,657 dwt vessel fixing for trip to Singapore-Japan at $6,500 daily. A slightly smaller 61,485 dwt covered trip to India at $7,300 daily and a 54,000 dwt secured $6,500 daily for trip to west coast central America. Cargill fixed a 56,000 dwt basis delivery Recalada for a trip to Bejaia at $4,500 daily while two Ultramax vessels fixed the same delivery, one to Skaw-Passero at $4,350 daily and the other to Singapore-Japan at $6,900 daily plus a $70,000 ballast bonus. A 57,000 dwt Dolphin type was linked delivery Marmara trip to West Africa at $2,250.
In the Far East there was little to discuss with regard to fixtures. Brokers did report a Dolphin 57,000 dwt fixing $1,800 delivery South Kalimantan for a trip to Hong Kong and Tess 52 covered delivery Singapore for a trip via Kwinana with grains to South Korea at $1,950 daily.
A few handysize fixtures were shared this week but overall not much information was gathered on these sizes. Cargill paid bunkers only for a 39,821 dwt vessel delivery Casablanca trip upriver Plate but after 30 days owners would receive $3,500 daily. A trip delivery Black Sea to the Continent paid $2,000 daily with a 32,626 dwt vessel. A Danish account secured a 37,000 dwt ship delivery Aalborg for a trip to the US Gulf with cement at $3,500 – sources advised the rate was slightly higher because of the cargo. The Glorious Saki 37,154 dwt built 2012 concluded a trip delivery US Gulf to UK-Cont with wood pellets at $3,500 daily.
Only one time charter fixture surfaced from the Far East: the Obrovac 34,439 dwt built 2010 delivery China trip US Gulf $2,050 for the first 60 days and $3,250 for the balance.
Period requirements remained virtually non-existant for both the Supramax and Handy sizes and another week went past without a reported fixture.
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