A positive end to the week for the big ships with rates up. The key West Australia/China rate finished the week at around $4.60 for 170,000 tonne 10% cargoes from Dampier to Qingdao. The peak of trading on this run was mid-week with the majors active, but their interest ebbing away as the week closed. An fuel economical 171,000 tonner 2007 built open Lianyungang allegedly agreed $7,500 daily for west or east coast Australian round – a rate some said equated to $4.90 for a West Australia cargo. Today came a report that a 2010 built 180,000 tonner fixed from Samcheonpo for an Australian round at $8,000 daily with GNS.
Fewer ships have headed off in ballast towards South Africa and Brazil which began to impact on rates this week. Today Cobelfret took a SwissMarine vessel for a Tubarao/Qingdao cargo at $9.60 with rumours also that $7.25 has been agreed for a cargo from Saldanha to Qingdao.
Further north there was the sense the market wanted to push on but today both charterers and owners were a touch ‘stand-offish’. There was talk that a charterer claimed to have tonnage in at $5.20 for a Puerto Bolivar/Rotterdam cargo.
A stronger close in all areas of the market with South America rates pushing but again with the question how long will this last? A 2012 built kamsarmax allegedly agreed $8,000 daily plus a $300,000 bonus for about 18 July delivery east coast South America to the East.
Early Thursday morning this rate was closer to mid $7,000 daily and mid $200,000s. Owners too have been able to achieve dop rates or passing the Cape of Good Hope. Further north tonnage remained tight and improvements were evident too in the US Gulf. An 80,000 tonner agreed $10,000 daily for Gibraltar delivery for a trip via Kamsar to the East and an 82,000 tonner for 20-30 July delivery US Gulf fixed a $11,200 and a $265,000 bonus to the East. Transatlantic rates were hovering around $5,000 to $6,000 daily depending on the ship’s specification.
Asia rates too have improved with increased interest for NoPac rounds and a stronger US Gulf market tempting owners to ballast. Rates for eco ships were around the mid $5,000s to $6,000 daily for NoPac rounds and increased period interest could also underpin the spot market. Owners with eco kamsarmaxes were looking to fix at least in the mid $6,000s and more for period up to one year.
Despite the shock of the much talked about Brexit result, the supra and handy dry sector continued its steady gains over the week with green shoots resolutely sticking to the page. Gains mainly being made in the US Gulf and east coast South American areas, but as the week progressed this also was beginning to spread across all areas including south east Asia and the Far East. As a result of this, more encouraging period fixtures came to light. The Yangze 8 2015 built 63,515 dwt open China was covered on short period for about four to six months at $7,000 daily, the charterers involved being Pacific Basin. On the handysize there was talk that a 33,000 dwt open in China was also covered for short period in the low $5,000s.
Some stronger numbers being achieved from the US Gulf market, the Ilia 2009 built 58,018 dwt was fixed at $9,000 daily basis delivery Key West for a trip via the US Gulf and India with redelivery passing Durban. Later in the week we saw the Great Fortune 2015 built 63,497 dwt fixed basis delivery US Gulf prompt for a fronthaul at close to $16,0000 daily. From east coast South America ultramaxes where joining the band wagon, the Mackenzie 2016 built 63,226 dwt covered basis delivery Santos trip redelivery India-Japan at $12,000 daily + $200,000 ballast bonus. From across the pond it was a bit slower, but towards the end of the week brokers felt more positive for vessels open from the Continent / Mediterranean areas going into next week. A 58,000 was covered basis delivery Garrucha for a trip redelivery West Africa excluding Lagos at $7,000 daily.
From Asia backhaul rates looked more attractive. A 55,000 dwt was understood being covered basis delivery Yantai for a steel run at close to $4,000 daily. For inter Asian market a 56,000 dwt open China was reported covering a steels cargo with redelivery Vietnam at $6,400 daily. The Ikan Salmon 2012 built 61,115 dwt was reported fixing basis delivery Cigading for trip via Indonesia redelivery Thailand with coal at $7,500 daily. More movement of nickel ore appeared this week with a supramax open China achieving in the low-mid $6,000s for the round via Philippines.
Not wholly surprising, of all the sizes this remains the least talked about. Brokers feeling that it remained ‘steady as she goes’. It was a little quiet from the Continent with rates remaining steady, however the Lord Wellintgon 2005 built 31,921 dwt open UK-Cont was fixed for a trip via the Continent redelivery Persian Gulf excluding Iran / Iraq at $9,500 daily. From the Mediterranean a 32,000 dwt was rumoured covered in the $4,000s for a trip to the Continent and for trips across to the US, rates seemed to be hovering around the low/mid $3,000s depending on vessel specs and position. From Asia rates improved slightly with a 28,000 dwt 2015 built open Singapore understood to be covered for a trip via Mauritius redelivery Durban in the low $5,000s, whilst a similar size vessel was rumoured basis delivery China redelivery West Africa in the upper $4,000’s for the first 50 days and mid $5,000s for the balance.
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