Another week of drifting rates in all areas of the market. On the active West Australia/China run rates fell to the very low $4.00s for 4 August onwards cargoes but still no certainty yet that the market has reached a floor. Timecharter activity was negligible although a 12 year old 177,000 tonner open north China reported fixed earlier this week for a trip from Indonesia to India at $4,250 daily.
Rates for mid-August 170,000 tonne 10% cargoes from Saldanha Bay to Qingdao dropped to $6.75. Brazil rates too fell significantly over the week with $9.00 agreed from Tubarao to Qingdao but some brokers claimed that business fixed from other load ports equated to under $9.00 based on Tubarao. However, the 182,503 dwt 2016 built Mount Hermon fixed with K-Line for passing Cape of Good Hope delivery for a trip via Brazil to the East at $9,500 daily plus a $425,000 bonus, a rate some said equated to $9.25. Brazil/Continent rates continued to slip with an 11-15 August 170,000 long ton 10% fixed from Tubarao to Rotterdam at $4.23. Front haul trading from the north Atlantic slowed although a 180,000 tonner 2009 built was rumoured on subjects from Ijmuiden via Narvik to the Persian Gulf at $12,500 daily.
After sustained increases the market turned lower as the week progressed with the momentum particularly in the north Atlantic slowing. The pace slowed front haul and today a kamsarmax open Rotterdam was said on subjects for a trip via Murmansk to the East at $11,500 daily. Transatlantic cargoes were depleted and little fresh even for short haul. A 76,000 tonner fixed and failed from Amsterdam via the Baltic with Gibraltar-Skaw redelivery at $8,750 daily.
There was a touch more interest from the US Gulf to the East but it seemed there were more Chinese-controlled ships ballasting to the area to take Chinese-bound cargoes. A panamax allegedly went at $11,500 daily plus a $275,000 bonus for mid-August with a major grain house. Every week brokers talk of South America slowing but there were still fresh cargoes in the market and rates holding steady. A truckers strike in Argentina which started earlier this week tied up 120 vessels in port, but has now been resolved.
In the East, charterers talked the market lower for much of the week but rates held fairly steady although fewer fresh cargoes were quoted in what has been busy Indonesian trading. North Pacific cargoes slowed and here some ships rated lower numbers particularly post panamaxes. A 2016 built 85,000 tonner open Pusan agreed $7,850 daily for a NoPac/Taiwan cargo. Period activity slowed as paper values eased but an 82,000 tonner open Haldia fixed for nine to 12 months trading at $7,350 daily.
A busy week for fixtures with the Asian market proving to be the more resilient and levels continued to move upwards. It was not all doom and gloom for the Atlantic players but the slide for most deliveries was apparent. Period played a role this week with talk of a new building 61,000 dwt having been covered for three years at $7,250 daily. Shorter periods included a 56,000 dwt delivery Alexandria for four months $9,000 daily with redelivery Singapore-Japan range. Other fixtures mentioned all gave Far Eastern deliveries, a 57,000 dwt fixed seven to nine months at $6,400 daily and two 56,000 tonners concluded three to five months at $7,400 and $6,900 daily.
Black Sea to East Africa paid $9,250 daily with Durban as the redelivery for a 60,000 dwt vessel. A 54,881 dwt secured $11,750 for a trip delivery US Gulf to Japan. A Tess 58 covered delivery US Gulf trip west coast central America at $15,250 daily while a 56,000 dwt secured $14,250 with Peru the destination. Upriver to Italy went at $7,500 daily with a 55,000 tonner while a smaller 52,000 tonner went at $8,500 daily plus a $90,000 ballast bonus delivery Rio Grande trip Singapore-Japan. The Tern 2003 built 50,209 dwt fixed delivery Tema trip India at $8,250 daily.
The extra amount of nickel ore, sand, coal and steel cargoes assisted the area to nudge rates north. A Tess 58 fixed delivery Ho Chi Minh for a trip via Kosichang to Chittagong at $9,250 daily while a nickel ore cargo paid $8,000 daily on a 56,600 dwt delivery China for a Philippines round voyage with a few more cargoes also gone around the same level. A 2011 built 56,785 dwt vessel went delivery Singapore for a trip via Indonesia to China at $7,500 daily while a similar size fixed at $7,000 daily for redelivery west coast India. Today the Magia 2014 built 57,586 dwt was linked to another coal cargo with delivery Singapore for a trip via Indonesia to south China at $8,400 daily. A steels run was linked to a 45,000 dwt with delivery CJK trip redelivery Thailand at $5,300 daily. A larger 53,500 tonner also took steels this time delivery Ganyu trip via Chittagong with Penang as the redelivery at $6,500 daily.
A daily increase in the Asian indices and better levels assisting owners’ balance sheets. The Index routes for Continent and Mediterranean fared well recording daily increases with a distinct lack of tonnage available in some areas. A 34,650 dwt was booked from Murmansk for a trip to Brazil with fertilizer at $8,500 daily. Brokers reported a scrap cargo fixed with a 34,409 dwt delivery Continent trip to eastern Mediterranean at $8,000 daily.
Intermed/Black Sea business seemed to be moving around the $7,000-$7,500 levels while a good 37,000 tonner achieved a healthy $8,500 per day for a trip from the Black Sea to the US Gulf. Two trips were reported fixed delivery US Gulf to the Continent, one 32,000 at $8,000 daily for a prompt delivery and another 32,500 dwt at $7,500 daily.
There was talk a 39,000 tonner was on subjects for Recalada to Tunisia with grains in the region $8,250 daily. In the East, a 34,000 was linked to a trip delivery Singapore via Australia to east coast India at $7,500 daily. Some period talk which could not be confirmed circulated about a 37,000 dwt accepting $6,350 for four to seven months delivery China.
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