Sharp rises in FFA trading as the week closed out appeared to drive a physical market that had been languishing in the doldrums for most of the week with rates largely drifting lower. Rates from West Australia to China dropped to lows in the highish $6.00s but today fixed at $7.20 with charterers still there to fix. One of the majors reportedly fixed four vessels at this level for 6-7 September onwards and there was talk that maybe another agreed a slightly higher rate. A 10-year old 171,800-tonner open Kakogawa end August was to have agreed a tick under $18,000 daily for an Australian round.
Brazil trading slowed appreciably this week but there were still cargoes in the market to move for first half September with rates talked in the high $16.00s basis Tubarao/Qingdao. After hitting over $13.00s, rates from Saldanha Bay/Qingdao dropped to $12.65 mid way through this week. In the north Atlantic, transatlantic business was negligible at the start of the week but there was more interest shown as the week closed out with a few more cargoes in the market. The benchmark Puerto Bolivar/Rotterdam route saw rates talked on the mid $8.00 range but today sources said there was a charterer talking $9.00.
A sluggish week for Panamaxes, Kamsarmaxes and Post Panamaxes with rates drifting with the north Atlantic proving the weakest link. Slower demand for US Gulf and South America traders caused some jitters but as the week moved on and paper values increased possibly prompted by Cape gains steadied trading. An overaged 74,000-tonner agreed $11,000 daily and a $400,000 bonus for Cape of Good Hope delivery for a trip via east coast South America to the East. The Black Sea continued to see demand for grain with rates steady and tonnage limited. A Kamsarmax open Port Said fixed at $11,400 daily for Port Said via the Black Sea and Jordan with Port Said redelivery. Transatlantic rates took a hit early-mid week with charterers able to secure aggressive rates on voyage basis.
In the East, owners wanting cover before a long weekend conceded lower rates although there were still owners prepared to take the ballast option. A 2001-built 76,500-tonner open Shibushi did secure a rate in the high $9,000s daily for a NoPac round. Period fixing has been spasmodic but there was talk of a 2016-built JMU Kamsarmax fixing from China for about a year earlier this week at $11,750 daily.
Supramax / Handysize
Rates in both basins continued to rise this week but activity remained slightly flat. The US Gulf market maintained the last done and rates from east coast South America started easing towards the end of the week. Tonnage in the Pacific was reportedly tighter but lacking fresh cargo to lend further support. On the long period front, the Ever Progress 56,592-dwt 2012-built delivery Penang was booked for about one year at $9,150 daily redelivery worldwide.
In the Atlantic, a 63,000-dwt 2014-built was reportedly fixed at $13,750 daily plus a ballast bonus of $375,000 from east coast South America to the Far East at the beginning of the week, and a Tess 58 type went at $13,500 daily plus $350,000 ballast bonus for moving sugar from Santos to the Persian Gulf. A 63,000-dwt 2012-built delivery Progreso was paid $20,750 daily via the Mississippi River to redeliver in the Singapore-Japan range. A 53,000-dwt 2009-built was concluded basis delivery Chornomorsk for grains to Indonesia in the mid $16,000s with a minimum duration of 50 days guaranteed, and a 55,000-dwt 2006-built from Jorf Lasfar did a trip via Carboneras redelivery West Africa at $10,500 daily.
Rates slipped from east coast South America with some owners willing to discount, while brokers considered the market in the East firm with bigger-sized tonnage showing signs of improvement especially with Far East delivery. For short period fixtures, a 34,000-dwt was heard to have fixed at approximately $8,000 daily for about three to five months with delivery US Gulf.
A 35,000-dwt 2017-built delivery Stettin was booked for a trip via the Baltic to the Spanish Mediterranean at $9,250 daily. A handy ship was reported to have fixed out of the Black Sea at $14,500 daily for a trip to the Persian Gulf. A 34,000-dwt ballasted from the US east coast was booked basis delivery New Amsterdam at a rate in the low $8,000s to the Black Sea. A 29,000-dwt 2003-buit was paid $9,500 daily delivery Fazendinha for a trip to Morocco. A 34,000-dwt vessel was fixed at $8,200 daily from the US Gulf to redeliver in the western Mediterranean. A 2010-built 32,000-dwt did $7,250 daily for delivery Veracuz to the Continent and a 34,000-dwt 2010-built did a trip to Morocco at $8,000 daily delivery Coatzacoalcos.
In the Pacific, a handy vessel delivery Singapore was concluded for a trip via Australia to China with aluminum in the low $9,000s, and a 45,000-dwt was reportedly fixed via Australia back to the Far East at $9,000 daily delivery CJK.
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