Vale dominated the news for the big ships, with reports Brazilian miners took 20 ships, or more, for August positions from Tubarao to Qingdao. Some were concluded the previous week, but rates paid as the week closed out were in the low $24.00, but without brokerage. Others in the market with cargoes to move finally started taking tonnage, with rates rising to $24.80 for end August-early September positions. As rates climbed, more owners were prepared to commit to the Brazil market. Further north, there was fresh Atlantic inquiry, and with tonnage in tight supply, there were those expecting potential gains. As the week closed out, transatlantic cargoes were fixed on voyage basis equating to the upper $20,000s to around $30,000 daily, depending on delivery and redelivery. In the East, only one of the Australian miners regularly took tonnage, with Rio Tinto paying a few cents shy of $10.00 for 170,000-tonne 10% cargoes from Dampier to Qingdao. Fresh business was quoted on the BCI C5 run today, with reports that a charterer paid over $10.00, but this could not be confirmed. With paper values very strong, period interest was well supported, especially for short period. A 2014-built 181,000-tonner open Qingdao, went to Jera for six to eight months trading at $28,000 daily or a tick under.
Rates came under pressure across all regions, and even NW Europe/Baltic, which had been the mainstay of the Atlantic market. Owners/operators with ships who opened there early in the week achieved premium rates for the short runs, but cargo volumes have shrunk, and not been replaced. Rates, depending on the trip, ranged from the high teens and reached $20,000 daily early in the week for a Murmansk/Israel trip. There was a distinct lack of cargo from the EC US, USG, NC South America and West Africa, with Kamsar out of action due to maintenance. Rates dropped sharply for the longer rounds, with a 76,000-tonner fixed for end August delivery in the USG for a trip with grain to Skaw-Gibraltar at $12,800 daily, plus a $280,000 ballast bonus. Further South, EC South America trading also slowed, and rates slipped here by more than a $1,000 daily, on the rate, with an expectation of further cuts. Rates for Panamaxes for end August were around $15,000 daily, plus a $500,000 bonus. Too many early ships in the East left the field open for charterers to push rates sharply lower. An 87,000-tonner open Fukuyama, 8 August, was said to have agreed $9,000 daily for a trip via Australia to Taiwan. A 74,000-tonne Hudong type, open CJK, allegedly fixed a NoPac round with petcoke at a rate in the low $9,000s and some even suggested under $9,000 daily. Period interest for now appears off the table.
It was a relatively slow week, with only a few areas making small gains. Period activity remained scarce, but a 55,000-dwt open North China was fixed for three to five months trading at $11,750.
The Atlantic market generally traded sideways, but the Mediterranean- Black Sea bucked the trend with some healthier rates achieved. An Ultramax was linked to a trip from the Baltic to West Africa in the $18,000s, whilst from the Mediterranean, another Ultramax was rumoured linked to a fronthaul, with delivery Canakkale, at around $22,000. As the week came to a close a little more activity was seen from the USG, a 56,800-dwt was fixed in the high $16,000s for a trip to the Mediterranean and a 55,600-dwt was fixed delivery NC Brazil, for a trip with alumina, redelivery Iceland, at $16,700. EC South America was flat with limited action.
The Asian market had a split with the North, lacking support, while further south, more enquiry was seen.
A 57,100-dwt was reported fixed delivery Jingtang for a trip with metcoke to EC India in the mid-$8,000s. In contrast a 56,000-dwt was fixed delivery Surabaya, for a trip via Indonesia, redelivery mid China, at $13,000. The Indian Ocean area was also largely unchanged, with a 50,000-dwt fixed for a trip delivery Mina Saqr, via the Arabian Gulf, redelivery India, with limestone at $12,750.
Overall, last week saw little improvement and the BHSI continued to fall. Rates from the USG and EC South America were weaker, while the Pacific market was also largely flat. In the Atlantic, a 31,000-dwt 2001-built, open in the Skaw, was fixed for a trip via the Baltic to the East Mediterranean with timber and general cargo at $10,750. A 32,000-dwt 2007-built was fixed from Canakkale for corn, via the Black Sea to Italy, at $10,350. A larger-sized handy was reportedly failed for a similar run, with steels at $11,500, delivery Tuzla in early August. From EC South America, a 34,000-dwt 2012-built open spot in Praia Mole was fixed at $12,500, basis Bahia Blanca, for coastal business. A 30,000-dwt was fixed from NC South America to the East Mediterranean at a rate in the $8,000s. In the East, a 31,000-dwt 2012-dwt open Jakarta in early August, was fixed to run via Geraldton, redelivery in South Korea, at $8,900. A 32,000-dwt 2009-built open Kuala Tanjung was booked for a trip via West Australia to EC India at $9,500. A 29,000-dwt 2012-built open South China was fixed basis passing CJK delivery to move fertilisers via South Korea to Thailand at $8,250.
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