The Capesize market found little to support levels this week as a steady slide in rates saw the 5TC drop $4,681 over the week to settle at $20,933. The market was at a similar level only back in late March / early April where the 5TC found some support at the 17-20k range. Similar to previous weeks, activity appeared lacklustre while it was heard that tonnage levels had built up on several prompter positions, which combined with a general lack of cargoes to cause the weakness. In the West at the end of the week the Transatlantic C8 dropped a further $1,090 to $16,875. However, it was heard that more cargo was thought to be coming to the market. The fronthaul C9 at $37,365 was rumoured to have had some higher paying fixtures over the past couple of days giving some hope on the horizon for owners. In the Pacific the Transpacific C10 at $23,333 is still easily the best paying region. But in the race down, the spread to other regions is beginning to narrow. Laycans for West Australia to China are dated at the end of June so the market is now pushing into the second half of the year. With stellar returns for owners in recent months the expectations may be high for the second half of the year as Covid-19 remains prevalent and other dry shipping sectors buoyant.
Despite the downwards influence from Capesize, both the timecharter average and BPI largely improved this week. Support from grains from east coast South America continued. Since midweek promising rates were reported on Baltic Index type vessels open in Skaw-Gibraltar range for fronthaul trips. North coast South America continued the rise with brokers seeing more Kamsarmax size cargoes and paying premiums on Gibraltar delivery. In the east there were mixed feelings with opinions divided among brokers on Pacific round voyages. On the period front a 2019 built 82,000-dwt delivery Tianjin in early June was fixed for five to seven months at $27,500 with worldwide redelivery. For east coast South America round voyages a Kamsarmax was paid $31,000 delivery east coast India early in the week and a similar sized vessel was reportedly paid at similar level basis Singapore delivery later in the week. An 82,000-dwt was paid $25,000 basis 20/28 June delivery Santos for a trip to China plus a $1.5 million ballast bonus.
A week of mixed fortunes as limited fresh enquiry from the Asian arena early in the week lead to rates easing. But as it ended, brokers said some resistance was seen from owners. The Atlantic fared better with positive gains in most areas. Period cover was sought with Ultramaxes in the Atlantic seeing around $30,000 for short period, whilst a 64,000-dwt open in the Far East saw around $24,000 for one year. There were better numbers from the Continent as Ultramax saw in the upper $20,000s for scrap runs to the east Mediterranean. Whilst from east coast South America the Supramax size was seeing in the mid $30,000s for transatlantic runs. From Asia, a 57,000-dwt was fixed delivery south China for an Indonesian round at $25,000. Strong numbers were again seen from the Indian Ocean with the Ultramax size seeing in the upper $19,000s plus high $900,000s ballast bonus for trip from South Africa to China.
The Atlantic and Asia markets moved in different directions this week, resulting in the first negative return of the BHSI since the April 15, after a continuous climb of 344 points. The Atlantic saw all markets make positive moves, with brokers feeling that more positive moves are to come. The Navios Lyra (34,718 2012), open Taranto June 5, fixed for 120 to 160 days with redelivery worldwide at $24,000 to Seacape. In Asia, a 32,000-dwt open China was rumoured to have fixed nine to 11 months with redelivery in the Pacific at $17,000. In the US Gulf, the Centurius (33,367 2015) was rumored to have fixed basis delivery SW Pass for a trip to Spanish Mediterranean with Grains at $19,750 to Triomphe. The Integrity Daido (39,287 2019) fixed basis delivery Dop Bilbao via Antwerp to the US Gulf with steels at $21,500. And the Ocean Honesty (38,276 2013) fixed basis delivery DOP Japan to the Mediterranean with steels at $30,000.