Dry Bulk - Week 14 - April 03, 2019
Still short-term doom and gloom for the big ships, as market is only slowly absorbing an abundance of prompt units left without employment following some 8 mio tons of West Australia iron ore exports falling out due to cyclone. Apart from certain bright spots on fronthaul, spot is completely on its knees - tcequivalents of the WAust/China milk route are negative and Brazilian rounds are not much better. Period interest nevertheless remain healthy for quality tonnage, with levels presently bid by major miners at some USD 14,500 for about 1.5 years on modern 180,000-tonners being a positive contrast to average daily spot earnings of less than USD 4000.
A continued strengthening of rates in the Atlantic hemisphere has resulted in yet another positive week for the BPI index, despite a slight decrease of rates in the Pacific. A transatlantic round voyage currently pays owners about USD 10,000 per day, while a short fronthaul from the Continent yields about USD 16,500. In the East, a Pacific round voyage pays around the low USD 7,000's. The BPI 4TC-index is up 71 points to 1127.
More downward pressure on rates across both basins this week. From the USG, Ultras are fixing in the high-teens and mid-teens for FH and TA, respectively. ECSA have seen some activity this week where Supras fixing around mid USD 13,000 for TA, while from Emed to Wafr rates are around USD 7,000. In the Pacific, the Indo coal rates have been falling especially on prompt dates, where Supras are facing USD 7k in front for rv to China at the time of writing. CIS rv paying owners in the mid 6k bss CJK delivery to SE Asia, while clinker trips from Vietnam to North China is trading around USD high 8k.
Source: Fearnleys