The Capesize market experienced an eventful week despite starting off quietly with the BCI 5TC dropping by $409 to $25,650 on Monday. However, the market turned around midweek with a surge in activity, especially in the Atlantic. Demand from South Brazil and West Africa to the Far East for July loaders drove a tightening of the ballaster list, significantly boosting rates resulting in the BCI 5TC increasing by $1,288 to $26,082. Brokers reported by Wednesday and Thursday that approximately 18-20 fixtures had been concluded, substantially reducing the number of ballasters and adding pressure to the market. This increased activity resulted in the BCI 5TC, rising to $28,557 by the week’s end. The Pacific market experienced a boost, with improved rates and stronger sentiment as a result C5 rates increased by approximately 0.50 cents, although activity levels have significantly diminished as the week concluded with the C5 index seeing a slight adjustment of 0.165 to end the week at $11.165.
A further eroding of rates across the board for the Panamax market this week. The Atlantic returned smaller losses and throughout the week sources spoke of a two-tiered market between the mineral and grain trades, with the former seeing again hugely discounted rates, whilst $15,500 was agreed on a scrubber fitted vessel for a trans-Atlantic trip via NC South America. Rates ex South America continued to ease, with minimal activity as charterers with time decided to hold back, with several deals delivery aps EC South America 5/10 July were heard concluded around the low-mid $17,000’s and equivalent ballast bonus. Asia, beset all week by a growing tonnage list, saw rates fall away dramatically, with $12,750 being concluded basis an 81,000-dwt delivery South Korea for a NoPac round trip, sentiment remains bearish with little signs of a recovery. Limited period activity, however, with reports of an 82,000-dwt delivery Indonesia achieved low $18,000’s for 22/25 months period.
Mixed fortunes again for the sector, as ‘summertime blues’ probably described the Atlantic whilst from Asia the week started on a positive note, although as it finished even here positive sentiment eroded. The Atlantic was rather positional, with demand from the US Gulf seemingly ebbing away, although a 63,000-dwt was heard to have fixed a fronthaul from NC South America at $26,000. A similar story from the Continent-Mediterranean as prompt tonnage became readily available. A 56,000-dwt fixing delivery Spain to US East Coast at $9,000. From Asia, changing fortunes during the course of the week. Little fresh enquiry was seen from the south whilst better levels of interest had been seen further north. A 55,000-dwt open Djakarta fixed a trip via Indonesia to China in the mid $17,000s. The Indian Ocean remained rather flat, with a 63,000-dwt open Bangladesh fixed a trip via EC India redelivery China with iron ore at $16,500.
A lackluster feel was seen across the handy sector as the week progressed. The Continent and Mediterranean were the highlights of the Atlantic, with a 38,000-dwt fixing from the Black Sea to Morocco with grains at $14,000 whilst a 33,000-dwt fixed from Middlesbrough to the US Gulf with a cargo of steels at $12,500. In the South Atlantic, a large handy was rumoured to have fixed from Recalada to West Coast South America in the low $20,000s but further details had yet to surface. After a period of positivity, the US Gulf showed signs of stabilizing, with a 35,000-dwt fixing from Cape Henry to the North Continent with coal at $15,000. Visible activity in the Asia markets was minimal but numbers had remained steady. A 33,000-dwt fixing from Japan via South Korea to WC India with coils at $14,000. Period activity surfaced with a 37,000-dwt fixing basis delivery SW Pass for 3 to 5 months, with Atlantic redelivery at $15,000.