Positive week for Ultramax

The Capesize market showed signs of stabilisation this week following a period of softness, with improvements in the Pacific basin and a more balanced Atlantic. In the Pacific, C5 rates gradually firmed, rising from $6.90 early in the week to $7.44 by week's end. All three major miners were active and fixing volumes increased, tightening the tonnage list toward the close. Operator-led demand, robust iron ore volumes in ex-West Australia, and a rise in coal cargoes underpinned sentiment. The Atlantic began slowly but gained momentum. On the Brazil to China (C3) route, early softness gave way to firmer fixtures later in the week, with a fixture reported at around $19.50 for end July dates. However, a persistently long ballaster list continues to weigh on forward sentiment. The North Atlantic saw a modest uptick in transatlantic and fronthaul activity, although rates remained largely underpinned. Overall, the BCI 5TC lost $2,128 over the week, closing at $15,382.

 

The Panamax market returned mostly a flat week, with the exception being EC South America, which witnessed a steady rise from mid-week with solid levels of demand and firm fundamentals. The North Atlantic disappointed by comparison, while the transatlantic trips remained mixed with far-ranging rates concluded depending on delivery point. Like last week, the Continent delivery ships are not boding well compared to West Mediterranean positions. Fronthaul activity fared slightly better with steady grain and mineral demand emanating from the North Americas. Reports mid-week of an 82,000-dwt delivery Continent achieving $21,250 for a trip via NC South America to China. In Asia, plentiful activity with steady, if not spectacular, demand from all major load origins. Rates, especially ex Australia, remained steady with talk of an 81,000-dwt delivery Japan agreeing $11,500 for a trip via Australia redelivery Japan. Period activity was minimal, but the highlight did include rumours of an 82,000-dwt delivery China achieving around $12,000 basis 1 year period.

 

A rather positive week for the sector as demand increased in some key areas. In the Atlantic, the US Gulf saw stronger numbers being discussed with charterers bidding towards the mid $20,000s for transatlantic runs to attract any interest from Ultramax owners. Better levels were also seen elsewhere, with a 56,000-dwt open Eregli heard fixed for a trip via Constanta redelivery Aqaba at $14,500. It was fairly positive week in Asia as demand returned from both the south and further north for backhaul business. A 63,000-dwt was heard fixed delivery Tianjin for a trip to the Mediterranean, with steels at $17,000 for the first 65 days and thereafter at 418,500. Further south, a 61,000-dwt was fixed delivery Hong Kong for a trip to Singapore at $12,000. The Indian Ocean also saw green shots, with a 63,000-dwt fixing delivery South Africa for a trip to China at $16,000 plus $160,000 ballast bonus. Period activity remained, with a 63,000-dwt open Sitra fixing 5/7 months trading at $15,000.

 

It was generally a quiet week for the Handy sector. Activity continued to slow down across the Continent and the Mediterranean as many participants were away attending various shipping events. A 34,000-dwt was reported fixed from the West Mediterranean to the US Gulf at $7,000. From the US Gulf, the market maintained its soft tone, with a continued lack of fixing activity and a noticeable build-up in available tonnage. A 39,000-dwt open Wilmington was fixed for delivery SW Pass to Morocco at $15,000. The South Atlantic remained relatively unchanged, with rates holding steady for now. A 38,000-dwt was fixed for delivery Amazon River to West Mediterranean at $17,500. Meanwhile, the Asian market stayed largely stagnant. Fundamentals showed little movement and overall sentiment remained flat. A 41,000-dwt was fixed for delivery Richards Bay on 10 July for a trip via South Africa redelivery Pakistan with coal at $22,500.