‘Steady as she goes week’ for the sector

The Capesize market held broadly steady this week, moving within a narrow range as sentiment shifted between softer patches and bursts of firmer activity. In the Pacific, early caution prevailed despite multiple miners in the market, with C5 rates dipping below $10 midweek, rebounding to the low $10s as operator-led fixtures gained traction, then slipping back under $10 by week’s end. South Brazil and West Africa to China maintained a steady to firm tone, supported by healthy enquiry and several fixtures above index levels early in the week, before easing toward the mid to high $24s on C3 as September laycans advanced. Newcastlemaxes continued to trade at a discount to standard Capes. In the North Atlantic, sentiment was firmer, driven by fresh enquiry, a shorter tonnage list, and healthy returns on both TA and fronthaul routes. Overall, the BCI 5TC held within a narrow band around the mid $27,000s, underscoring a market still searching for clear direction.

 

The Panamax market provided mixed returns this week with contrasting fortunes in both basins. Low levels of activity failed to ignite markets with the Atlantic yielding sizeable losses as pressure from the nearby and a distinct lack of demand in the north continued to underpin the market. From East Coast South America limited activity played out for route P6 arrival dates but did witness buyers seeking to cover by end of the week, rates for same consistently hovered around the $14,000 mark, whilst end August continued to trade at a discount. Conversely, Asia witnessed a week of steady gains, with steady demand led by Indonesia coal, duly supported by decent demand ex Australia and to a lesser extent NoPac. There were reports midweek of a host of 82,000-dwt tonnage achieving $14,500 for an Australian round trip, whilst trips ex NoPac traded at a discount to this. There was limited period activity, but this included an 82,500-dwt delivery Far east October fixing at 115% index linked to BPI for 2 firm years.

 

The Atlantic saw a north / south divide generally throughout the week. The US Gulf saw some stronger numbers being achieved with a good amount of fresh enquiry and limited supply of prompt tonnage, some said that upper $20,000s was achievable for the ultramax size for fronthaul, although not fixtures surfaced. A 56,000-dwt was heard fixed basis delivery SW Pass trip redelivery Puerto Cortes-Cristobal range at $22,000. More enquiry was seen from West Africa, a 58,000-dwt fixing delivery Abidjan trip via Takoradi redelivery Arabian Gulf excluding Iran/Iraq at $19,000. However, the South Atlantic failed to attract much attention and rates eased generally. The Asian arena also gained traction, a 56,000-dwt open Sandakan fixed a trip via Indonesia redelivery China at $17,000. Further north, a 63,000-dwt fixed delivery CJK for a trip to East Africa at $17,250. Period activity was fairly muted, but a 61,000-dwt was heard fixed basis delivery Bataan for 5/7 months trading redelivery worldwide at $16,250.

 

It was a rather ‘steady as she goes week’ for the sector. Despite very little fixing information surfacing sentiment remained positive both from the Continent/Mediterranean and the US Gulf. A 36,000-dwt fixed at the very end of last week basis delivery Rouen for a trip Morocco in the mid $10,000s. The South Atlantic, like the other sectors remained pretty static and brokers said more enquiry was needed before mush would change. The Asian arena similarly remained rather flat. Brokers saying that fundamentals remained stable, although as the week came to a close some felt there was a slight build up or prompt tonnage. It remains to be seen if things will change much in the upcoming week whilst many are away on their summer vacation.