Capesize (Atlantic and Pacific)
Capesize market, after a period of very good results, recorded a negative week with rates under pressure in all basins. In the Pacific Ocean the standard route from West Australia to China slowed down from $8.10/mt to $7.4/mt compared with the previous week. Timecharter rates in the region averaged around $19,000/20,000/d Lack of fresh cargoes out of Brazil forced owners to agree lower rates and $18/mt was fixed for mid-October dates. In the Atlantic basin the standard route from Bolivar to Rotterdam was fixed at a low $9's pmt with timecharter at around $17,000/d. The uncertainty expected for the next weeks triggered very slow activity in the period market.
Panamax (Atlantic and Pacific)
A very weak market was reported this week in both basins: in Atlantic Ocean the USG market tried to maintain good levels and, despite lack of cargoes in the N Cont where rates lost even $1,000/d, kept similar levels to last done. In this area a 2017-built Kamsarmax fixed at $15,500/d plus $550,000 bb for a trip to East on the first half October dates. Similar scenario reported from East Coast South America where rates have remained close to levels seen last week with a 2007-built Kamsarmax fixed at $13,250/d delivery retroactive Singapore for a round voyage via East Coast South America. The Pacific basin is the area where upcoming Moon festival holidays in China and S Korea had a very bad impact with very few activity seen this week: Charterers failed with those ships fixed at $13,000/d at beginning of week, while they refixed for same route and similar ships at $1,500/2,000/d less. Again the long tonnage list in the North also had an adverse impact on those open further South, which previously have been reported fixed at much firmer rates. Period activity, as consequence of above, is close to “zero” with nice Kamsarmaxes at discounted by $1,500/2,000/d but no charterers are takers nowadays.
Handy (Far East/Pacific)
After the strong improvement recorded in the Pacific basin during the previous week, the market dropped heavily through Friday losing around $700/$750/d over the main routes. The most significant loss has been reported in Indonesia where a Tess58 basis delivery S China has gone from fixing for a trip to India around $13,500/d on Monday, to agreeing on Friday $12,350/d on the same route. A similar scenario also for the usual coal trade from Indonesia to China dropped for a standard Tess58 delivered in S China from $13,000/d on Monday to $11,800/d on Friday. Even if the trend is clearly downwards, for very prompt dates, still few decent numbers were reported achieved for Ultramaxes and Supramaxes. A 61,455 dwt got $16,500/d for a trip via Indonesia redelivery China but with delivery Singapore, while a 55,000 dwt fixed $13,000/d delivery Kemen in South China for an Indonesia RV carrying nickel ore, which normally pays over the normal coal trip and probably vessel has been overpaid because of the spot dates. In the Northern part of China the scenario was almost same; for NoPac/Aussie RVs the standard Tess58 were fixing around $11,000/d on Monday against the $10,200/d they were supposed to get on Friday, but no fixtures have been reported in the market.
Handy (North Europe/Mediterranean)
The Handysize market in the Cont remained still good. Grain traders are rumored having difficulties in finding spot ships to perform voyages to the Med. On the Supramax size not many cargoes are available but due to the lack of tonnage in the area this seems not reflected much in the market rates. Vessels in the Skaw/Passero range are showing a much healthier market for the repositioning trip to the USG and USEC, at around $6,500/$7,000/d, which is not a surprise because it is reflecting the drop of the USG market in the final part of the week. The B Sea is still strong on prompt dates on Handies but Supramaxes started the week with a drop which probably will continue also next week. The Supramax Med/B Sea route was the more affected from this slowness starting Monday with a value of $17,150/d for Tess 58 size and closing Friday at around $16,500/d.
Handy (USA/N.Atlantic/Lakes/S.America)
Market in the USG started his dropping on Wednesday, following the Panamax trend begun on Monday. Despite the good number of cargoes available in the market for the first half of October, the oversupply of tonnage continues to affect rates. Supramax rates dropped from around $17,500/18,000/d to a modest $16,000/16,500/d for a trip to the Cont/Med range, and from a $22,000/23,000/d to $21,000/22,000/d for trip with Eastern discharge. A further drop is expected for the next week. ECSA, despite a positive trend throughout the week, started to show the first signs of slowdown. For trip to the Med, a 63,500 dwt Ultramax has been reported as fixed from Recalada to Egypt at $16,000/d, while Handies getting $14,000/14,500/d for same trip. Trades to East showed several Supra’s owners asking for $15,000/d + $500,000 bb. A 56,500 dwt with dely Santos and redely India got $14,600/dwt + 460,000 bb for a trip to F East. Handysizes on the same trade was paid around $16,500/d.
Handy (Indian Ocean/South Africa)
Also this week a small number of concluded deals were reported in the S African market and, despite a negative feeling at the beginning of the week, the market levels remained stable. The Tess58s from Richards Bay to China are asking numbers around $13,000/d + $300,000 bb aps and a 63,500 dwt dely Tuticorin got $13,000/d for trip via S Africa and redely EC India, equivalent to $13,000/d + $250/260,000 bb basis aps. The MEG and WC India remained strong, with around $13,000/d for trip to East and trips via Iran fixed in the $17,000/d from the MEG.
Banchero Costa and Co Spa
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