The Baltic Briefing has released a report about the dry bulk market.The report dated 11th September highlights the plight of the dry bulk market.
It was a tough week for Capesize owners as the market was seen to ebb away on underwhelming activity levels. It’s uncharacteristic for this time of the year, although 2020 is anything but normal.
The week’s movement saw Brazil C3 levels shed approximately 90 cents to find a new floor at $15.605, while the Brazil to China timecharter level slid down to $15,227.
North Atlantic market
The North Atlantic market barely got started this week. Rates in the region slid on weak sentiment and lack of cargo.
The Pacific basin had Rio Tinto picking up a few vessels at the beginning of the week but hardly the voracious appetite the market is used to.
This was possibly down to the fact that the market was going in their direction, yet both BHP and FMG were largely not heard in the market until Friday.
The West Australia to China C5 market did manage an uptick of 31.8 cents to end the week at $7.00. The Capesize 5TC did appear to find a bottom on Friday to settle up +173 to $15,248.
However, the market remains in dire need of a kickstart sooner rather than later if owners are to see any substantial last quarter rally.
With confined demand globally, it proved to be a challenging week for owners with a slow and steady erosion of rates in the Panamax market culminating in the five time charter average shedding $1,223 to end the week at $11,817.
Post Panamax tonnage
In Asia, Post Panamax tonnage for Pacific round trips were able to achieve rates well into the $14,000’s during the early part of the week. But with limited mineral trade, this had eroded down to closer to $13,000 as the week ended.
With very little action of note in the Atlantic, rates here came under the most pressure with charterers largely able to pick off tonnage at will.
US Gulf trips
Black sea front haul trips were probably the main exception, with rates hovering steadily around the $22/23,000 mark for 82,000-dwt tonnage.
Meanwhile, figures in the region of $20,000 were concluded a couple of times for US Gulf trips to the east delivery Cont/Med area for same spec tonnage.
A poor week for the BSI, which lost 32 points from last Monday’s opening.
Period activity remained very limited, but a 63,000-dwt open west coast India was fixed at $13,500 for a short period. Brokers described a positional week from the Atlantic with many areas losing ground with little fresh enquiry.
-US East Coast
From the Mediterranean, a 63,500-dwt was fixed delivery Turkey for a trip to South Korea at $23,500.
East coast south America limited activity, but a 61,200-dwt fixed a trip delivery Recalada redelivery Iraq at around $14,750 plus $4750,000 ballast bonus.
It was finely balanced in the Asian arena, but a little more enquiry for north Pacific and Australian business as the week closed.
-US West Coast
A 63,500-dwt covering in the low $10,00s for a trip delivery China via US west coast redelivery Singapore-Japan.
Further south, a 57,000-dwt was fixed delivery east Kalimantan for a coal run to west coast India at $11,000.
Indian Ocean remained steady, an Ultramax fixing delivery South Africa for a trip to the Far East in the mid $13,000s plus mid $300,000s ballast bonus.
Despite some small decline the BHSI remained amongst the highest level of the year, with similar figures last seen in early November 2019. The same trend continued from last week with more softening signs from the Continent / Mediterranean region.
A quiet start with Labour Day celebrations in the United States followed by a public holiday in Geneva in the middle of the week.
US Gulf Coast
The US Gulf and east coast South America were not particularly active or firm throughout the week. Meanwhile, brokers suggested a ray of hope for vessels opening in the Pacific with sentiment firming up slightly.
However, the improvement from the East was not sufficient to offset losses in the Atlantic basin for most of the days.
Some fixtures of the week included a 33,000-dwt delivery Canakkale fixed for a trip via the Black Sea to Morocco at $10,500.
-A 32,000-dwt delivery Diliskelesi was fixed for a trip to the US Gulf with steels in the high $9,000s.
-A 37,000-dwt was fixed for a short trip from Southwest Pass to east coast Mexico at $12,000.
Source: Baltic Briefing
BALTIC INDICES 15/09/2020
Baltic Exchange Dry Index
1289 (+ 7)
Baltic Exchange Capesize Index
1922 (+ 24)
Baltic Exchange Panamax Index
1296 (- 4)
Baltic Exchange Supramax Index
912 (- 2)
Baltic Exchange Handysize Index
554 (- 4)
Capesize Weighted Timecharter Average 15,942 (+ 206)
Panamax 82 Weighted Timecharter Average 11,666 (- 38)
Panamax 74 Weighted Timecharter Average 10,330 (- 38)
Supramax 58 Weighted Timecharter Average 10,032 (- 25)
Handysize 38 Weighted Timecharter Average 9,968 (- 71)
Handysize 28 Weighted Timecharter Average 8,002 (- 71)
‘Anna G’ 2014 81004 dwt dely Mizushima 15 Sep trip via NoPac redel
Singapore-Japan $12,250 – Bunge
‘Graecia Nautica’ 2014 81001 dwt dely Tamashima 14/19 Sep trip via US
Gulf option NoPac redel Singapore-Japan $14,000 – Cargill
‘Sea Diamond’ 2007 77096 dwt dely Yeosu 16 Sep trip via Roberts bank
redel S Korea intention coal $11,000 – KSC
‘SFL Yukon’ 2010 56836 dwt dely Philippines prompt trip redel Jakarta
intention sulphur $11,000 – cnr
‘Carolina Bolten’ 2015 37567 dwt dely Constanta prompt trip via Black
Sea redel US Gulf intention grain $10,000 – cnr
‘TBN’ 170000/10 Dampier/Qingdao 26/28 Sep $7.40 fio
90000shinc/30000shinc – Rio Tinto
‘Maran Sailor’ 2006 170000/10 Port Hedland/Qingdao 29 Sep/1 Oct $7.45
fio 80000shinc/30000shinc – BHP
‘TBN’ 170000/10 Port Hedland/Qingdao 29 Sep/1 Oct $7.30 fio
90000shinc/30000shinc – Rio Tinto
‘TBN’ 160000/10 Port Hedland/Qingdao 29 Sep/1 Oct $7.30 fio
80000shinc/30000shinc – FMG
‘Brave Sailor’ 2011 Cofco relet 160000/10 Esperance/China spot 29
September onwards $8.75 fio scale/30000shinc – PMI – <11/9 fixture>
‘Star Bulk TBN’ 78000/10 Gladstone/Dangjin 3/10 Oct $10.44 fio
35000shinc/30000shinc – Hyundai Glovis Tender
‘TBN’ 75000/10 Gladstone/Visakhapatnam 1/10 Oct $14.35 fio
35000shinc/20000sshex – SAIL
‘TBN’ 38000/5 Beira/Ganga 1/6 Oct $17.25 fio 18000sshex/25000shinc –
‘TBN’ 45000/5 urea Ruwais/Mundra 18/22 Sep $10.44 fio
6000fhex/10000shex – RCF
All figures and details/info in good faith but without any guarantee.
Anchor ship Broking.