The Capesize market was positive during the week, rising over $1,200 to close at $13,957. In the Pacific, rates for trade from Western Australia to Qingdao were set by loading before or after Christmas, with faster vessels receiving a premium. Trade from Brazil to Qingdao and Western Australia to Qingdao hovered in the $19s and $8s throughout the week, with many matches reported on C5 – especially nearing the end of the year. The laycan window for loading in Brazil is now fully moved to the first half of January next year, again early dates have been paid for at a significant premium. Brazil has its rainy season which begins in December with the worst weather conditions expected from January to February. As a result, the volume may drop significantly. Otherwise, the Atlantic basin remained largely calm this week.
A firmer week in the Atlantic market, producing modest rate gains for homeowners. The North Atlantic saw a surge in mineral shipments later in the week, with $17,000 struck a few times for transatlantic rounds with cancellation dates in December. This in turn supported rates for longer cycles as owners sought employment to tie them in beyond the holiday period. The charterers duly accepted agreed stable fares for laden hauls and the US Gulf fronthaul haul, which remained stable throughout the week. A mixed picture has emerged in Asia. There has been an increase in demand on supply from Indonesia to China, which has proven to be a catalyst for slightly firmer numbers on these trips and has seeped into NoPac round trips longer. The median NoPac round-trip fare was $11,500, but heading into the weekend, we’re ending with a big gap between bid and offer, with neither side willing to concede for the weekend. instant.
It was a rather uneven week overall for the sector. From the Atlantic, the US Gulf was the only area to gain ground, with demand remaining strong for quick needs. Otherwise, most regions lacked new momentum. The Asian arena, having started with good demand at the start, saw little excitement at the end of the week and rates in most places came under downward pressure. However, period activity was seen and a Philippines open of 63,000 dwt settled for three to five months at $14,000. From the Atlantic, a fixed delivery SW Pass of 56,000 dwt for petroleum coke to China at $27,000. Elsewhere, supramax sizes saw around $11,000 to $12,000 for scrap runs from the mainland to the eastern Mediterranean. From Asia, a 56,000 dwt set from northern China to the Persian Gulf in the $7,000 range. A 63,000 dwt also pegged delivery from North China via Indonesia to the Philippines at $10,500. There was a little more activity in the Indian Ocean, a fixed delivery Port Elisabeth of 63,000 dwt for a trip to China at $19,500 plus $195,000 ballast bonus.
Asia has remained balanced in recent days and despite a lack of visible activity the Atlantic has seen mixed results. The mainland was said to be short of spot cargoes, leading some owners to make discounts. A 30,000 dwt was fixed from Dunkirk to Morocco with an expected cargo of grain at $8,250 and a 35,000 dwt fixed from Hamburg to Morocco at $8,750, also with an expected cargo of grain. The South Atlantic was active with Recalada fixing 40,000 dwt with mid-December dates at Fortaleza at $25,750. A fixed Recalada of 34,000 dwt in Paranagua at $22,000. In Asia, a 37,000 dwt vessel fitted with a scrubber was secured from Japan via Newcastle to China with an expected cargo of concentrates at $12,700 – with the scrubber for the benefit of charterers. A 37,000 dwt was rumored to have been repaired from South East Asia via Australia for a $11,500 round trip earlier in the week.
Source: Baltic Stock Exchange