ECONOMIC NEWS:
- Japan: The Bank of Japan (BOJ) is expected to delay further interest rate hikes following the resignation of Prime Minister Fumio Kishida last week. Kishida, who will not seek re-election in the upcoming party leadership race in September, had supported the BOJ’s shift from ultra-low interest rates, just days before the BOJ raised rates in July. Kishida’s departure has added uncertainty to Japan’s economic policy and complicated the BOJ’s strategy to exit from its long-standing easy monetary conditions.
- Vietnam: According to the Ministry of Planning and Investment, Vietnam attracted investment from 91 countries and territories in the first seven months of 2024. In terms of investment capital, Singapore continues to lead, while China ranks first in terms of new investment projects. Specifically, Singapore invested nearly 6.52 billion USD, accounting for 36.2% of total investment, up 79.1% compared to the same period in 2023. Hong Kong (China) ranks second with over 2.19 billion USD, accounting for 12.2% of total investment. Japan, China, and South Korea are also major investors. China leads in the number of new investment projects, accounting for 29.7%, while South Korea leads in capital adjustments and share purchases.
MARKET NEWS:
- Small Handy: The Pacific small tonnage market showed a positive trend this week. Reports indicated that 15,000 mts of jumbo fertilizer from Fang Cheng to Colombo was offered at high USD 8,000 to 9,000. Additionally, around 10,000 mts of pipes from Mongla to Singapore were offered at around USD 5,000 DOP, but owners rated it at mid USD 5,000 to low USD 6,000. A cargo of 8,000 mts of clinker in bulk from Lolak to Kuching traded at a low USD 20 per metric ton. A 19,000 dwt vessel was fixed with 15,000 mts of bulk sugar from Thailand to South Van Phong at mid USD 10 per metric ton. Additionally, a 12,000 dwt vessel was fixed for a 6-month period at mid USD 6,000.
- Handysize: Similar to previous weeks, this was another rather lackluster week, influenced by holidays in both Europe and Asia. Brokers maintained that the Continent was gaining traction, although very little fresh information surfaced. The South Atlantic market was seen as somewhat stable with reasonable rates, but more business would be needed to change the rather poor sentiment. The Mykonos Dawn (37,880 dwt, 2017) open in Rio Grande from 18/22 August was reported fixed via Recalada to the Western Mediterranean at USD 18,750, although some said it was fixed at USD 18,500. The US Gulf market lacked fresh impetus, further pressuring the already quiet market. Opinions differed in Asia, with some brokers feeling that more inquiries were coming in from Australia and further north, while others felt it was too early to see a clear direction. The 7TC average dropped marginally by USD 27 to close at USD 13,599.
- Supramax: The Atlantic Supramax market continued to see positive movement throughout the week. Reports indicate that a Supramax vessel opening in the Marmara Sea was fixed at USD 21,000 for a grain trip to India or China. In the US Gulf and ECSA, the market showed a firm trend with several commodities being traded at good levels according to broker reports.
In Asia, the market remained steady despite a lack of new inquiries. A 63,000 dwt vessel opening in Fangcheng was fixed at USD 14,500 for a trip from Vietnam to Dangjin. A 54,000 dwt vessel opening in Gresik was rated at USD 15,000 for a trip from Taboneo to China. Another 56,000 dwt vessel was fixed at USD 15,500 passing Singapore for a Southeast Asia round trip.
The North China/Far East market remained relatively stable in terms of cargo and rates. A 55,000 dwt vessel was fixed at USD 15,000 delivery CJK for a trip to PG. Meanwhile, a 57,000 dwt vessel open in Bohai Bay was rated at USD 12,500 for a trip to Indonesia.
The Indian Ocean and PG markets continued to show weakness due to a lack of cargo inquiries. A 58,000 dwt vessel open at Kandla was rated at USD 12,500 for a trip to South China. Meanwhile, a 63,000 dwt vessel was fixed at USD 14,000 for a trip from PG to West Coast India. In East India, a 56,000 dwt vessel was rated at USD 10,500 for a trip to China with iron ore. This has led owners to move their vessels towards Singapore for better-paying jobs.
BY ASCENT BULK
