ECONOMIC NEWS:
- Vietnam: With a total export turnover of nearly USD 26 billion, Ho Chi Minh City continues to lead in exports during the first seven months of 2024, followed by Bac Ninh with USD 22.5 billion, Binh Duong with USD 19.28 billion, Thai Nguyen with USD 17.7 billion, Hai Phong with USD 16.8 billion, Bac Giang with USD 16 billion, Dong Nai with USD 13.4 billion, and Hanoi with USD 10.6 billion.
- Global: The composite PMI data released by S&P Global last week showed a slight decline in manufacturing and service activities in the US economy, from 54.3 points in July to 54.1 points in August. Despite the slowdown, economic activity in the US remains relatively positive compared to the European region. The continued weakening of the manufacturing sector is a concerning sign for the two largest economies in the union—France and Germany. France saw a boost from the Olympic Games this month, supporting the service sector as more than 11 million visitors flocked to Paris. However, this was not enough to improve the country’s struggling manufacturing sector, where output continued to decline, and new orders remained scarce. Meanwhile, Germany continues to experience prolonged recessionary conditions in its manufacturing sector, traditionally seen as one of Europe’s growth drivers.
MARKET NEWS:
- Small Handy: The small handy market witnessed a slight improvement this week. Reports suggest that a vessel around 12,000 dwt was fixed for a 4-6 month period at hire levels ranging from USD 6,400 to USD 6,700. Most vessels tend to extend with previous charterers, making it less likely for spot cargoes or near laycans to find suitable tonnages. It was reported that about 7,000 mts of corn was fixed at levels around USD 31-33 pmt, while bagged rice traded in the range of USD 35-38 pmt.
- Handysize: In the handysize segment, the Continent and Mediterranean regions saw an abundance of prompt tonnage towards the end of August and early September, as fresh demand remained scarce. The South Atlantic market also showed limited activity, with sources suggesting that owners may need to lower their rate expectations to secure fixtures. The US Gulf was slightly more optimistic, as positive momentum returned with new demand entering the market. A handysize vessel was rumored to be fixed at around USD 10,000-11,000 levels basis delivery North France for a trip to West Africa (non HRA) carrying grains, though further details were not disclosed. A large handy opening in the East Mediterranean was fixed for a steel run from Iskenderun to Monfalcone at USD 10,500, with no additional details provided. In the Pacific, opinions differed, with some sources noting increased activity, while others felt rates were pushed up due to tightening tonnage availability. A 28,000 dwt vessel was rated around USD 9,000-10,000 for a trip within Southeast Asia.
- Supramax: The Supramax segment saw slight adjustments in hire rates last week, though overall stability was maintained. In the Atlantic, the mv Spar Apus (63,800 dwt 2015) open in Santos was reportedly fixed for a fronthaul at USD 17,500 + USD 750,000 ballast bonus, but no further details emerged. Additionally, a 63,000 dwt vessel was rumored to be fixed from Recalada to South Africa at USD 21,500. In the Pacific, the mv Bulk Orianna (56,155 dwt 2011) open in Morowali was fixed for a trip via Indonesia with redelivery in the Philippines at USD 16,000. The mv Giorgos Dracopoulos (61,398 dwt 2013) open in Caofeidian was fixed for a trip to Southeast Asia with steels at USD 14,000, while the mv Clipper Fair (63,452 dwt 2015) also open in Caofeidian was fixed for a trip to Vietnam at USD 13,500.
BY ASCENT BULK
