Smallhandy
Small market this week have not changed much. In South East Asia – Far East trading, dwt 10,000 – 13,000 is exchanged at mid usd 5,000 to low USD 6,000. Some cargo as palm kernel ex Sandakan to Japan to S. Korea is aiming at freight low 20s, 15,5000 MOP ex North Vietnam to North China is fixed at low teens. In Southeast Asia, 8,000 coke ex Bahodopi to Samalaju, chtrs aiming freightt around 20pmt,. This is the same freight level aiming for wbp ex Jakatar to Thailand but Owrns prefer mid 30s. With PKE ex Pasir Gudang to Huangpu, freight is exchanged around high teens. Same cargo, but route from Strait to S. China is exchanged at low – mid teens. Beside, rice from Yangon to Phils is offered at mid 30s but Owrns want higher number, at low 40s.
Handysize
The Handysize market was mixed again, with different regions moving in different directions. The 7TC index slipped by just $12 (0.07%) to $16,990, staying almost unchanged. The Continent and Mediterranean were quiet with little rate movement. The US Gulf was the strongest area, with several fixtures reported at slightly higher levels. The South Atlantic was much quieter and rates started to ease. In Asia, too many open ships continued to put pressure on rates for a second straight session. In the Atlantic, a Handysize was reported on subjects for a US Gulf to East Coast Mexico voyage at $20,000, while another similar vessel fixed the same route at $19,000. In Asia, ships open in China and South Korea were placed on subjects for Southeast Asia at around $17,500. South Korea’s crude steel production increased 3.3% year-on-year in May to 5.4 million tonnes, while Japan’s rose 1.7% to 7.0 million tonnes, showing that steel demand remained steady even though the Handysize market was still weak. Yesterday, we wondered whether stronger paper prices meant Atlantic demand was improving, or whether the weaker Pacific market would pull rates down. The answer was somewhere in between. The US Gulf became firmer, but the South Atlantic weakened and Asia remained under pressure from excess tonnage, leaving the overall index almost unchanged. This is now the third straight session where paper and spot markets have moved differently, making it the longest disagreement among the four dry bulk sectors. The paper market strengthened again, mainly for the middle months, while the front months changed very little.
Supramax
The Supramax/Ultramax market maintained positive momentum across both the Atlantic and Pacific basins, although improvements remained uneven between regions.
In the Atlantic, the market stayed relatively stable, supported by fresh cargo demand from the U.S. Gulf and South America. An Ultramax open in Houston was discussed around USD 28,000/day for a grain trip to India, while a 61,000 DWT vessel open North Brazil was reportedly fixed at USD 29,500/day for a trip to Egypt. In addition, a quality Supramax open Dakar was heard fixed with ore to South China at around USD 17,500/day for prompt delivery.
In the Pacific, sentiment staying flat particularly in the NOPAC region where cargo bids at lower side around USD 19,000/day basis CJK delivery on Ultras. Backhaul steel cargoes from China to the Mediterranean and West Africa also remained firm, with discussions heard in the low USD 22,000/day range for general cargo
In the southern region, clinker and Australian cargoes continued to provide healthy support. A 63,000 DWT vessel open Cebu was reportedly seeing levels around USD 21,500/day for a trip via Australia to Japan, while a 56,000 DWT vessel was fixed at USD 23,000/day for a clinker shipment from Cam Pha to Chittagong. For Indonesia/China–Southeast Asia trades, the market remained positive. A 56,000 DWT vessel open Hong Kong was fixed around USD 14,500/day to CJK, while a 63,000 DWT vessel open Gresik was holding near USD 22,000/day for trip to Thailand.
In the Indian Ocean, a 53,000 DWT vessel was heard fixed around USD 13,500/day for a WCI–AG round trip, while strong South African demand continued to support Ultramax fixtures around USD 23,500/day plus a ballast bonus of USD 250,000. Overall sentiment remained cautiously positive, The Owrs have shown the intention for Hormuz passing according to current situation, despite of geopolitical risks and bunker price volatility.
Best regards,
