Small Handy
The small-size market remained largely unchanged this week. On the Southeast Asia–Far East route, 15,000–18,000 DWT vessels were being offered around USD 7,000 to mid-USD 8,000s/day for one time charter trip (TCT). Meanwhile, an 11,500 DWT vessel was being offered at around USD 5,000–6,000/day for TCT/LL. Similar levels were also reported for a 13,000 DWT vessel fixed for a TCT from KSC to South Korea. In addition, a 12,000 mt fertilizer cargo from Nanjing to KSC was being quoted in the high USD 20s pmt, while a 12,000 mt scrap cargo from Japan to Son Duong was being indicated by charterers in the mid-to-high USD 30s pmt, with owners seeking firmer levels around the low-to-mid USD 40s pmt. In Southeast Asia, owners were offering around the high USD 20s to low USD 30s pmt for a 15,000 mt urea cargo from Muara to Bataan. A 12,000 mt gypsum cargo from Thathong to Dongguan was being quoted by charterers in the mid-teens pmt. Meanwhile, a 10,000 mt canola meal cargo from Yanpu to Quy Nhon was fixed on TCT at around USD 7,000/day.
Handysize
The Handysize index fell by a further USD 33 to USD 15,570/day, with the decline once again almost entirely driven by a single route. The Atlantic market continued to weaken, while the Pacific gained, maintaining the divergence between the two basins that has been evident across the geared market throughout the week. The main pressure continued to come from the U.S. Gulf, where the U.S. Gulf–Skaw/Passero route fell by USD 272/day. The decline on this route alone was larger than the overall drop in the index, while improvements across three Pacific routes partially offset the weakness. Fixing activity in the U.S. Gulf remained relatively limited, while the Continent and Mediterranean continued to face pressure from relatively ample vessel availability. Meanwhile, period demand remained active. A 31,000 DWT Handysize built in 2007, open in the Philippines at the end of August, was reported on subjects for a 5–7 month period at USD 11,000/day. The key question is whether increasing period demand can absorb enough prompt tonnage from the Atlantic to provide support to the market, or whether the U.S. Gulf will continue to dictate the trend for a fourth consecutive session. So far, the latter scenario remains dominant. Period activity has yet to remove sufficient tonnage to create a meaningful change in the Atlantic supply-demand balance. The fact that a single route has accounted for most of the index movement over four consecutive sessions suggests that the current weakness is more concentrated than broad-based. Therefore, the 5–7 month period fixture at USD 11,000/day appears to reflect owners’ and charterers’ efforts to test forward period levels rather than representing the current prompt market.
Supramax
The Supramax/Ultramax market remained stable in the Atlantic, while the Pacific began to show signs of losing momentum. In the Atlantic, the market remained broadly stable, supported by fresh cargo from the U.S. Gulf and South America. An Ultramax open in Houston was fixed at around USD 38,000/day for a petcoke voyage to India. Meanwhile, a 61,000 DWT vessel open North Brazil was reportedly fixed at USD 29,500/day for a trip to the Mediterranean. In addition, a 56,000 DWT Supramax open in West Africa was heard fixed at USD 18,000/day for an ore voyage to South China.In the Pacific, the North Pacific saw fresh cargoes coming into the market at noticeably lower bid levels than the previous week, with Ultramax rates around USD 16,500/day for delivery CJK. Steel cargoes from China to the Mediterranean and West Africa were being discussed around USD 18,000/day, while voyages to the Red Sea or Oman were heard around USD 21,000/day.In the southern Pacific, Australian export cargoes continued to provide support, while coal and clinker demand showed signs of easing. A 63,000 DWT vessel open in the Philippines was reportedly seeing around USD 20,000/day for a trip via Australia to Japan. Meanwhile, a 56,000 DWT vessel in Hong Kong was fixed at USD 21,500/day for a clinker shipment to Chittagong.For Indonesia/China–Southeast Asia trades, the market was affected by a significant slowdown in Indonesia–China coal activity. A 56,000 DWT vessel open Hong Kong was fixed at around USD 13,000/day for a trip to China, while a 63,000 DWT vessel open Gresik was fixed around USD 18,000/day for a coal voyage to CJK.In the Indian Ocean, a 63,000 DWT vessel was reportedly fixed at around USD 14,000/day for a salt shipment from West Coast India to South Korea. Meanwhile, strong demand from South Africa continued to support the market, with Ultramax fixtures around USD 26,500/day plus a USD 260,000 ballast bonus. Overall, the market remained supported by steady cargo flow, although the weakening of some Indonesia–China coal trades and the softer tone in the Pacific are beginning to put pressure on overall freight levels.
Best regards,
