Dry bulk market: the Capesize segment continues to rally
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The Capesize market continued its strong rally last week, reaching new highs in spectacular fashion. The Capesize 5TC opened the week at $ 53,240 and never seemed to take a step back as it closed the week at $ 8,069 to settle at $ 61,309 on Friday. The main driving force behind the market came from the Pacific, as charterers from Western Australia were surprised earlier this week with a narrow selection of choices and disrupted vessel schedules due to weather conditions in the previous week in the east. from China. The Western Australia-China C5 jumped from $ 3,759 earlier this week to $ 20,145 before falling to $ 19,082 on Friday. Meanwhile, the Transpacific C10 closed the week at $ 67,000, up from $ 70,742 the day before.
Heading west into the Atlantic, we hear that owners are looking for frontal cargo at the expense of transatlantic business, as we are firmly committed to the Atlantic Fourth Quarter strategy. The Transatlantic C8 now costs $ 69,215, while the Fronthaul C9 costs $ 81,775, allowing owners to take advantage of their prime position for the price of repositioning in the Pacific.
Not as sensational as the Cape Town market and despite varying vacations throughout the week, the Panamax market has returned to positive territory. Stable fundamentals opposed to tight tonnage created the perfect storm with significant gains seen in the Atlantic, with most of the major cargo origins experiencing strong demand. The east coast of South America saw good support for arrivals in the second half of October, with discussions of an 81,000 dwt reaching $ 36,500 for travel via the east coast of South America with delivery to Singapore. Asia, despite the holidays, recorded steady gains. Demand for NoPac grain returned as the main driver in the north, with a $ 35,500 deal on an 81,000 dwt delivery to Japan for a NoPac round trip, the week’s high. Higher levels also from Indonesia and Australia to India on coal trips, with the high rate $ 38,250 on a delivery of 82,000 dwt to Malaysia for a trip via Indonesia to the India. The period’s activity saw an 81,000 dwt reach $ 34,000 for four to six months.
Ultramax / Supramax
With widespread holidays in Asia, the week started off on a relatively slow note. However, sentiment remained strong in most areas as more surveys were seen. Activity for the period included an open Southeast Asia of 63,000 dwt, setting five to seven months of trading in the $ 40,000 range. Better demand was seen in the Mediterranean for Atlantic business, with a 56,000 dwt setting a trip from Turkey to West Africa at $ 52,000. From the Gulf of the United States, we heard that an Ultramax had been set for a trip to the Far East in the $ 50,000 range. Further south of the east coast of South America, limited activity has been reported, with some seeing the tonnage supply increasing.
From Asia, a 63,000 dwt open Kosichang was set to haul Indonesian coal to China in the $ 40,000 range and the size Ultramax also opened in Southeast Asia was in the $ 40,000 range for the Australian round trip travel. Coming from the Indian Ocean, a 63,000 dwt Kandla Open has been priced for a trip to the mainland at $ 40,000.
A week of positive gains on the BHSI, despite a vacation in the Asia region limiting activity, culminating in a new annual high of 1925 points. South America’s east coast continues its revival, with a 37,000 dwt voyage securing a voyage from Vila Do Conde to Norway with an expected cargo of alumina at $ 37,000, plus a 28,000 dwt binding of Santos in Morocco with an estimated shipment of sugar at $ 34,000.
A 35,000 dwt has also been set from Morocco to Bangladesh at $ 45,250. In the Mediterranean, a 37,000 dwt has been secured for a voyage from Turkey to the Gulf of the United States with a cargo of steel estimated at $ 41,000. In Asia, a 32,000 dwt has been secured from Vietnam to China with an estimated cargo of clinker at around $ 39,000. The period has been active with a 32,000 dwt opening in Brazil under repair for four to five months with a new worldwide delivery at $ 35,000.
Source: The Baltic briefing