The Baltic Exchange, the world’s independent source of maritime market data, has issued its report for the last week, 12th – 16th June 2023, to provide information of the bulk market performance.
ccording to Baltic Exchange reports, highlights of capesize, panamax, ultramax/supramax, handysize include:
In the Pacific, the week started with a relatively calmer tone compared to the previous week. Despite the presence of all three major players from West Australia to China, enquiry levels remained thin, resulting in a lack of momentum. However, the market managed to maintain support throughout most the week. As the week drew to a close, the Pacific market continued to face sluggish conditions, with minimal activity and limited enquiry. Consequently, rates experienced a slight decrease.
The Atlantic market began the week with minimal activity and subdued conditions. Enquiry levels were low and there was a need for patience to gauge whether the positive sentiment from the previous week would translate into an improved market. In contrast, the North Atlantic witnessed a somewhat varied scenario. Enquiry levels experienced a modest increase, leading to improved fixtures overall. Notably, the fronthaul market saw increased activity, suggesting that owners’ resistance was producing positive results. Although, as the week draws to a close, there is a feeling that current conditions are showing signs of being somewhat overextended or reaching a peak.
The Panamax market returned mostly a flat week but in parts encountered a steady rise following recent weeks of falls. The Atlantic was for the most part grain centric but did witness some trans-Atlantic activity pick up mostly by committed tonnage delivery Aps basis at discounted rates equating to low levels delivery this side. Fronthaul rates typically for early July arrival ex EC South America hovered around the $15,000 + $500,000 mark for 82,000-dwt types. In Asia, Indonesia coal demand appeared the main driver for the Pacific this week with plentiful activity. With an improving EC South America market, the south appeared well supported, accordingly rates picked up as the week progressed, a 79,000-dwt delivery South China achieving $8,000 for an Indonesian round trip redelivery South China, perhaps the highlight with rates increasing. Period activity included an 81,000-dwt fixing 16/18 months, index linked at 110% to the BPI5TC.
Overall, a better week for the sector, although this was mainly led from Asia, which saw better levels of fresh enquiry and a tightening of tonnage availability in most areas. Somewhat of a contrast in the Atlantic, which was rather subdued. Having said that, as the week ended, there was a slight shift in sentiment certainly for the larger Ultramax from South America. Period activity appeared again, with a 60,000-dwt open China fixing four to six months trading at $8,000 for the first 50 days thereafter $13,500. In the Atlantic, a 63,000-dwt was heard fixed at $14,000 plus $400,000 ballast bonus for a fronthaul delivery South America. Elsewhere, a 55,000-dwt open Iskenderun was fixed for a trip to the US Gulf in the mid $12,000s. From Asia, stronger numbers were seen a 58,000-dwt open Singapore fixed a trip via Indonesia redelivery China at $11,000. Further north, a 57,000-dwt fixed a trip from China to the Black Sea at $7,000.
The ongoing issues with limited fresh enquiry across both basins continued adding further pressure to vessels opening in June. Across the Atlantic numbers continued to fall. A 34,000-dwt was fixed basis delivery in Bourgas for a trip to the Spanish Mediterranean at $5,500. However, a 36,000-dwt fixed from Greece to the US East Coast at $9,000. A 36,000-dwt fixed from Poland to West Africa with an intended cargo of grains at $8,500. The South Atlantic was a similar story with a 35,000-dwt fixed from Itaqui to the Continent-Baltic range at $10,000 whilst a 38,000-dwt fixed from Rio Grande to West Coast Central America at $15,000. In Asia, brokers spoke of similar issues and a 33,000-dwt was fixed from Japan to South East Asia at $6,200 with an intended cargo of slag. A 38,000-dwt opening in Thailand fixed via Australia to Japan with an intended cargo of sugar at $7,750.