The Baltic Exchange, the world’s independent source of maritime market data, has issued its report for the last week, 21 – 26th May 2023, to provide information of the bulk market performance.
ccording to Baltic Exchange reports, highlights of capesize, panamax, ultramax/supramax, handysize include:
The capes started the week off at a relatively sluggish pace in both the Atlantic and Pacific regions. However, over the course of the week, there was a considerable uptick in the level of activity. We had all the three majors fixing this week from West Australia to China, but despite the healthy volume, rates began to slide and sentiment turned rather negative. Owners generally were choosing to stay in the Pacific as opposed to ballasting. In the Atlantic there was a similar story, with limited enquiry early in the week resulting in the market drifting and ultimately coming under pressure. Overall, the market has faced downward pressure, resulting in considerable corresponding adjustments in rates. The Capesize timecharter average lost 20% over the week to close at $13,956.
Another softer week for the Panamax market as owners felt the recent pressure continue across all basins. Owners’ resistance was hard to find with early tonnage and ballaster tonnage continuing to discount. The P1A route hovered in the $8,000s all week, although this was being challenged with APS load port deals equating to a lot less by comparison. Activity ex EC South America was flat for index arrival dates, with earlier date arrivals heavily discounted by the armada of ballasters. Asia returned good demand overall, but rates eased over the week with the tonnage count surpassing any demand. Rates of mid-high $8,000s were seen for various Australia round trips on inferior to index types, whilst much of the Indonesia demand was absorbed by smaller/older tonnage rates going for around the $5,000/low $5,000’s mark. Period activity was minimal, although reports emerged of an 81,000-dwt delivery China achieving $15,500 basis 5/7 months.
A poor week for the sector with little fresh cargo appearing in key areas and tonnage availability growing steadily. The Atlantic saw the US Gulf and EC South America lose ground as the tables set in charterers favour, with owners forced to compete for the limited cargo appearing on the market. A 63,000-dwt was heard fixed basis delivery Brazil spot for a trip to Singapore-Japan at $15,000 plus $500,000 ballast bonus. Elsewhere an Ultramax was heard fixed delivery North Continent for a scrap run to the East Mediterranean at $13,750. It was a similar story from Asia, with very little Indonesia enquiry throughout the week and little fresh enquiry from the NoPac and Australia meant owners had to discount expectations to secure business. A 53,000-dwt open Vietnam fixing a trip via Indonesia redelivery China at $7,500. Further north, a 53,000-dwt fixed delivery North China for a trip to the Continent at $9,000.
Whilst the Asia region remained fairly steady with a delicate balance of enquiry to tonnage, the Atlantic has seen a general lack of enquiry leading to negative sentiment. A 35,000-dwt opening in Paranagua was rumoured to have been fixed basis delivery Recalada for a trip to North Brazil at $15,500. A 39,000-dwt opening upriver Plate was fixed for a trip to West Coast South America with an intended cargo of grains at $22,500. A 35,000-dwt in ballast from Vera Cruz was fixed for a trip basis delivery Barcarena to the East Coast of Mexico with an intended cargo of grains at $15,000. In the Mediterranean, a handy was rumoured to have been fixed for a trip from Tunisia to Peru at $12,000. A 32,000-dwt open in Lanqiao was rumoured to have failed on subjects for two laden legs at $8,850. Whilst a 38,000-dwt open in Busan fixed a round trip via the US West Coast at $11,000.