The Baltic Exchange, the world’s independent source of maritime market data, has issued its report for the last week, 5th – 9th June 2023, to provide information of the bulk market performance.
ccording to Baltic Exchange reports, highlights of capesize, panamax, ultramax/supramax, handysize include:
The week kicked off in the Pacific with a flurry of activity, with all three of the majors in the market from West Australia to China on similar dates. The market gained momentum with an increase in enquiry. Despite a lack of coal enquiry from East Coast Australia, the market remained resilient and rates continued to rise. By the middle of the week, there were expectations of a further push but this did not materialise, leading to a slight correction in rates. As the week drew to a close, the level of activity slowed, but the market has found a degree of stability.
In contrast, the Atlantic has been relatively quieter, although there has been a positive shift in sentiment and some resistance among owners, particularly among the vessels ballasting from the Pacific. Brokers reported improved bids for shipments from South Brazil to China, causing owners to reassess their position and leading to a notable spread between the bid and the offer.
A real contrast of a week for the Panamax market. The week began on a firm footing carried over from the previous week with sentiment remaining high. Supported by solid fresh demand in both basins, rates began to gain some gravitas. However, by mid-week the fragility seen in the market in recent weeks began to rear its head again, with bids retracting and, despite offers reducing slightly, a stand-off ensued as the week concluded. The Atlantic was generally led by fronthaul demand with end June arrivals ex EC South America achieving as high as $15,000+$500,000 bb delivery arrival port, whilst early July arrivals saw DOP rates on several occasions. Mineral demand ex Australia ably supported good supply ex Indonesia this week, with a bunch of deals concluded ex Australia for good design 82,000-dwt types at $11,000 but such rates appeared unachievable by end of week with Charterers stepping back.
A rather turbulent week for the sector with sentiment remaining poor in most areas. Despite a trickle of fresh cargo appearing brokers spoke of an excess of prompt tonnage available keeping rates in check while owners competed to cover their vessels. From the Atlantic, a 59,000-dwt was heard to have fixed a scrap cargo from the Baltic to US East Coast at $8,250. Further a 61,000-dwt fixed a trip from Greece to US East Coast with cement at $11,000. In Asia, as the week progressed a little more cargo appeared from Indonesia, although again this did little to change the negative feel. A 60,000-dwt open mid China fixing a trip via Indonesia redelivery China at $5,000. Similarly, a 63,000-dwt fixed a trip delivery Hong Kong via Australia redelivery Singapore-Japan at $8,000. Elsewhere, the malaise continued with the Indian Ocean also lacking positive sentiment. A 63,000-dwt fixing a trip from EC India to China with iron ore at $8,000.
With a general undertone of negativity and a lack of enquiry, both basins saw levels soften. A 28,000-dwt open spot in Iskenderun fixed basis delivery Port Said for a trip via the Red Sea to East Coast India with an intended cargo of petcoke at $6,250. A 37,000-dwt was rumoured to have been fixed for a trip from the US East Coast to Turkey with an intended cargo of scrap at a rate between $8,000 to $9,000. In Asia, a 32,000-dwt opening in Thailand was fixed via Australia to Southeast Asia in the low $7,000s. Whilst a 29,000-dwt fixed from Bunbury to Vietnam with an intended cargo of grains at around $12,000. A 40,000-dwt newbuild opening ex-yard in Japan was fixed for a trip to the Continent -Mediterranean at $10,000 whilst a 38,000-dwt opening in CJK was rumoured to have fixed via South Korea to the Philippines with an intended cargo of gypsum in the low $7,000s.