The Baltic Exchange has issued its report for the week of 7th to 11th of August 2023, to provide information of the bulk market performance.
altic Exchange informs the week started with the usual slow pace on Monday, but it quickly picked up momentum. In the Pacific, the underlying sentiment remained positive, with two out of the three major players actively participating from West Australia to China. Rates on C5 showed improvement, rising by approximately 15 cents at the beginning of the week. The Atlantic market, while limited in activity, showed optimism in the South Brazil to China region, particularly for end August loaders. As the week progressed, a slightly mixed tone emerged as Singapore’s National Day holiday approached. Activity levels varied, with some days showcasing increased participation while others remained quiet. After the holiday in Singapore, the market saw the re-entry of two major players in the Pacific, alongside an increase of operator cargo. However, despite increased activity, the supply of available tonnage gradually started to accumulate due to the reopening of several Chinese ports following last week’s typhoons. As a result, rates encountered difficulties and registered a decline towards the end of the week. In the Atlantic, the week’s start had been robust, especially from South Brazil to China. However, as the week proceeded and dates shifted slightly forward, activity levels in this region diminished. Despite this decline, market conditions have demonstrated resilience as the week draws to a close.
A stronger week overall as tonnage availability remained tight in the North Atlantic, which led to further strengthening for both trans-Atlantic and front haul runs. An 84,000-dwt fixed from Jorf Lasfar via Ponta Da Maderia to the Western Mediterranean at $15,500. The South Atlantic showed appetite for both August and September tonnage, which also drew tonnage from further afield, while an 81,000-dwt fixing retro sailing Krishnapatnam trip via EC South America redelivery Singapore-Japan at $13,800. Whilst an 80,000-dwt was fixed basis delivery end August for a trip from EC South America to Singapore-Japan at $16,250 plus a ballast bonus of $625,000. In Asia despite local holidays the market remained firm, an 84,000-dwt fixing delivery Japan for a NoPac round in the mid $11,000s. Better levels of enquiry from the south saw an 81,000-dwt open Koh Si Chang mid-August fix a trip via Australia redelivery China at $10,000. Period activity was again in demand an 80,000-dwt open Haldia fixed for one year at $13,500 with worldwide redelivery to a grain house.
A rather more positive week than of late, with better levels being discussed, brokers said. The Atlantic saw positional opportunities from the US Gulf whilst from the South Atlantic more enquiry was seen certainly for the larger ultramax. From Asia, a slightly mixed bag with more activity was seen at the beginning of the week prior to the Singapore holiday, a tightening of prompt tonnage availability ensued helping to maintain a more positive feel despite relatively low activity from the North. Period activity was seen, with a 64,000-dwt fixing delivery Mediterranean for minimum nine months to maximum 12 months trading redelivery worldwide at 115 % of BSI. In the Atlantic A 63,000-dwt was heard fixed for a trip delivery SW Pass redelivery Atlantic Colombia at $9,000. Further south a 63,000-dwt fixed in the upper $13,000s plus upper $300,000s ballast bonus for an EC South American fronthaul. From Asia, a 63,000-dwt open China fixed a NoPac round at $8,750. Elsewhere, a 63,000-dwt fixed a trip from East Africa to Southeast Asia in the mid $10,000s.
More activities were seen as the week progressed leading to gains across both basins. In the East Mediterranean, a 37,000-dwt fixed basis passing Canakkale via the Black Sea to the West Mediterranean at $7,400 with an intended cargo of grains. A 34,000-dwt fixed from the French Bay to Abidjan with grains at $7,200. In the South Atlantic a 37,000-dwt was rumoured to have been fixed from Paranagua to Cadiz with a cargo of sugar at $9,500. In Southeast Asia, tonnage availability was said to have tightened and a 34,000-dwt logger type opening in Thailand was fixed for two laden legs at $10,500 whilst a 38,000-dwt was fixed from Port Kelang to China at $7,250 earlier in the week. Period was also active with a 28,000-dwt opening in Kuchin was rumoured to have fixed for three to five months at $7,000 for the first 45 days and $8,250 thereafter.