Fearnleys Dry Bulk Market Report

Capesize Still very overtonnaged, despite increased idling/warm layup. With average daily spot unchanged at some USD 2800, less than half of OPEX, the fundamental question for many owners is why to bother keep propeller running. Substantial coa volumes concluded on the Tubarao/Qingdao run at equivalent to USD 4500 basis RV, but spot volumes keep disappointing on this conference trade. Similarly for TA, where coa discussions have hovered around the equivalent of USD 3k/day for 2016 and spot activity is close to negligible. Index-linked period remains a solution providing upside potential for typical tonnage providers, last exemplified by 180kdwt/2016 done ex yard for 11-14 months at BCI AVE 5 TC+19 pct. Panamax There has been some expectations of a seasonal upturn after the Chinese holidays and entry of “the year of the monkey”. However, market seems to continue its bumpy ride with the only exception being grains out of ECSA. Fronthaul has come up a fraction to hover around 6500+165k GBB bss APS alternatively about 4500 bss India/Spore rge dly. Otherwise, most business in the Eastern hemisphere is moving from APS to DOP although only in the poor 2k rge. In the Atlantic there is not much to cheer from either, although rounds are done in the 2-3k rge on TC and fronthaul up to above 6k bss DOP dly. Owners willing to do period are facing mid 4’s for same. Supramax In the Supra market, we see an increased activity level in the Eastern hemisphere mid-week. The Chinese are back from holidays and we do see a greater volume of cargoes being circulated. This put a side we still have an oversupply of tonnage, but stronger rates are being concluded after all. The 4k mark for trips Indo/India is not that far ahead and coal cargoes into China are increasing. In the Atlantic we do not see any market uptick in the same extent. Owners taking the re positioning leg into USG face rates barely covering bunker cost. A positive sign is fresh grain cgos ex ECSA for March dates which could help the TA market somewhat going forward. Period market is quiet and rates are still in the high 4k's.