Fearnleys Dry Bulk Market Report

Capesize Long suffering from extreme market imbalance not seen for 3-4 decades, focus is divided between spot challenges and concern for big and medium industry names struggling to survive. Daily spot earnings have dipped a further 10-15% w-o-w to an apocalyptic $2200, and for certain main trades including West/China the actual return is less than $1k/day basis today's conference rate of a meagre $2.95/3.00 pmt. Mineral volumes keep on disappointing for both fronthaul, transatlantic and -pacific. Period at new lows remain the only relevant alternative to layup for a number of owners, most recently exemplified by 179kdwt/built 2011 done for 11-13 months at BCI AVE 5 TC for 1st 30 days then $5350 for balance. Panamax The Panamax market continue at historical low levels. However, we saw increased activity in both hemispheres during the last week. Atlantic basin more active with coal, iron ore, bauxite and grain shipments. Fronthaul activity firmed a bit last week mainly with grain as driver and rates around 6500+160k for ECSA/Far East. Pacific basin also more active and firmer last week. Nopac rounds paying around 4000 del Japan. Aussie/Indo rounds paying in the high 4k delivery Aussie. Aussie/China rounds paying around 3k. Period fixtures still limited these days but some 10-13 and 11-14 months periods concluded at 4850/4900. Supramax In the Pacific, the market is a bit firmer; vessels are fixing basis DOP rather than arrival load port. Levels achieved are in the low USD 4000’s, whereas Ultramaxes are asking mid USD 5000’s. The East Coast South America market is helping the Indian Ocean market by drawing tonnage out in ballast towards the grain load ports. On the USG to India petcoke run, rates are also firming and high USD 8000’s are now the fashion. Period is still slow and the general levels are in USD 5000’s with a front-end discount to tempt the takers.