Fearnleys Dry Bulk Market Report

Capesize Increased iron ore prices created a positive sentiment across the market beginning of the week. Along with higher bunker prices, rates as well as activity were improving. However, as so often in recent times, it did not take long before things calmed down. The West Australia to China route has so far this week been fixed in the range of USD 2.95 to USD 3.05. Demand out of Brazil to China has picked up but rates are still relatively low, presently in the mid 5s pmt. The oversupply of tonnage is apparent. Panamax The market have proven signs of being alive. Propelled by ECSA activity and elevated levels up to average 6500+150 GBB APS both fronthaul and the Far East have come up substantially. As owners in India-Spore range now also able to secure 5k DOP for long grains hauls via ECSA, Aussie and Indo rounds naturally move up as well. NOPAC and Pacific rounds well into the 5k range accordingly. All above, gently assisted by a push on the forward curve, fuelling period interest in the eastern hemisphere with short period at mid 5k and 1-year done at low 5k. The Atlantic is more active although not to the same extent, giving Owners an improved 3k on TC. Fronthaul from Atlantic paying close to 7k. Supramax There is a marked improvement in the supra market. Early South America loaders have dried up and there is a premium to be had for the moment. Also in the Indian Ocean vessels are now commanding numbers which equate into the high USD 4000’s basis delivery East Coast India. In the Pacific, volumes have been good and numbers are on the increase. The Atlantic trade from the East Med to the USG which was a “bunkers only” market, is now up at USD 1500 daily. The Continent has also picked up, but front hauls from this area are still in the USD 7000 level, whereas from the USG the numbers are in the USD 8000’s. Most of the recent upward movement is attributable to the grain market.