Fearnleys Dry Bulk Market Report

Capesize Its has been a positive freight market for the past few weeks, however this week the market is taking a small breather. The activity level has dropped and freight rates followed. The main driver of the latest market increase has been the high activity from the west Australian mining companies. This week the activity on this route have slowed down, and the wc Aussie/China freight level have dropped rom around usd 4 pmt to usd 3,70 pmt. Though the Atlantic market is also showing more positive tendencies, with higher activity and increased freight rates. Despite a small dip down again now in the Cape market, it is for the first time this year a bit more optimism in the market. Panamax The Panamax market continues to firm in both hemispheres this week. The grain season out of ECSA is the main driver, and has again put pressure on the North Atlantic. It was rumored mid week a Kmax had fixed 11k APS SW Pass for a tct to Continent. Another Kmax fixed USD 6,650 retro Spore for ECSA/Feast while NoPac rounds are being fixed in the low/mid 4k. The lack of early ships force charterers to fix ballasters and if we take into consideration the number of ships that are tied up in the long duration of ECSA/Feast, we do believe in a firm couple of weeks ahead of us. The period market is back into play and a kmax fixed at USD 6,300 for abt 11/15 mos. Supramax Supra numbers have improved across the board. Notably grains from East Coast South America are commanding high numbers. Also positions on the continent are getting big numbers for scrap cargo. The USG market which was lagging has now turned the corner and now paying improved numbers albeit the cargos are mainly petcoke. The short period market is still relatively active and good units now can expect to achieve something starting with a USD 6 in front. The transaction volume in the East is slowing leading players to believe we may have reached a temporary top.