Fearnleys Dry Bulk Weekly Report

Fearnleys Dry Bulk Weekly Report Capesize Q4 remains a continued disappointment for those believing in or depending on a strong finish to an otherwise miserable year. Coal trades are since long generally in limbo, spot iron ore volumes less than moderate. Tonnage utilization again down as market clearly overtonnaged in all areas, taking daily average earnings down 12% w-o-w to USD 9300 for 180000-tonners. For the marker trade WaustChina, present spot levels of around USD 4.75 pmt are now equivalent to t/c-returns hardly covering OPEX. Lack of short and long term confidence is reflected in a soft forward curve, making resultant fixed period levels prohibitive for most tonnage providers - increased spot trading and index-linked deals expected. Panamax The Atlantic market have found a floor at 5k as owners resist to fix lower rather than volumes of fresh demand. North Atlantic fronthaul is limited but give owners healthy 11-12k in return. USG activity not strong enough to support inbound supply, seeing 12+200 bss APS. ECSA grains still moving with levels typically holding at fair 7500+220 passing COGH. Softening in the eastern hemisphere with surplus of available tonnage. Most rounds hovering around the USD 5000 p/d mark. The forward curve gives less arguments to grab tonnage for period. Wide spreads as 4-8 months done at 6500. A good LME fixed 6800 for 11-14 months. FFA for 2016 at 6500 is still USD 600 above ytd poor 5880 4TC avarage for the sector. Handy The same flat and unexciting market continued into this week. Mid-week we see more grain stems ex USG and ECSA, which could put a pressure to the rates. Meantime, TA rates are hovering around USD low 7's. USG/China is being fixed in region of USD 14.000 for the Suezmaxes. In the Far East we see Supras being fixed in the low 7k range for shorter period, while short Indo/China rounds are being fixed sub 5k.