Fearnleys Dry Bulk Market Report

Capesize The bloodbath continues, despite healthy activity on the Brazil/China iron ore marker trade last few days. Average daily earning for standard 180000-tonners dipped as far as USD 5k before stabilizing at a sad USD 7k, still hardly covering opex and describing a Q4 development extremely far from (other) analysts predictions. This segment remains overtonnaged as mineral trades into China fail to meet expectations, and dramatically increased scrapping more and more appears the only way to get back to equilibrium. Medium-term FFA's are backwardated, forcing some owners under pressure with few options except concluding period at unprecedented lows - last exemplified by 175000dwt/blt 2010 done for 11-15 months at USD 7k. Panamax A fair flow of fresh requirements early week managed to bring a tiny scent of optimism in the market. Also, Owners resistance to contribute to fix all time low levels have resulted in some small improvements. “For how long” is a common expression among the players. T/A rounds up to above 3.000/day. Fronthaul close to 9.000 although USG/PRC grains only paying arnd 26. ECSA activity limited and challenging for Owners, where fixtures are done from mid 5 to mid 6 + 190 APS. NOPAC rounds and Aussie->India done well above 4.000 on Kamsarmax. Shorter runs in the eastern hemisphere still in the low 3 + a small BB bss APS. Period market has not improved either on levels or volume. Short/medium period still under 6.000/Day. Handy The Supra market continues in the doldrums. There is no short period market, and the levels available for longer period are unattractive to owners. Even though the number of vessel apparently open prompt in SE Asia has halved in the last week, there is no sign of improved rates. This has been attributed to owners “hiding” vessels and thus the picture is not entirely correct. In the Atlantic the numbers continue to be depressed, and not immediate sign of any recovery. We can only hope that grains from South America will add sorely needed ton-miles to the market. The question is if this will be at the expense of other supply areas due to slow demand for soya beans.