Fearnleys Dry Bulk Market Report

Capesize Idling or layup are now very real alternatives to sailing even for owners of modern tonnage in this segment, and the number of units drifting or anchored is increasing exponentially.Vintage ships are practically excluded from trading, as preference is for modern units and mere economics simply don't allow for anything but optimal speed/consumption and draft/dwt ratios. With coal trading on its knees and iron ore volumes nowhere near absorbing available tonnage, average daily earnings dropped another 13% w-o-w to come in at an all-time low of USD 2700 - for those 180000 tonners that are still in service. No immediate relief is in sight, reflected by 206000 dwt/built 2012 fixing around USD 6500 for about 12 months. Panamax Another depressing week, with a market in steady decline all across the board in both hemispheres. The release of Chinese economy growth last year at 6,9 % did not inject any optimism in an already battered sentiment. For spot activity the overwhelming supply is outperforming the demand to an extent hardly seen before. Transatlantic rounds are well below 3.000 on T/C average, with all business concluded bss APS without BB. Fronthaul activity is limited, with levels arnd 6K. ECSA grains also moving slow with 5 + 90 done on modern Kamsarmax. The Far East is hovering around 3K + a small BB. Period activity is hardly evident with a year well under 5 K and a 12 months forward curve levelling out at 4.500 mid week. Handy The Supramax market has been more active in the east this week with freight still at unimproved levels. It is unlikely that the market can fall beyond present levels. Even with optimistic expectations for grain volumes from South America, the market is unlikely to improve for more than a seasonal spike. Owners are now willing to give optional years for period deals at flat rates, re-enforcing the negative vibes rattling though the market. Even if there is some contango in the futures market, it is essentially flat.