Fearnleys Dry Bulk Market Report

Capesize As everyone is getting ready for the Chinese New Year, already depressed rates are under further pressure. West Australia to China has been concluded at USD 2,85 pmt and the c3 market remains inactive. Period rates for one year remains in the low USD 5,000s. Owners are exploring the opportunities for laying up tonnage but so far few ships have actually been laid up. Panamax Freight rates remain at historically low levels. In the Atl basin we have seen a decent flow of cargoes this week but they covered at rock bottom levels. Only flashes are grains from USG and ECSA paying up from last week. Fertz from Baltic to China pending arnd mid teens which give the owner less than 5k in return on tc. With China new year coming up, we anticipate activity to drop further in Feast. Nopac business paying arnd 2,5- 3 k aps and Aussie/China paying arnd 3k +40 aps. Some periods with wide spreads concluded and we estimate good Panamax obtain 4250 for 6-7 mos upto 1 year now. There are a lot of insecurity around and many owners have to renegotiate hire rates in order to survive the coming months. Handy Supramaxes do not see any light at the end of the tunnel. It seems that the market moves in line with the bunker prices and as such has actually see the bottom. With period fixture in the mid USD 3000’s and small movements in the trip rates still in the USD 1000-1500 level, there is little reason to rejoice. Having said that, the market can only go one way, and as such we may see upward movements on the back of seasonal demand, but it is unlikely to be sustainable.