Fearnleys Dry Bulk Market Report

Capesize There are challenging days with rates more or less unchanged from last week; West Australia to China still below USD 3 pmt, and Tubarao to China in the upper 5s. In the Atlantic, the need for more cargoes is desperate. Panamax The Panamax market seems to be a bit toppish this week. The latest increase in rates has been led by elevated volumes and levels from the coming ECSA grain season. A good portion of the fleet is in ballast towards the grain ports, but charterers are holding back on 2nd half April stem to supress the recent rise. FFA’s have dropped below 5k for the remainder of the year, which in turn will put pressure on the period market. On another note, we see bunker prices increasing and this will most likely lead to higher USD/mt rates. TA’s are now paying excess 3.5k and still a nice premium for breach of INL cargo in Baltic at USD 4.5-5k. In the Pacific, rounds are being fixed at mid/high 4k. Supramax Supra rates have improved somewhat. Vessels are achieving USD 5000’s for trips with delivery in South East Asia. In the Atlantic, the rates from South America are firmer, with cargo to Europe commanding about USD 7000 for the leg. Front haul candidates achieve about USD 8000 with a 70-80k ballast bonus. Grain from the USG is about on par with South America, but petcoke cargos have to pay up a bit. All of these rates are for spot cargos, all forward business is heavily discounted, and we are not aware why this is, but it shows a lack of confidence in the market. Period is generally inactive as the availability of spot tonnage does not justify paying a premium to secure period cover.