BMTI’s Handy Bulk Market Viewpoint (15-June-2017)

HandysizeThe chartering market is devoid of enthusiasm. The brief respite of increased demand earlier this week seems to have been misread as a trend reversal. On the other hand the gathering of shipping people in Greece and in Bergen certainly contributes to the slower conditions. From the Baltic, timber charterers are likely to put in own tonnage of 33-35,000 dwt for a trip to east med rather than taking in market tonnage. Grain charterers would like to cover 25,000 mt wheat from GNS to South Africa at US$ 22-23/mt, which given an earlier fixture of 45,000mt from the Baltic to South Africa at US$ 26/mt looks a bit silly. A 34,000 dwt was fixed to the USG at US$ 6,500 daily. Scrap charterers are trading Supra ton­nage at around US$ 10,000 daily to the eastern Med.

The Black Sea market remains a rough patch for the owners, of which the odd owner still manages to do better than expected. There have been rumours of a 33,000 dwt fixed beyond US$ 7,000 daily for a trip from Black Sea to the Med. Glencore are linked with Polish tonnage to cover a 28,000mt wheat cargo from Ilyichevsk to Italy in the region of US$ 11-12/mt. Other grain charterers talking voyage rates equivalent to US$ 4,000 daily APS Black Sea for a trip to the Continent on Supramax tonnage. Salt charterers were talking the same number for this type of ship for a trip to the US Gulf. Supramax rates from the East Med to West Africa are likely below US$ 8,000 daily now, whilst from the West Med the rate is sill hovering around US$ 8,500 daily.

The ECSA sees improving numbers with Ultramax tonnage fixed at US$12,500 daily plus US$ 250,000 BB for front haul. But the sustainability of this present trend has already become questionable. Prompt and spot tonnage is also noticeable in the US Gulf, which sheds some light on the more challenging conditions for owners there. On top of this ballasters from the poor WCCA area have the potential of a further undermining of this market.

In the East, demand for Supramax tonnage continues to improve, slowly though. Period rates are hovering around US$ 7,500 daily for a decent 57-58,000 dwt bulker. A 57,000 dwt was taken from Thailand via Indo to China at US$ 7,000 daily. Chinese domestic coal consumption has propelled rates to around US$ 10,000 daily for a coastal round voyage or to around US$ 15,000 daily for a trip from north to south, hence the market is bereft of Chinese flag tonnage employed in this attractive coal trade. There is no change as far as the Handysize market is concerned. Charterers keep sticking to US$ 5,000 daily on a 34,000 dwt for a trip via CIS to Southeast Asia. And for a vessel which meets all the requirements to load a complicated cargo a rate of around US$ 6,000 daily for an Aussie RV on a 29,000 dwt can’t be ruled out.

…continue reading in today’s BMTI Daily Report.

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