Bulk Carrier Freight Market Overview (3 October 2019)

China-connected trade seems to be having a modest turnaround on Capesize business, though it is still not quite clear as to its sustainability or underlying cause beyond simple sentimental recovery. Pacific RVs, at any rate, mount another US$ 1,000 jump at midweek to hit the US$ 22-23,000 daily range even with few, if any, new fixtures to justify the rebound. Kamsarmaxes remain on the fore of front haul biz from South America with APS rates still just under US$ 17,000 daily plus US$700,000 BB—but widely expected to break that wall before the week is over. Activity is still just strong enough in the Pacific to keep RVs over US$11,000 daily, though with some eastern holidays in swing, there are some doubts as to the persistence of said activity into mid-October.

Grain cargoes are keeping the Supramaxes occupied in Western Europe with a Supra having been fixed recently from La Pallice to West Africa with Sometra at a tick over US$ 19,000 daily. Nonetheless, grains and other agri-prods have been arriving too slowly on the deepsea market to keep Atlantic-based rates from sliding further as Black Sea front hauls slip to US$ 28,000 on modern tonnage. USG front hauls have dropped to around the same level, both having shed about US$ 500 at midweek. Eastern rates re­main far more resilient with activity steady and Indo rounds unmoved within the low US$ 12,000s area. When China gets back into action next week, there is a good chance that eastern Supra rates will be pro­perly reignited from their current flat-lining status.

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