Handy Bulk Market Overview (29 Sep 2023)

bulk carrierThere has been increased talk of a weaker feel and owners’ willingness to compromise, which does not stop the market to become an intense battle ground for tonnage in the medium and long term future. The technical challenge to meet the decarbonisation standards is one problem, but the costs involved to meet these new standards could force many owners out of business. Thus, the owning landscape could be up for a profound change. As a consequence, as outlined earlier this week, decarbonisation might lead to a temporary lack of tonnage and, as a consequence, could severely hamper global trade. At any rate, the spot market remains in good health, despite a weaker sentiment. Off the Continent, a 28,000 dwt vessel got fixed at US$ 13,500 daily for a trip to the eastern Med. Handysize freights for trips to West Africa are hovering at around US$ 18-20,000 daily.

From the East Med, Ultramax tonnage was available at US$ 22,000 daily for a trip to West Africa with clinkers. The owners of a 25,000 dwt are still hoping to find charterers paying a rate equivalent to US$ 15,000 daily for a trip within the Med-Black Sea-Continent range. The vessel is spot and owners have decided to wait until next week. Fertilizer charterers are still looking for a 30,000 dwt for a trip from the Med to Brazil. Despite a weaker feeling tonnage is still expensive and is not abundantly available. Fertilizer charterers took a 35,000 dwt vessel from South Spain via Morocco to Bangladesh at a fruity rate of US$ 23,500 daily. A 3-5-month period deal was put together on a 33,000 dwt ship with delivery Med and redelivery Atlantic at US$ 12,000 daily. Handysizes in ECSA are facing headwinds with demand slowing down and owners occasionally facing a spot vessel waiting for a couple of days for next employment. A rate of US$ 14,000 daily as agreed on a 38,000 dwt ship for a trip to West Africa is not exciting and neither are the US$ 12,500 daily agreed on a 34,000 dwt ship for a trip to North Africa. From West Africa, tonnage of 53,000 dwt got fixed at US$ 23,000 daily for a trip to China, which similar rate was agreed on a 55,000 dwt for a trip to EC India.

Some activity has been reported from South Africa, where charterers were rating tonnage of 58,000 dwt at US$ 16,000 daily plus US$ 160,000 BB for a trip to PG-Japan range whilst holding similar tonnage at US$ 17,500 daily plus US$ 175,000 BB. Ultramax tonnage was rated at US$ 20,000 daily plus US$ 200,000 BB for a trip to ECI. There have also been rate exchanges basis delivery Chittagong for an SA round voyage at US$ 12,000 daily versus US$ 18,000 daily on Ultramax tonnage. The US Gulf looks still okay with an Ultramax done at US$ 25,000 daily for a trip to the East. Even a 55,000 dwt commanded US$ 21,000 daily for a trip to China.

In the East, back haul business was done on a 57,000 dwt at US$ 11,000 daily for a trip from China to the Continent. Nickel ore charterers took a 57,000 dwt at US$16,000 daily from China via P.I. back to China at US$ 16,000 daily. A rate of US$ 17,000 daily was established on a 63,000 dwt vessel for 2-3 laden legs employment with delivery Vietnam. The owners of a 29,000 dwt Handysize were proposing US$ 6,000 daily for a quick trip from Vietnam to Singapore.

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