Handy Bulk View by BMTI’s Continental Correspondent (18 Dec 2019)

handysize vesselThe chartering market off the Continent has been pretty busy for the larger Supra-Ultramax tonnage. Front haul rates have been reported agreed at US$ 20,500 daily on Ultra tonnage for a trip to China. Even for Baltic rounds with delivery Rotterdam and redely North Spain have been done at the equivalent of US$ 14,000 daily. Ultra owners were rating trips to West Africa at US$13,000 daily with Ireland deli­very. An Ultra open West Med was also competing for the same business at US$ 11,500 with delivery Gibraltar reflecting the poor state of the med market. The Kamsarmax market is in a downward spiral. Trans-Atlantic is now at US$13,000, which line will be hard for the owners to defend. It is likely to con­tinue dropping. DOP rates can no longer be taken for granted for USG business. Charterers prefer to pay a ballast bonus. From the lacklustre Black Sea, grain charterers booked a cargo of about 50,000mt from Ukraine to GNS at the daily equivalent of US$7,500. The USG Handysize market is considered stable if quiet. Coal charterers were fixing a 38,000 dwt ship to Italy at the daily equivalent of around US$13,000. From New Brunswick a 38,000 dwt has been fixed on subs at US$ 10,000 daily for a trip to UK-Continent.

From ECSA, tonnage of 38,000 dwt has been fixed in the range of US$ 15,500-16,250 daily for trips to WCSA. The numbers for trips from ECSA to USG for 35,000 dwt tonnage are hovering around US$ 10,000 daily, although a 33,000 dwt was confirmed at US$ 9,250 daily, also for this run. A 30,000 dwt was taken for a trip to the USEC at US$ 10,250 daily.

There seems quite a number of Ultra and Supramax­es ballasting from the Indian Ocean towards ECSA hoping to find suitable employment after having burned all the dirty bunkers, for which such a voyage of course is ideal. An Utramax front haul was done for 5-15 January dates, but details remained sketchy. Regrettably, the East compares poorly with the At­lantic, which market is not free from flaws either, but the average income looks much better. Owners of a 20-year-old 32,000 dwt were seeing US$ 4,000 for a trip from S.Korea to E.Africa, which the owners would do at US$ 5,500-6,000 daily. From ECI to Vi­etnam 32,000dwt tonnage was offered at US$ 7,500 daily, not attracting charterers. Coal charterers’ rate for a 58,000 dwt bulker ex-S.Korea via CIS was close to US$ 6,000 daily, which is less than last-done.

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