Fearnleys Weekly - Dry bulk

Chartering - Supramax

Activity in the Supramax market has been more active this week and the rates has increased slightly all over, especially the rates from US Gulf were more cargoes has pushed the market. Within the Atlantic, we have seen more interest for period tonnage, but little has been done so far. In the Pacific, the coal trading has been reported as more active, but little has been reported as clean fixed. USG to China is atm paying around 20k’s, while the same trip to Skaw/Passero is around 15k’s. A transpacific RV is now priced around 8k’s, while a nickel ore trip to China via Philippines is priced at around 9k’s.

Chartering - Panamax

Activity in the Panamax market has increased gradually in both hemispheres this week. Grain out of ECSA has again been the driver, but general activity in the Pacific and the Atlantic has been stronger. More cargoes in the north Atlantic has changed the sentiment somewhat to a slightly more positive trend. TA and FH rates are respectively at levels around high 8k’s and high 14k’s. The activity out of South America has again picked up, and is a key feature to keep the momentum up in the coming weeks. More activity in the Pacific has pushed the rates for a transpacific RV to mid 8k’s. There is a lot of expectations in the FFA market, Aug is priced at high 9k’s, while Sep/Oct is priced around 10k’s on the P4TC index.

Chartering - Capesize

Signs of recovery, but still dark days for owners of the big ships. High iron ore inventories, modest coal flows and general/seasonal volumes dip in commodities trade, coinciding with moderate congestion and a continued tonnage surplus, resulting in challenging times and consequent earnings at or even below OPEX. Spot levels on average unchanged at a miserable USD 7200/day w-o-w, with notably transatlantic trades now suffering the most. For obvious timing-wise reasons, period activity at fixed levels is insignificant - with the exception of 180k dwt/built 2007 delivering Zhoushan mid July done for 4-7 months at USD 11k and 177k dwt/built 2010 at Yantai mid July done for similar duration at USD 11,750.

Activity level

Capesize Panamax Supramax
Moderate Active Stable

Rates

CAPESIZE (usd/day, usd/tonne) This week Last week Low 2017 High 2017
TCT Cont/Far East (180' dwt) 17,600.00 17,900.00 12,000.00 35,000.00
Tubarao / R.dam (Iron ore) 4.00 4.85 4.00 8.25
Richards Bay/R.dam 4.00 4.70 4.00 7.60
PANAMAX (usd/day, usd/tonne)
Transatlantic RV 9,000.00 8,500.00 5,600.00 14,800.00
TCT Cont / F. East 15,000.00 14,500.00 11,600.00 21,000.00
TCT F. East / Cont 3,200.00 3,000.00 2,500.00 8,600.00
TCT F. East RV 8,500.00 8,000.00 2,500.00 12,000.00
Murmansk b.13-ARA 15/25,000 sc 6.75 6.45 5.00 7.45
SUPRAMAX (usd/day)
Atlantic RV 10,100.00 10,000.00 9,400.00 12,000.00
Pacific RV 7,000.00 7,200.00 3,900.00 9,200.00
TCT Cont / F. East 14,000.00 14,000.00 12,000.00 18,000.00
1 YEAR T/C (usd/day)
Capesize 180,000 dwt 12,500.00 12,000.00 10,250.00 16,500.00
Capesize 170,000 dwt 10,750.00 10,500.00 8,650.00 14,250.00
Panamax 75,000 dwt 9,000.00 9,000.00 7,250.00 12,400.00
Supramax 53,000 dwt 9,000.00 9,000.00 6,600.00 9,300.00
Baltic Dry Index (BDI): 859 previous week: 847

Sales and purchases

Vessel Size Built Buyer Price Comm.
Cape Frontier 180 201 2006 Greek Intrests 17,00
BBG Glory 82 062 2013 Undisclosed Undisclosed
BBG Hope 82 044 2013 Singaporean (Wilmar) 29,00
BBG Future 81 700 2014 Singaporean (Wilmar) 29,00
Sunrise Sky 58 100 2012 Taiwanese (Wisdome Marine Lines) 14,70 incl. 7-yr BB
Elektra 53 260 2005 Undisclosed 7,50
Zheng Yuan 9 11 455 2009 Chinese Interests Undisclosed
BO JI 23 000 2010 Chinese Undisclosed