SUPRAMAX
ATLANTIC
A large number of vessels were fixed in the US Gulf this week. Despite the significant clear out, it remains to be seen whether there is sufficient demand to improve the fortunes of the vessels that are left.
Elsewhere within the Atlantic the tone remained similar to the week before. The availability of panamax tonnage maintained an upper limit on the South American fronthaul market
PACIFIC
Negative sentiment that trickled in from last week coupled with a holiday in Singapore resulted in a sluggish start. A drop in rates and corresponding dip in commodity prices resulted in a few forward date cargo and COA enquiries entering the market. As the week progressed there was a slight pickup in activity, and paper creeped up slowly which led us to believe that the market may have bottomed out, closing on a flat note with a slight hint of positivity.
In the south, the beginning of the week was met with an oversupply of tonnage and continued lack of cargo support. Rates were discounted, however this pattern took a slight turn later in the week. This may have been partly triggered by the mid-week news flash of a potential Indo coal ban (as some miners failed to fulfil the domestic quota) which could have given Chinese and Indian buyers a reason to conclude a few trades sooner.
Thin cargo volumes in the north coupled with NoPac cargos still covered by ships on the coast, meant that backhaul rates continued to take a tumble.
Lack of activity on the Aussie and period fronts. The very few Aussie orders entering the market were eventually covered by own tonnage. The volume of period enquiries was minimal, and the slight increase in paper during the week made owners not want to discount any further.
HANDYSIZE
ATLANTIC
The market continued to fall bit further across the board. One could speculate it has something to do with us being in August when many people have covered their vessels/cargoes where possible and are enjoying the sun somewhere. Here is how we saw the market this week:
CONT: Has not tanked far off where it was last week, but it is by no means strong either. The fixture rumours have been quiet this week, but perhaps that is due to owners wanting to keep rates away from the public eye.
MED: Not doing much better. Spot vessels have been struggling to find employment, and forward vessels are sniffing around for cargoes off market as they try to keep tonnage lists short in the area.
ECSA: Notoriously stronger than Atlantic markets, has also not been too hot this week.
USG: Not flying out with reported fixtures either. Still quite a few vessels in the area and not much cargo. Hopefully, we see rates come up steadily as people come back from their breaks.
PACIFIC
A flat week, largely due to holidays in Singapore and Japan. This softened activity levels and prevented any meaningful momentum from building. As the ‘Summer Doldrums’ finally draws to a close, it is hoped that a floor has been reached, and that levels should firm as we progress deeper into Q3.
INDIAN OCEAN
Yet another flat week which started with lack of activity due to holidays in Singapore and India. Some steel cargo tenders were held this week, but rates were too low; yet operators managed to secure the ships due to less demand in the area. East Coast India has come to its lowest phase in the last 1.5 years.
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