Supramax Commentary
CONT/MED/BSEA
While the number of visible ultras is slightly on the decline, the large amount of supramaxes available at the Baltic and Continent continues to keep pressure on levels, especially towards early September and so a significant recovery seems unlikely in the short term.
The Black and Med Sea are experiencing a bearish push. The Ukraine cargoes are still there and most of them are sub-sale. There were limited fresh cargoes put on the market which outbalanced the number of ships in the area. The overall sentiment seems to be negative among the players.
ECSA/WAFR
The South Atlantic market seems somehow inconsistent in fixtures this week thus giving mixed signals to the players and Levels seem very much dependent on the laycan. East Coast South America is less oversupplied compared to West Africa and thus trades at slightly better levels, but overall, the feeling is bearish.
USG/NCSA
The week continues with limited activity – few ships were covered the last days, mainly opening promptly/beginning of September, while at the same time the tonnage list is getting longer and there are very few cargoes entering the market. To add, we see a lot of interest in forward cargo rating.
PACIFIC
The week started with enthusiasm after last week’s push, when the market improved across the board. Coal demand ex SE Asia is still strong, while the tonnage list for spot ships thinned out for spot ships, and backhaul volume remained similar. Longer Pacific rounds started to weaken towards the end of the week.
In the Far East, the positive sentiment turned by mid-week. Reduced Pacific Northwest requirements coupled with open tonnage on USWC saw the spread between bids and offers widen. Even though the market came off, Pacific Northwest rounds were priced higher than Australian rounds which were covered with ships in the south.
Indo coal demand remains strong. The positive momentum from last week continued, and we saw stronger numbers being fixed. Especially on the spot side we witnessed high activity. Whilst spot tonnage has been cleared out, sentiment for forward cargoes is more bearish due to a longer position list and charterers in no rush to fix.
Handysize Commentary
CONT/MED/BSEA
Generally, the Continental market appears to continue with a downward trend this week. While there has been a constant output of grain cargoes in the Baltic Sea, the same is not balancing out the upcoming number of vessels. Premium rates were still heard from cargoes with a Russian background, which remains with a potential sanction risk and therefore something for a selected number of Owners.
Not much activity has been reported on the Med-Bsea market since beginning of the week, we are seeing less grain cargo compared to last week. Only few steels and minerals were out and not enough to cover the tonnage pending in the area. Market actors are expecting rest of august to remain flat and maybe a bit more grains and steels for September.
ECSA
The market remain bearish and the main routes drop each of about 2000 usd compared to last week. The sentiment in ECSA for the coming month is bearish as well. The lack of fresh cargo orders and the substantial number of ships remaining in the area result in numbers tanking quickly and owners willing to fix and forget. Furthermore, there are plenty of ships that are still spot or very prompt which isn’t helping the market regain its footing.
USG
Another week with a depressed market in the North American market. Although vessels are being fixed more vessels keep coming out and charterers hold back till the last to fix prompt.
Were as the expectations to Q4 was positive only a few weeks ago, we do hear fixtures forward for 2h half September at being fixed with a minimum of premium this week.
Routes on handysize vessel that usual pay a premium (USG/WCSA) are being traded at equivalent and below what a TA pays. We expect no improvement on rates for the next couple of weeks.
PACIFIC
Spot market levels maintained while sentiment softened this week. This was largely caused by the hot sentiment from the previous week cooling and the influence of dropping spot levels in the Smax sector. The immediate short-term remains uncertain.
INDIAN OCEAN
As an agricultural country India and Bangladesh importing many cargoes from various destinations while on the export side not much cargoes are moving out of India and Bangladesh. Ships are remaining spot in Indian Ocean due to less demand and keep ballasting towards Singapore or South Africa but still not able to get good money to justify their ballasting cost.
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