Supramax
ATLANTIC
Many of the underlying trends of the previous week continued to apply this week. The Continent and Mediterranean markets continue to struggle due to an ongoing oversupply of ships combined with a consistent lack of demand.
The East Coast South America market remains flat.
Owners with prompt tonnage in the US Gulf are still finding life tough and considering ballasting to North Brazil or towards the US East Coast in search of better opportunities.
However, there are a few more fronthaul opportunities to be seen towards the end of August and into early September which might provide a glimmer of hope that the market might find a little more support in the coming weeks.
PACIFIC
Tonnage oversupply caused the market to tumble. Order volumes have seen a significant reduction, and negative momentum continued. Bunker prices fell as well along with freight rates. There is a feeling that these new levels might stimulate cargo movement, and perhaps this is one point of optimism owners can hold on to.
Handysize
ATLANTIC
CONT/BALTIC: The word to describe this week is poor. Activity has been slow, and all directions are down from the previous weeks rates. This is probably due to the holiday season and due to this unpredictable market.
MED: Plenty of tonnage around combined with limited number of orders. The amount of spot ships increased week on week, with rates coming off on several routes.
ECSA: All directions down a little week on week. The draft dropping a meter in one week will not help as charterers will increasingly have to turn to Supras to execute what previously could have gone on smaller sizes.
USG: There seems to be little activity in the USG/USEC.
PACIFIC
Market started slow with an abundance of vessels opening. As prompt positions mounted, charterers were reluctant to rate vessels, and owners quickly sharpened their pencils. Surrounding markets softened, resulting in low overall sentiment.
At the end of the week, there was a feeling that a floor had been found as charterers looked to fix on Friday rather than waiting till next week. We saw a few fresh cargos enter the market – that said, there are still plenty of prompt vessels around.
INDIAN OCEAN
It has been a quiet week despite some steel cargo tenders. Ships are spot in Indian Ocean and have started ballasting towards Southeast Asia or the Persian Gulf to secure cargo, but having hard luck there too as they have direct competition with ships opening in the area already in good volume.
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