The ECSA Supramax/Ultramax market shows limited fixing activity this week. April cargoes have been already covered, while May tonnage supply is growing. Charterers keep voicing low ideas and seem to be not in a rush to fix, waiting for the market to fall even further for May dates. Note that the number of new F/H cargo offers for Supramax/Ultramax fleet is smaller this week. As of now, there are F/H offers for ECSA grain and sugar shipments to China and Bangladesh with 1H-mid May laycans; there are also some requests for mineral transportation from WAfr to China with 1H May laycans. Note that Upriver draft has already decreased to 8.5 m (vs. 9.33 m last week), and owners of shallow draft vessels are asking for a premium, but without any success so far.
TCT rates for Supramax fleet bss dely ECSA redel Spore-Japan are voiced at $9-10k daily + $90-100k bb. Charterers are voicing at best low $11s k daily + low $100s k bb for Ultramax vessels bss dely ECSA redel Spore-Japan with 1H May laycans. Deals for Supramax/Ultramax carriers bss dely ECSA redel WCSA are discussed at $10-11k daily. An Ultramax ship has been chartered at $11.5k daily bss dely WAfr redel China. The deal for an Ultramax shipment of 60,000 t of grains from Brazil to SE Asia with May dates is discussed at $24-26/t.
The transatlantic segment still lacks new cargo offers and relevant rates keep falling as the tonnage is building up for May dates. As of now, there is just a handful of grain offers for shipments from ECSA to Med and Baltic with 1H-mid May laycans. Supramax transatlantic TCT rates are hovering within $6-7k daily. A 58k dwt vessel has been fixed at $6.5k daily bss dely ECSA redel WMed. Deals for Ultramax fleet bss dely ECSA redel Med with May laycans are discussed at $7-7.5k daily. Charterers are aiming at low $6s k daily for an Ultramax carrier bss dely ECSA redel Baltic. An Ultramax ship has been fixed at $7.5k daily bss dely ECSA redel Skaw-Passero, while last week an Ultramax vessel could get low $8s k daily on T/A routes. An Ultramax carrier has been fixed at $7k daily bss dely ECSA redel RSea. The contract for shipment of 50,000 t of grains from Uruguay (2 loading ports) to Egypt with mid-May dates is discussed at $17/t vs. $18.5/t. The deal for transportation of a Supramax-lot of grains from Brazil to Egypt with 1H May laycans is discussed at $14/t vs. $16/t. The contract for shipment of 40,000 t of grains by an Ultramax vessel from Argentina to Egypt with late May laycans is negotiated at $21/t vs. $24/t.
The Handysize market remains under pressure. Since Upriver draft is low, many Handysize ships fail to load cargoes. It is necessary to make most of every cargo in current market conditions, while smaller ships cannot lift standard voyage stems. Thus, 35-36k dwt vessels can lift 28,000 t of a cargo, which is very close to min stems of 30,000 t, but in case of larger stems (33-35,000 t), only 37-38k dwt carriers or Supramax ships can make sense. This results in oversupply of Handy tonnage that does not meet current demands, which is certainly not helpful. As of now, there are grain and pig iron offers for shipments from ECSA to Med, WAfr, PG, SE Asia, China and WCSA with May laycans. A large Handysize vessel has been fixed at mere $5.5k daily bss dely ECSA redel Med with 1H May laycans. ECSA coastal shipments may cost low-mid $3s k daily. Deals bss dely ECSA redel USG are discussed at $3-4k daily. A 35k dwt carrier has been fixed at $8.5k daily bss dely ECSA redel SEAsia. The deal for shipment of 25-30,000 t of grain from Argentina to Egypt with 1H May laycans is negotiated at low $20s/t. Transportation of 30,000 t of grain from Brazil to Egypt with early May laycans may cost $16-17/t. The contract for transportation of 25-30,000 t of grain from Argentina to Yemen with 2H May laycans is negotiated at $26/t vs. $29/t.
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