The ECSA Supramax/Ultramax market shows a noticeable increase in the number of new cargo offers this week. The general market sentiment has improved and owners are voicing higher freight ideas, but it hasn’t affected fixing levels yet. Note that since rates are low and stay under pressure, it is difficult to estimate future shifts; it is almost impossible to assess forward freight levels, which restrains forward commodity trading. As of now, there are F/H offers for ECSA grain shipments to China and RSea with 1H-mid May laycans, as well as steel requests for transportation from N.Brazil to USWC with mid-May laycans; also, there are some requests for mineral shipments from WAfr to China with 1H-mid May laycans. Note that Upriver draft keeps falling and vessels with increased lift capacity can get a premium compared to close competitors.
TCT rates for Supramax fleet bss dely ECSA redel Spore-Japan are voiced at $9-10k daily + $90-100k bb. Charterers are voicing bids of $11k daily + $100k bb for well-described Ultramax carriers bss dely ECSA redel SEAsia, while owners are trying to get $12k daily + $200k bb. Note that this week a 56k dwt ship has been fixed at a low level of $10k daily with no bb bss dely ECSA redel SEAsia, which put some pressure on slightly improved sentiment. Nevertheless, average Ultramax TCT rates bss dely ECSA redel Spore-Japan are voiced by brokers at $11.5k daily + $150k bb; note that brokers expect these levels to improve and forecast $12k daily + $200k bb next week. Supramax owners expect to get at least $11k daily + $110k bb on F/H routes next week. Deals for Supramax/Ultramax fleet bss dely ECSA redel WCSA are discussed at $9-11k daily. The contract for shipment of 60,000 t of grains by an Ultramax carrier from Brazil to SE Asia with late May dates is discussed at $23-25/t.
The transatlantic segment also looks more active cargo-wise. There are grain offers for shipments from ECSA to Med with 1H-mid May laycans. Nevertheless, rates stay under pressure. Supramax transatlantic TCT rates are hovering within $5.5-6.5k daily. A Supramax vessel has been chartered at $5.75k daily bss dely ECSA redel Continent. A small Supramax carrier has been fixed at $5k daily bss dely ECSA redel BlSea. The deal for an Ultramax ship bss dely ECSA redel Skaw-Passero is negotiated at $7k daily. The contract for an Ultramax vessel bss dely ECSA redel WMed is discussed at $7.25k daily. The deal for transportation of a Supramax-lot of grains from Brazil to Egypt with 1H May laycans is discussed at $13/t vs. $15/t. The contract for Supamax shipment of 40,000 t of grains from Argentina to Egypt with mid-May laycans is negotiated at $18/t vs. $21/t.
The Handysize market remains under pressure and rates are falling despite quite healthy cargo flow. There are grain, sugar, rice, steels, iron ore and alumina offers for transportation from Brazil and Argentina to Continent/Med, WAfr, the USA, WCSA and PG with 1H-mid May laycans.
Since Upriver draft remains low, many Handysize vessels fail to load cargoes and mainly 37-38k dwt carriers or Handymax and Supramax ships meet the requirements. T/A TCT rates for large Handysize fleet are hovering at $5-6k daily, while charterers try to lower levels to $4k daily. The deal for a 32k dwt carrier bss dely ECSA redel Skaw-Passero is negotiated at $5k daily. Contracts for large Handies bss dely ECSA redel WCSA are discussed at $8-9k daily. A 39k dwt ship has been fixed at $11k daily bss dely ECSA redel China with 1H May laycans. The deal for shipment of 30,000 t of grain from Brazil to the Baltic region with 1H May laycans is negotiated at $18-20/t. Transportation of 30,000 t of grain from Brazil to Egypt with early May laycans may cost $15-16/t. The contract for shipment of 30,000 t of grain from Brazil to France with June laycans is negotiated at $11/t vs. $14/t.