Dry Aulk Awakens from Slumber
After a quiet holiday period, the market has slowly awakened from its slumber, says the weekly report by Fearnleys A.S.
Rates are not running away but the market looks like it is finding a bottom. Averages for a Surpa are now around mid $4,000s and only marginally down from pre Christmas levels.
2016 has started with a couple of period fixtures reported at low $6,000s for Ultramaxes. Thus by default Supras will only be worth something in the $5,000s for a 12 month deal.
Activity in the Atlantic seems to increase a bit after X-mas and new year, especially grain from USG and ECSA to far east absorbing tonnage. Transatlantic roundvoyages paying arnd 4000 USD depending delivery, duration and redelivery.
Cold weather and more ice can make Baltic and North Atlantic tight, if iceclassed tonnage needed. Sofar rates steady. Rates moving up for fronthaul and 10.000 + 150 bb reported fixed from USG to feast. ECSA to feast paying mid 7 k + 220 k bb.
Grain from ECSA to continent paying mid 6k for a good Kamsarmax. Nopac rounds paying $4,000 + 100 k bb. Pacific rounds hovering around low/mid $3,000. Period market slow but we believe modern tonnage get arnd $5,500 for one year period.
As expected rates have been under pressure the first week of the new year. West Australia / China rates are up from sub 3 pmt levels during Christmas to approx $3,300 with a slightly further improvement expected. Fronthaul cargoes remain scarce. Some period activity with short period fixtures beeing concluded around the $4,500 a day for 175,000 dwts.