The dramatic fall in dry bulk spot rates has been halted, with daily vessel earnings for standard capesize, panamax, supramax[ds_preview] and handysize types bunched together in a narrow range from around 2,700 to 2,900 per day– far below daily operating costs. Following the usual slowdown during the Chinese New Year holidays, the Baltic Dry Index finally began to edge up above 300 points from its all-time low of 290 points.
Over the last month, rate levels for supramax and handysize bulkers suffered further losses which kind of brought them back in line with capesize and panamax levels. Oslo-based broker Fearnley’s noted that the capesize segment still looked »very overtonnaged« despite activity creeping up again. Most of the business discussed for South America-Far East and for transatlantic trading has been for larger contracts of affreightment and not afor ad-hoc spot cargoes, it said.
Perhaps the most promising solution for spot capesize vessels these days are index-linked periods such as the eleven to 14 months charter for a 180,000 dwt newbuilding ex yard at a fluctuating daily rate equivalent to the Baltic’s 5 route time charter average
+ 19%, Fearnley’s said.
For panamaxes the only real highlight has been an increase in grain liftings ex East Coast South America, pushing up rates for fronthauls to the Far East to 6,500$ + 165,000 ballast bonus basis delivery ECSA (aps) and to about 4,500$ for ECSA-Far East rounds off India/Singapore spot positions.
Expectations among supramax owners and operators are increasing again as well amidst growing cargo stems post Chinese New Year, brokers say. Rates for Indonesia/India trips are seen pushing up towards 4,000$ per day while growing enquiry for coal liftings into India and grain shipments ex East Coast South America keep adding momentum to the market, reports say.
Generally the recent stabilization in rates has been too late and not strong enough to prevent a liquidity crunch for all those who are long on tonnage, be it owners or operators. The list of financial and/or corporate restructurings – often involving renegotiation of period rates for chartered-in tonnage – grows longer every day (Western Bulk, Hyundai Merchant Marine, Golden Ocean).
