Supramax/Ultramax TCT rates keep sliding down in Indian Ocean

07.07.2022 18:04
Tonnage: Handysize,  Supramax

The Supramax/Ultramax market stays lackluster in the Indian Ocean. The cargo traffic ex India is extremely limited; owners keep repositioning tonnage to SE Asia and SAfr markets, putting additional pressure on rates in those regions. There are some sporadic fresh requests ex the Persian Gulf, but given excessive tonnage supply in the region, particularly off the WCI coast, owners have no chance to stabilize rates. Thus, charterers have managed to lower freight levels by another $0.5-1k daily on almost all routes in the region.

As for the PG and Indian markets:

Reportedly, a 63k dwt scrubber-fitted ship has been fixed on subs at $27k daily bss APS UAE redel Bangladesh;

A 57k dwt vessel has been chartered at $24k daily bss dely UAE redel Bangladesh;

Another Supramax carrier has been fixed at $24k daily bss DOP UAE redel Paradip;

Supramax TCT rates bss DOP ECI redel China are voiced by brokers at mid-high $10s k daily.

In South Africa:

Brokers suggest $25.5k daily + $550k bb for Ultramax fleet bss APS SAfr redel Far East, while relevant rates for Supramax tonnage are voiced by brokers at $25k daily + 500k bb;

However, rumors say that owners of an Ultramax vessel have managed to get mere $25k daily + 500k bb bss APS Durban redel China;

Ultramax TCT deals bss APS SAfr redel WCI/Pakistan are negotiated at $24.5k daily + 450k bb;

Meanwhile, TCT rates bss APS SAfr redel Continent-Med are voiced by brokers at higher levels as owners insist on premiums given quite dull market in that region. Thus, Ultramax TCT rates bss APS SAfr redel Continent-Med are voiced by brokers at $38k daily, those bss redel Baltic at $40k daily.

On the voyage basis, the contract for shipment of 50,000 t of dolomite from Oman to WCI has been signed at $13/t with mid-July laycans (equivalent to around $24k daily bss DOP PG);

Transportation of 50,000 t of limestone from the UAE to ECI costs $21/t;

Carrying 50,000 t of iron ore from Vizag to Tianjin is estimated by ISM at $25.25/t with 8,000c/12,000c l/d rates;

Transportation of 50-55,000 t of coal from Richards Bay to WCI is quoted by ISM at $30.5/t with 30,000c/15,000c l/d rates.

The Handysize sector is following the same pattern this week, with limited cargo offer ex Indian ports:

A large Handysize ship open ECI has been fixed at $24k daily for an ECI coastal trip;

A 30k dwt vessel has been chartered at $26.75k daily bss dely Durban redel ECI;

On the voyage basis, the contract for transportation of 38,000 t of coal from Mozambique to ECI has been signed at $41-41.5/t with mid-July laycans (equivalent to about $35k daily bss dely SAfr).