Picture of Far East market getting dull for Supramax/Ultramax owners

08.07.2022 15:40
Tonnage: Handysize,  Supramax
Region: Far East,  NOPAC
Cargo category:  Coal,  Fertilizers,  Grain,  Steel

After some positive shifts and stable rate seen last week, Supramax/Ultramax owners have started to lose ground on the Far Eastern market. As before, players report some fresh steel cargoes offered for shipments from local ports, but these volumes are insufficient to support owners given excessive tonnage list in the region. Reportedly, the waiting time on CJK anchorage for vessels calling Yangtze River ports has decreased to mere 1-3 days, resulting in larger number of carriers opening in the region; as a result, owners face problems standing their ground. Thus, corresponding TCT rates have sagged by around $1k daily from last done levels:

A 63k dwt ship has been fixed at $30k daily bss dely S.Korea redel USG;

Brokers suggest mere $31k daily for Supramax steel cargo transportation bss dely Far East redel Continent-Med;

Reportedly, the contract for a 57k dwt vessel bss dely CJK redel SE Asia is discussed at $24.5k daily;

A 56k dwt carrier has been fixed at $25k daily for steel transportation bss APS Japan redel SAfr;

A 53k dwt ship has been chartered at $29k daily bss dely N.China redel West Africa;

A vessel of 52k dwt has been fixed at $30.5k daily bss dely Japan redel NCSA-WCSA range;

As for CIS RVs, late last week, the contract for a Supramax carrier bss CIS RV dely N.China/CJK range was discussed at mid-high $20s k daily;

On the voyage basis, transportation of 55,000 t of coal from Vanino to Shanghai is quoted by ISM at $21/t with 12,000c/12,000c l/d rates;

Shipment of 45,000 t of urea from N.China to Tuticorin with 5,000c/10,000x l/d rates is estimated by ISM at $40/t.

The NOPAC sector also stays unattractive for Supramax/Ultramax owners, with limited cargo traffic from PNW ports:

Brokers suggest $24k daily for Supramax NOPAC RVs bss dely CJK;

Carrying 50,000 t of grains from Vancouver to Taiwan with 10,000x/6,000x l/d rates is quoted by ISM at $59/t.

The sentiment remains negative also in the Handysize sector, with a further sharpening of cargo/tonnage imbalance:

TCT rates for a 28k dwt vessel bss DOP CJK redel SE Asia are voiced by brokers at $20k daily (around $2k daily down from last week);

As for back-haul routes, brokers suggest slightly more than $30k daily for a 30k dwt carrier bss dely Far East redel Continent-Med;

With regard to the Handymax segment, charterers pay mere $17k daily for Handymax fleet bss dely CJK via China redel SE Asia;

On the voyage basis, carrying 30,000 t of bulk DAP from Zhenjiang to Karachi with 10,000c/4,500x l/d rates is quoted by ISM at $55/t;

Transportation of 30,000 t of coal from Vanino to Shanghai with 10,000c/10,000c l/d rates is estimated by ISM at $26-26.5/t.