Demand/supply ratio balanced, but rates mostly on charterers’ side on USG Handysize market

The USG Handy tonnage list does not appear to be too long and there are a few fresh requests around. Nevertheless, the demand/supply balance is still favorable for charterers. Ship owners prefer to stay in the USG area and perform Inter-Caribs/Inter-Gulf trips:

• TCT rates for large Handies bss dely USG redel Skaw-Passero are hovering at $12.5-13.5k daily, while levels for small Handies are voiced at very low $10s k daily;
• A 39k dwt ship has been chartered at $14k daily bss dely USG redel Med;
• A 32k dwt vessel has been fixed at $9k daily bss dely USG redel ECCA;
• The deal for a large Handy carrier bss dely USG redel WCSA has been signed at $14k daily;
• Brokers suggest low $30s/t for transportation of 30,000 t of grains from USG to Egypt with 7000x/6000x l/d rates and spot laycans;
• Brokers suggest low-mid $20s/t for shipment of 30,000 t of petcoke from Houston to Rotterdam with 10000c/10000c l/d rates and spot laycans.

The year start has been rather slow for the USG Supramax/Ultramax market. The overall sentiment is quite pessimistic and rates are falling due to limited number of fresh cargoes and long list of available tonnage:

• Supramax/Ultramax F/H TCT rates are hovering at $18-20k daily;
• A 56k dwt ship has been fixed at $16k daily bss dely USG redel China;
• A 63k dwt carrier has been chartered at $20.5k daily bss dely USG redel India;
• The deal for a 61k dwt vessel bss dely USG redel WCSA has been signed at $20.5k daily;
• Transportation of 50,000 t of petcoke from USG to India with spot laycans is discussed at $39-41/t, which gives the TCE of $16-17k daily for a large Supramax carrier bss APS USG;
• The contract for shipment of 55-60,000 t grains from USG to China with late January laycans is negotiated at mid-high $40s/t;
• Deals for Supramax fleet bss dely USG redel Skaw-Passero are discussed at $18-19k daily;
• A 63k dwt ship has been chartered at $20k daily bss dely USG redel Continent;
• A 55k dwt vessel has been chartered at $15.5k daily bss dely USG redel Continent;
• The contract for a 61k dwt vessel bss Inter-Caribs has been signed at $19k daily;
• Transportation of 50,000 t of petcoke from Houston to Iskenderun with spot laycans is negotiated at $23-25/t, which gives the TCE of $15-17k daily for a standard Supramax vessel bss APS USG;
• Brokers suggest mid-$20s/t for shipment of 55-60,000 t of grains from USG to Egypt with 10000x/7000x l/d rates and late January laycans.