Dry bulk markets have continued to slide last week but on Friday the general feeling was that next week will see a comeback of charterers particularly in the East, which should reverse the trend in the short term. Some freight rates already showed signs of stabilisation by the end of the week. The situation is less clear in the Atlantic and it could take some more time to recover.
After a positive start to the year the Panamax market took a different shape last week with rates in all areas dropping fairly significantly but with special emphasis on the Pacific routes. There are mixed feelings as to whether this trend will continue or whether this is just a minor correction but the fact that the period market has sustained fairly healthy levels suggests that the market is expected to revive itself.
Apart from the East Med/Black Sea area, Handy and Handymax markets have seen their rates fall down significantly with a drop of over US$1000 for the BHMI (US$27,586 last Friday). Both Atlantic and Pacific Basins have been hit and in view of the weakening markets many orders for Handymax size vessels have been delayed especially in South East Asia/Far East.
A few large units open spot in Far East have started ballasting towards Singapore looking for better opportunities. Modern built 25,000/28,000 dwt units are getting in the very high teens to very low twenties for short period. On the Atlantic front, 40,000 dwt units are getting in the mid to high twenties for TCT trips dely West Africa via ECSA and back to Continent. The USG market has been very slow with the US Gulf/Skaw-Passero route taking a hit of over US$2,500 over the week.
Source: Barry Rogliano, Shipbrokers, Paris