A key market indicator for spot market earnings of handysize bulkers ended the week at its lowest level since May, as slow activity pulled down rates.
But a spurt of fixture volume in the US Gulf Coast market, including a fixture by dry bulk operator Pacific Carriers, provided some hope in the Atlantic.
The Baltic Exchange’s index of spot rates across seven key routes in the handysize sector fell to about $12,700 on Friday, which represented a one-week dip of 2.4%.
That is the lowest level since 24 May, when handysize spot rates were in the midst of a climb that peaked at just over $13,700 per day in June.
The Baltic Exchange said in a weekly report that the market saw minimal activity across the Pacific and Atlantic basins.
“In the Continent and Mediterranean, the market fundamentals remained unchanged with sentiment appearing positional,” the exchange’s analysts said.
They wrote that limited cargo availability is contributing to the negative outlook in continental Europe and the Mediterranean.
Shipbroker Braemar had a more positive take on the outlook for the market.
“While both the Mediterranean and Continent markets have maintained a negative sentiment, next week looks more promising as tonnage surplus has reduced, and a wave of fresh enquiries is expected,” the UK outfit said in a Thursday note.
Sentiment was more positive in the US Gulf Coast, where new enquiries were putting open tonnage to work.
Among the fixtures in the US Gulf Coast was Pacific Carriers’ $16,000-per-day deal on Thursday for the 39,100-dwt Armia Krajowa (built 2016).
The vessel, owned by Poland’s Polsteam, will carry wood pellets from Panama City, Florida, to the UK or continental Europe, according to Baltic Exchange data.
“Towards the weekend, the US Gulf showed some signs of improvement with some fixing activity recorded across various vessel sizes, and prompt tonnages began to clear slightly,” the Baltic Exchange analysts wrote.
Braemar noted that the US Gulf Coast market was “stirred up” by Hurricane Francine, which made landfall in Louisiana on Thursday as a Category 2 storm, leading to some delays and cancellations.
Also in the Atlantic, Danish owner-operator Falcon Maritime threw down nearly $14,700 per day to take the 32,600-dwt Ethra Gold (built 2010) from Port Esquivel, Jamaica, to Iceland.
“However, the South Atlantic market remained soft with only a few positional fixtures and limited positive indicators,” the Baltic Exchange said.
Braemar said there was an extended tonnage list in the market on Thursday, contributing to a continued slump.
“There is a lack of fresh enquiries in the region, particularly in the south, putting pressure on owners,” the broker said.
In the Pacific, Baltic Exchange analysts said on Friday that a sense of “underlying support” prevailed, keeping rates stable.
