Average spot rates for midsize bulkers have hit four-month highs as grain volumes out of South America and the US Gulf Coast remain high, an analyst said.
The Baltic Exchange’s Panamax 5TC of spot-rate averages across five key routes edged up 1.2% on Monday to nearly $13,600 per day to reach its highest rate since 5 May.
Norden Shipping fixed Densay Shipping’s 81,119-dwt panamax SSI Excellent (built 2016) at a much higher $22,500 per day to travel from Belgium’s Port of Ghent to the US Gulf to ship grain from the US Gulf Coast to the Far East after loading the ship from 16 to 25 September.
The Supramax 7TC also achieved a four-month high on Monday when it gained 1.9% on Monday to $12,100 per day to attain its highest level since 15 May by recording $12, 074 per day.
“Dry bulk rates have been better supported of late, mainly the sub-cape segments, due in part to higher grains volumes,” Jefferies analyst Omar Nokta said.
“Charterers have been active in the South America market over the past few weeks while the peak US Gulf export season is now underway.”
Nokta also noted that ultramax spot rates rose to $14,200 per day to reach their highest figure since mid-May, and are up above their lows of $9,000 per day in early August.
“Similarly, the kamsarmax segment is also at four-month highs, with the midsize segments overall seeing solid activity in the Atlantic Basin,” he said.
Campbell Shipping’s 58,810-dwt CS Sonoma (built 2010), which became open in the eastern Mediterranean Sea, was rumoured to have fixed a fronthaul but no further details came to light, Baltic Exchange analysts wrote on Monday.
The handysize market reached its highest mark in 3.5 months on Monday as the Handysize 7TC ticked up 0.6% to nearly $10,400 per day. That is the highest it has been since 31 May.
By contrast, the capesize sector has weakened over the past four months, in great part due to negative sentiment around China’s struggling real-estate sector and weak economy.
The Capesize 5TC gained 1.9% on Monday to approach $11,000 per day, but it has fallen 51% since 10 May when it hit a high of $21,800 per day.
