With activity dropping further early on in the week, all dry bulker segments took a considerable tumble. Panamaxes faced once again a very strong decrease in freight levels, as there was still no support coming from the Atlantic basin, while at the same time the Pacific basin continues to show limited activity. All this has left both basins largely oversupplied with open tonnage and things are looking unlikely to head to any considerably improving direction over the next couple of days. At the same time Capes are still facing difficulties due to the limited iron ore activity seen over the past couple of weeks. This is not expected to change drastically as stock piles in China remain at relatively high levels while the softening steel prices dictate a slower demand. Supras and Handies had a complete reversal of market conditions this week, with rates dropping as conditions in the Atlantic started to slowly deteriorate. Limited concluded fixtures in the USGulf and ECSA created a shortage in demand there, while the Pacific basin has yet to show signs of recovery.
On the demand side, expectations are for demand to continue to remain soft for iron ore and coal activity. Things are looking slightly more positive on the grain market, however with prices dropping over the past week it looks as though things will be a bit slower over the coming days.
Source : Capital Link Shipping Weekly report