LUGANO, SWITZERLAND, September 22, 2023 – TELF AG has published a sitrep on the Dry Bulk Market titled, “Steady Growth in Dry Bulk Market Across All Sectors Raises Questions on Longevity,” dated September 21, 2023. The timely analysis offers a comprehensive look into the various sectors of the Dry Bulk market, covering data, trends, and projections.
According to the overview, the Cape sector has witnessed a significant uptick with a 46% week-on-week increase in the average 5TC, rising from USD 11743 to USD 17145. The report also emphasizes healthy volumes across the board, noting that losses incurred by Vale a few weeks ago have been compensated for. FFA has also been moving in sync with this positive sentiment.
As per TELF AG, Charterers are adopting a cautious stance due to the sharp rise in rates. The bid/offer spread has been widening, particularly toward the end of the week. The market is fundamentally sound, with expectations for the fourth quarter to remain robust, although it is predicted that October could be the peak before transitioning to a historically weaker first quarter.
The Panamax sector continues its growth trajectory, with its index rising from USD 14610 to USD 15361. Grain remains a primary driver, especially from East Coast South America and now the U.S. Gulf. In the Atlantic, where activity was comparatively low a few weeks ago, cargo volumes have increased, and rates have been firming. TELF AG reports that coal demand needs to pick up further to maintain these rates through the end of the year.
The analysis extends to activity in the Atlantic Ocean for Handysize and Supramax segments. The report observed that charterers able to delay their laycans are withdrawing from the market, increasing the offer/bid differentials.
In regional analysis, TELF AG said the Baltic/Continent market maintains balance with a good mix of grain, fertilizer, scrap, and coal cargoes. Rates for cargoes to Asia are close to USD 34,000 per day, while trips to the Mediterranean Sea vary between USD 22,000-26,000 per day.
The Black Sea area has fair vessel availability but stagnant demand. Rates for transatlantic trips are around USD 22-23,000 per day for supramax, and fronthauls are being fixed at about USD 33,000 per day. The US Gulf market is experiencing a softer opening, while East Coast South America remains strong.
For those interested in the dry bulk market, this article serves as an essential read for understanding the complexities and trends impacting various sectors. TELF AG continues its commitment to providing accurate and actionable insights to all market participants.