BDI INDEX

The dry bulk market kept moving on a positive track for another week however with the largest sizes losing some gains as the week was coming to an end. The Capesize sector has taken the leading position in terms of earnings closing the week at $15,867/day yet below its YTD high of $17,500/day which was reached early last week. A similar story for the Panamax owners with the week kicking off with gains across all routes but as the week progressed the positive momentum started to fade amidst a combination of limited fresh cargoes and increasing ballasters. Despite this uninspiring end, fundamentals for both sizes remain in a good shape assuming that activity took a short break before resuming a positive track as the Q2 launch. Geared sizes performance was positive throughout the range of the week with the Handysize sector enjoying the largest improvement of 10% w-o-w

The BDI closed today (24/3/2023) at 1489 points down by 46 points. BCI closed on Friday at 1882 points down by 31 points decreasing with 1.6% w-o-w. BPI closed at 1572 points down by 151 points decreasing with 8.8% w-o-w . BSI increased 14 points and closed at 1332 points with increasing 1.1% w-o-w. BHSI increase by 9 points and closed at 703 points with increasing 1.3%.

 SECOND HAND MARKET

In the dry bulk sector, the volume of sales picked-up compared to the week prior. This comes as no surprise, with dry bulk rates finally getting out of the slump, sparking appetite amongst buyers again. Capesizes were the main star of last week’s transactions supported by en-bloc sales, followed by Supramaxes. The vintage of vessels changing hands, slightly increased to 13 years.

Typical Transaction

DEMOLITION MARKET

The market is in a situation where buyers in all four markets are keen to acquire more vessels for scrapping, but the improved freight rates are making this difficult with few deals being concluded for smaller tonnage. As a result, recycling prices are rising. In India, prices are still below those in Bangladesh yet with breakers offers rising w-o-w while the country’s 3 HKC accredited yards provide further competition for greener recycling. In Bangladesh, the demand for recyclers is still strong as buyers are eager to do some business, but the L/C restrictions are still in place for some buyers. In Pakistan, talks are still ongoing between the country and the IMF for the long-awaited $6.50 billion loan. This time, the IMF wants all other countries that have pledged to help Pakistan to do so before the fund approves the loan. The government is expected to classify the steel industry as an essential commodity, which will allow market players to issue new letters of credit. For now, the country remains outside the market. In Turkey, steel prices are stable but there were no new sales last week. In terms of fundamentals, the government reported a deficit of 170.56 bl lira ($8.99bl) in its February budget and the lira traded above 19 against the USD, an all-time high for the currency. Average prices in the different markets this week for tankers ranged between 340-615/ldt and those for dry bulk units between $330-600/ldt.

Typical Transaction

NEW BUILDING MARKET

The newbuilding market had yet another strong week with a total of 22 vessels being ordered. Interest for tanker and dry bulk units remains vivid representing the majority of orders once again, with an evidently lower appetite for container and LNG units following two years of booming contracting activity for the respective sectors. On the dry bulk front, Kamsarmax along with the Ultramax sectors is having the lion’s share of 2023 orderbook with the latter having seen its newbuilding price rise by around $1.0m from the beginning of the year to $32.0m for Chinese-built yard. On the tanker front, MR2 and LR2 orders are having the largest market share of the newbuilding tanker activity while a notable interest in Suezmax vessels is being observed with Greek owners almost monopolizing the respective trend. Moving to the nonconventional sectors, ONE secured a mammoth order of ten 13,700teu boxships at a price of $160.0m each with the methanol option as an alternative fuel becoming continuing to engross share from the LNG.

NB Price Index                                                               Unit M USD

Typical Order

CHARTERING MARKET

SUPRAMAX: The Atlantic outperforming the Pacific, especially more action from USG and East Mediterranean. Fronthaul from the USG to the Far East trading around USD 20,000. Trip from Mediterranean to Far East similar levels about USD 19,000. 22/3/23, 8:29 μ.μ. Fearnleys Weekly Report - Week 11 - March 15, 2023 https://fearnpulse.com/print 3/7 TA now around USD 13,000. Wafr to North China now around USD 18,000 levels. Less activity from the East though, where coal round via Indo to India done now at USD 15,000.

PANAMAX: The Panamax market appeared a little listless and languid this week. Minimal fresh demand seen again today in the Atlantic with little exchanged, sources said, but tonnage count seemed well balanced. Asia somewhat impacted by holidays in Japan lacked any cohesion with a stand-off between owners and charterers ensuing, but despite not a lot of activity of note many felt owners who wished to cover would have to likely to concede lower numbers in order to get fixed. Limited period activity this week.

CAPESIZE: Sentiment has changed a bit over the last week as cargo count in the north and south Atlantic has calmed down a fair bit. Hence, we are down 17% week on week. The next week looks a bit sluggish looking at the cargo list, however that could change quickly and the list of ships on its way to Brazil is not very significant, so sentiment can change over night.