Panamax rates for dry bulk cargoes were steady on Tuesday, supported by South American grain shipments, but brokers were watching port congestion for any signs of a delay in freight fixtures.
Modern Panamax rates for the benchmark US Gulf to Japan route were indicated at around $75 to $80 a tonne for May and June shipments, largely unchanged from last week but still at high levels, brokers said. But rates appeared to lack momentum to rise above $80 a tonne, they said.
"It is over $70 and that is still a pretty ridiculously high level," a Japanese broker said.
"The markets have held steady but are seeking to pick up momentum on strong fundamentals ahead of the South American crop season," a Seoul broker said.
Brokers said they were watching news of recent disruptions at loading ports in Australia and a port strike in Brazil.
"The impact of this incident is a little difficult to gauge, although chances are it will be a factor to boost the market," the broker in Japan said, adding it could briefly cool the market, if a force majeure was declared.
"In either case, these disruptions will only have a temporary impact on the market, which will fundamentally remain firm as these are cargoes that are needed."
Earlier this month, because of severe flooding of rail lines feeding the ports, broker J.E. Hyde reported force majeure at the Hammersley and Robe River mines in Western Australia, in addition to continuing lengthy delays in the Newcastle port. Brazil's soy and corn port of Paranagua was paralysed on Monday by a strike by operators and workers.
Nearly 50 vessels were waiting to enter port, including 28 for the export corridor terminal, and the average waiting time was estimated at 25 days.
In the period market, time-charter rates for the US Gulf to the far east were between $50,000 and $55,000 a day plus $850,000 to $900,000 ballast bonus (BB), regional brokers said. That compared with $51,000 to $53,000 a day plus $800,000 to $850,000 BB a week earlier.
The Pacific market was estimated at around $40,000 a day, slipping from last week's quotes at between $40,000 and $45,000 a day, brokers said.