Capesize
The Capesize market gained notable momentum this week following a slow start largely due to Monday’s UK bank holiday. The Pacific basin was particularly active, supported by solid cargo flow from the miners and a tightening tonnage list, which pushed C5 rates up from $8.25 to $8.85 by week’s end. The Atlantic, especially the South Brazil to China market (C3), was the main driver of strength, with rates climbing steadily above $20.00 mid-week and reaching $22.00, amid firm cargo demand and a slightly shorter ballaster list. The North Atlantic showed late week improvement, particularly on the Fronthaul route, where an EC Canada fixture was reported in the high $30,000s. There was also growing confidence in the Transatlantic market, reflected by reports of firmer fixtures. Overall, the BCI 5TC gained significant ground, rising by $3,880 from Tuesday to Friday and closing the week at $18,885.
Panamax
It proved to be another negative week for the Panamax’s, with no sign of the recent softening trend abating, with little momentum from week beginning and disrupted somewhat by many holidays throughout the week. The Atlantic once again appeared predominantly fronthaul led with a steady cargo flow ex NC South America, reports of an 82,000-dwt delivery Gibraltar achieving $17,750 redelivery Singapore-Japan. There was little to report on trans-Atlantic routes, rates drifted as tonnage count remains steady rather than excessive. In Asia, the market lacked any kind of support. Even the coal exports ex Indonesia failed to materialise with many of the older/smaller ships heavily discounting to garner employment, as low as $3,000 for a 1999 built 73,000-dwt was reported for a trip via Indonesia redelivery China, whilst the longer rounds averaged around the $9,000 mark throughout the week. Limited period reporting but did include rumours of some index linked deals, the highlight an 82,000-dwt delivery China achieving 102% BPI basis 1 year trading.
Ultramax/Supramax
Rather challenging week for the sector with rates in both the Atlantic and Pacific regions facing continued downward pressure. The South Atlantic and US Gulf continued to struggle with a lack of fresh inquiries and an expanding tonnage list. A 57,000-dwt fixed delivery Santos redelivery China at $12,250 plus $225,000 GBB. Across Continent and Mediterranean with the overall sentiment being positional, the fixtures surfacing were indicating that rates were largely hovering around the last done. A 64,000 fixed delivery passing Gibraltar via Morocco via COGH to redelivery India with fertilisers at $13,250. Similarly, the Asian market saw limited activity, with slight declines noted in both NOPAC and Southeast Asia. A 61,000-dwt open Rizhao reported fixed a trip via North China to redelivery Southeast Asia at $11,000. In the period market, 63,000-dwt open Zhoushan fixed for one year at 1 year 100pct BSI63 index linked.
Handysize
Overall, it was a positive week, with rates rising across most loading areas. The Continent-Mediterranean region continued to see gradual improvement throughout the week, with sentiment remaining largely positional. For instance, a 40,000-dwt fixed for delivery London trip via Russian Baltic to redelivery EC Central America with fertilisers at $12,000. In the South Atlantic, the market held steady, supported by consistent demand and a balanced supply of tonnage. A 40,000-dwt fixed delivery EC South America for trip to redelivery Caribbean with grain at $18,000. In contrast, the U.S. Gulf experienced a notably active week, with rates showing significant improvement. A 39,000 placed on subjects for delivery US Gulf redelivery Italy with petcoke in the $16,000. Meanwhile, Asia remained generally flat, while some fresh demand emerged, it was insufficient to absorb the surplus tonnage in the region. A 39,000-dwt fixed delivery Chiba to redelivery Continent with steels at $12,500.
Source: Baltic Exchange
