Capesize volumes rose mid-week with varied date inquiries. Panamax declined due to low demand and high tonnage. Supramax remained active, especially in the Atlantic, with steady coal and grain shipments, reports fearnpulse.
Capesize
On the West Australia front, volumes started off flat at start of the week and increased gradually as we approached mid-week with miners, some operators, and tenders for second half of August dates. Volumes out of East Australia held up and players were mainly seeking for late August to early September dates. On C3 ex Brazil to China, enquiries were heavily weighted on very late August and first half of September dates. A sizable number of operators were seeking for second half of September dates. On West Africa, enquiries were primarily for first half of September dates. Far East spot tonnage is slightly tighter while ballasting tonnage weighs heavily on first half of September dates with some still able to meet late August dates. We see fixtures concluding at mid-high 9 pmt levels/mid 17 pmt levels/high 23-low 24 pmt levels on C5/C17/C3, respectively.
Panamax
This week, for the Panamax segment, the market has continued to decline, deviating from seasonal patterns seen in previous years. The US Gulf grain and Brazilian corn shipment seasons are positive factors, though coal markets remain quiet. Normalizing Panama Canal water levels are not seen as bearish but limit potential gains. Earnings are expected to be higher than last year, with a possible rally in September driven by US grains. However, the market is marked by low demand and increased tonnage, with charterers holding the upper hand and reducing bids, leading to weaker sentiment in both the Atlantic and Asian markets.
Supramax
Healthy activity in the Atlantic basin with a few fresh sugar stems on geared sizes. MEG/Indian Ocean region also remains active with usual South Africa-India coal, and some backhaul cargoes as well. ECSA-Mediterranean trip was fixed at around USD 19,000 levels on a Supra. ECSA-Algeria trip reportedly fixed at USD 15,000 levels on a Handy. South Africa-China trips being done at USD 21,000 levels. The usual Indonesia-China coal runs stand at around USD 12,000 levels basis Supra. Indonesia-India trips going for USD 10,000 levels as usual. There is still appetite for period, and last done was in high USD 17,000 levels for SP on an 63k Ultra opening in WC India. As pointed out by our research team, several macro indicators suggest that the positive momentum will continue until the end of the year. This does at least suggest market levels will not go much lower than where it is currently. The USG grain season could act as a trigger and push the markets to firm up.
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Source: Fearnpulse
