Capesize, Panamax, and Handysize segments faced significant rate drops due to oversupply, muted demand, and weather disruptions, while minimal optimism emerged from Indian Ocean activity and steady Pacific rates, reports Baltic Exchange.
Capesize
The Capesize market experienced a turbulent week, marked by a mix of sporadic positivity and mounting downward pressure. The BCI 5TC started the week at $21,673, gained ground midweek, peaking at $23,049 on Tuesday, but plunged to $17,686 by Friday, losing $3,987 over the week. In the Pacific, initial optimism driven by miner activity was dampened by persistent weather disruptions and an expanding tonnage list. Rates on C5 trended down from a peak of $10.585 on Tuesday to $8.85 levels by weeks end, as dwindling cargo volumes exacerbated market softness. The Atlantic faced consistent challenges, with muted activity on South Brazil and West Africa to China and growing ballaster list weighed heavily on rates. The C3 index saw steady declines, dropping from $23.090 on Monday to end the week at $20.050.
Panamax
The decline in the Panamax market showed no signs of abating this week with further substantial corrections in both basins. In the Atlantic, a distinct lack of front haul demand as well as a steady build-up of tonnage count ultimately weighed heavy on the deals reported this week. An 81,000-dwt agreeing to $13,500 early part of the week for a trip via US east coast redelivery India, but rates for this run were heavily discounted and some APS load port deals were rumoured by end week. Rumours emerged mid-week ex EC South America, an 82,000-dwt delivery APS Santos agreeing $13,300 + $330,000 ballast bonus for a trip to SE Asia. Asia remained downcast too as Indonesian coal exports continue to be an issue. And, despite some minor support ex Australia, this did little to dent into an ever-growing tonnage count with limited options. Period activity remained sparse, however did include reports of an 82,000-dwt delivery Korea fixing 4/8 months at $11,650.
Ultramax/Supramax
Another rather unsettled week for the sector. The Atlantic lacked fresh impetus in most areas, not helped by the holiday in the United States. Demand from the US Gulf was rather positional, owners slightly reluctant to do business which would see vessels again open in the festive period. A 63,000-dwt fixing trip from the US Gulf to the Mediterranean at $19,000, but similar size fronthaul business vessels were fixing around $20,000. The East Mediterranean added further downward pressure as very little in the way of fresh enquiry entered into play. A 63,000-dwt was heard fixed from Turkey to the US Gulf at $6,000. Whilst the start of the week saw signs of a slightly firmer feel in the Asian arena, it closed down again due to little fresh enquiry and a good supply of prompt tonnage. A 57,000-dwt fixing delivery Singapore for a trip via Indonesia redelivery North China at $9,000. Further north, a 63,000-dwt open North China fixed a NoPac round at $11,500. The only slight bright spark was seen from the Indian Ocean, slightly better demand being seen from South Africa, saw a 63,000-dwt fixing delivery Maputo for a trip China at $18,000 plus $180,000 ballast bonus.
Handysize
It’s been a challenging week for the sector, with rates in both the Atlantic and Pacific regions continuing to face downward pressure. Across the Continent and Mediterranean, the market showed a lack of fresh impetus with overall sentiment remaining positional. Rates continued to hover around the last done. A 32,000-dwt was fixed for delivery Canakkale trip via Turkey and G.O.A. redelivery Bangladesh at $9,500. In the South Atlantic, market fundamentals remained relatively unchanged, with trans-Atlantic cargoes continuing to be the main driver for the region. A 37,000-dwt open in Salvador 25/27 November was fixed for delivery Recalada for a trip to West Coast South America at $21,000. However, the US Gulf market was very quiet, primarily due to the Thanksgiving holiday festivities, with little fixing activity reported. Charterers have been bidding lower than previously agreed levels. A 38,000-dwt fixed delivery SW Pass redelivery West Coast with grains at $14,750. In the Pacific, challenges persist with rising free tonnages and limited cargo availability. However, some sources suggest that the market may have reached its bottom, with no further significant rate drops expected. A 28,000-dwt vessel was fixed for delivery Vancouver redelivery Japan with petcoke at $13,000.
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Source: balticexchange
