Capesize market declines amid oversupply, with some resistance in the Atlantic. Panamax sees slight improvement, while Ultramax, Supramax, and Handysize markets struggle with low demand and limited fresh cargo, reports Baltic Exchange.
Capesize
The Capesize market faced a challenging week, with the BCI 5TC steadily declining, shedding $3,909 across the week to close at $12,727, reflecting subdued sentiment and oversupply of tonnage in both basins. While the Pacific saw intermittent injections of fresh cargo, oversupply of tonnage persistently weighed on rates, with the C5 index dropping from $8.705 on Monday to end the week at $7.415. Limited fixtures from West Australia to China underscored the subdued activity, despite occasional support with coal cargoes from East Australia. The Atlantic market struggled similarly, particularly the South Brazil and West Africa to China markets, where muted demand and an oversupply of ballasters weighed on rates. The C3 index fell from $19.19 to end the week at $17.48. However, as the week draws to a close, brokers observed some resistance from Owners on C3, while the North Atlantic displayed signs of a potential recovery. Slightly firmer fixtures began to emerge, hinting at possible upside.
Panamax
Mid-week saw life injected into the market across most areas of the Atlantic. Decent levels of both grain and mineral demand added some impetus to a stagnant market and small gains were witnessed. A mini-rally emerged ex South America with improved offers being hit for end December arrival dates in which many felt would seep into January arrival rates but has yet to be fully tested, with $14,500+$450,000 delivery load port arguably the highlight this week on a decent spec 82,000-dwt for end December arrival. From Asia, little excitement as limited fresh enquiry from both Australia and NoPac came into play, but the market was said to have found something a floor as the week concluded. An 82,000-dwt delivery Korea was reported fixed at $11,000 for a NoPac round trip with grains. Period action was limited, although reports emerged of a new building 82,000-dwt delivery ex yard China fixing at $14,250 basis 10/15 months.
Ultramax/Supramax
Another rather protracted week for the sector as rates across most areas struggled to gain any positive momentum. In the Atlantic, both the north and south lacked much fresh impetus. Brokers said little demand was seen from the south however there was a plentiful supply on tonnage. From the US Gulf a rather uneventful week, a 56,000-dwt was fixed delivery Port Arthur for a short trip to Spain at $20,000. Demand from the Mediterranean waned, a 63,000-dwt fixing delivery Damietta redelivery EC South America at $6,000. From the Asian arena, it is a similar story as vessel availability was easily sufficient to keep up with demand. From the north, a 64,000 fixed delivery CJK for a NoPac round redelivery Philippines at $11,000. Further south, a 56,000-dwt fixed delivery Singapore via Indonesia redelivery SE Asia at $12,000. The Indian Ocean was described as positional, a 64,000-dwt fixed delivery Chittagong trip via EC India redelivery China at $10,000. With the festive season fast approaching it will be interesting to see what happens next.
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 aps Canakkale on a trip via Turkey to Goa, redelivering in Bangladesh at $9,500. In the South Atlantic, market fundamentals remained relatively unchanged, with transatlantic cargoes continuing to be the main driver for the region. A 37,000-dwt vessel, open in Salvador between 25/27 November, was fixed for delivery aps 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 to 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 dop Vancouver to redelivery Japan with petcoke at $13,000.
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Source: Balticexchange
