The Capesize market in West Australia is showing signs of activity, with miners, operators, and tenderers primarily focusing on early February dates. While volumes from East Australia and other Pacific regions remain relatively stable, there’s been an increase in inquiries for C3 voyages from Brazil to China, particularly for late January and throughout February, reports Fearnleys.
Capesize
The Capesize market in West Africa has seen a decline in inquiries this week. While Far East spot tonnage remains plentiful, there’s a shortage of ballasters for late January, with most available in the first half of February.
Rates on the C5 route (West Australia to China) have remained stable, while the C3 route (Brazil to China) exhibits backwardation, with rates higher for earlier dates and decreasing later in February.
Panamax
The Panamax market experienced another week of weakness, with rates declining in both the Atlantic and Pacific.
- Atlantic Weakness: Limited South American activity and thin visibility in the North Atlantic led to lower rates and pressure on vessel positions.
- Pacific Pressure: While some support came from NoPac grain trades, shorter routes remained under pressure, with owners offering significant discounts.
- Overall Weakness: Oversupply and subdued demand continued to weigh heavily on the market.
With limited signs of immediate recovery, the market is expected to remain subdued until after the Chinese New Year. However, increased coal trades and the upcoming South American soybean export season are anticipated to boost activity in the coming months.
Supramax
The Supra/Ultra and Handysize segments witnessed a challenging week with a prevailing bearish sentiment across both the Atlantic and Asian markets.
- Limited Activity: Both segments experienced subdued trading with limited fresh enquiries and abundant available tonnage.
- Rate Pressure: This oversupply led to significant downward pressure on rates.
- Supra/Ultra: While the US Gulf may have found a floor for transatlantic runs, rates remained under pressure in other regions like the Continent-Mediterranean and Asia. Charterers held a strong negotiating position due to weak demand. The 11TC average dropped steadily over the three days, ending at USD 10,092.
- Handysize: Oversupply and weak demand also impacted the Handysize segment. Limited activity in the Atlantic and Asia, coupled with low cargo availability, further pushed rates down as owners adjusted their expectations.
- Period Market: Activity in the period market remained sluggish with very few new enquiries.
Overall, the week was characterized by weak market conditions and a downward trend in rates for both Supra/Ultra and Handysize segments.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Fearnleys
