In the Western Australia shipping market, there is notable activity with both vessel operators and mining companies seeking tonnage for loading dates in late April 2025. Additionally, some operators are expressing preliminary interest and making inquiries for vessel availability in May 2025. Across other regions of the Pacific, the overall volume of cargo being offered for shipment is reported to be at a reasonably healthy level, reports Fearnleys.
Capesize
On the LPG front, specifically for C3 cargoes loading ex Brazil and West Africa, inquiries are circulating for May loading dates. In the Pacific region, the availability of spot tonnage is currently high, while the number of vessels ballasting (sailing empty to position) for the first half of May is also substantial. The rate for C5 cargoes has concluded at low USD 7 per metric ton (pmt) levels, while C3 cargoes are now being quoted in the high USD 18 pmt to low USD 19 pmt range.
Panamax
The Panamax market experienced sustained downward pressure this week, with both the Atlantic and Pacific basins registering significant rate declines. This was primarily driven by a continuing oversupply of vessels and a lack of robust cargo activity.
In the Atlantic, despite initial signs of increased vessel movements towards the East Coast South America (ECSA) region due to appealing soybean prices, this uptick has not been sufficient to counteract the overall market weakness. Charterers have maintained a strong negotiating position, leading to a sharp decrease in Atlantic rates.
Similarly, in the Pacific, the market continues to struggle. Limited fresh inquiries from regions like the North Pacific (NoPac) and Indonesia, combined with a consistently growing list of available vessels, are undermining rates and widening the gap between bids from charterers and offers from owners. This leaves owners with minimal leverage in negotiations.
Supramax
The clean tanker market across most regions displayed a muted tone this week, characterized by limited fresh inquiries and increasing caution among market participants.
- Atlantic: Rates in the Atlantic basin faced downward pressure due to an oversupply of available tonnage coupled with weak demand, particularly for backhaul voyages. The South Atlantic region showed some signs of stability, but owners remained cautious and were reluctant to concede further rate reductions.
- Pacific: Demand in the Pacific was generally weak, especially from Indonesia, which kept freight rates subdued.
- Mediterranean and Indian Ocean: Owners in the Mediterranean and Indian Ocean regions showed resistance to lowering rates further, but the overall market sentiment remained soft.
Reflecting this overall subdued market, the 11TC average (a key benchmark for clean tanker earnings) steadily declined throughout the week.
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Source: Fearnleys
