Capesize Gains On C5, Panamax And Supramax Subdued Amid Limited Enquiry And Holiday Lull

Capesize: Market Holds Momentum Despite Ballast Pressure

Capesize activity showed resilience with steady demand from miners and operators for post-May 20th dates. East Australian exports continued to perform steadily, but enquiries out of Brazil and West Africa thinned for end-May, with players now turning focus toward June dates. Far East spot tonnage is tightening slightly, but overall ballast tonnage remains heavy into early June, potentially capping gains.

• Fixtures: C5 Australia/China concluded at high-$7/tonne levels. C3 Brazil/China bid-offer spread ranged from $18 to high-$19/tonne for June.

• Rates:

  • Australia/China: $7.8/tonne (▼ $0.1)

  • Pacific RV: $16,464/day (▲ $1,496)

  • TCE Cont/Far East: $38,125/day (▲ $312)

• Outlook: Positive sentiment in the Pacific, though overcapacity in the Atlantic remains a key challenge.

Panamax: Holidays Slow Momentum, Focus Turns to Atlantic

The Panamax sector started the week on a softer note due to global holidays and lackluster demand. North Atlantic remained the relative bright spot, backed by NCSA grain flows, while South Atlantic (ECSA) stayed quiet. In the Pacific, oversupply and weak NoPac demand pushed rates down.

• Rates:

  • Transatlantic RV: $12,218/day (▲ $190)

  • TCE Far East/Cont: $8,625/day (▼ $75)

  • TCE Far East RV: $10,197/day (▼ $142)

• Outlook: Pacific may continue to drag unless Atlantic gains enough traction to absorb surplus tonnage.

Supramax: Subdued with Pockets of Activity in South Atlantic and Indian Ocean

Supramax markets remained largely stagnant, with minimal movement due to low inquiry and rising prompt tonnage. Sporadic strength was seen in the South Atlantic, but it lacked consistency. Activity in the US Gulf and Asia was especially weak, and period fixtures remained scarce.

• Rates:

  • Transatlantic RV: $11,789/day (▲ $96)

  • US Gulf to China/Japan: $15,093/day (▲ $200)

  • South China to Indonesia RV: $10,963/day (▼ $87)

• Outlook: Largely sideways unless fresh demand materializes from Southeast Asia or India.

Time Charter Market: Capesize and Newcastlemax T/C Rates Decline

A downward correction was seen in time charter rates for larger segments:

• Capesize (180′): $19,300/day (▼ $1,775)

• Newcastlemax (208′): $23,300/day (▼ $1,775)

• Smaller segments like Panamax, Ultramax, and Handysize held steady, reflecting more balanced supply-demand dynamics.

Baltic Dry Index (BDI)

• BDI closed at 1,374 (▼ 32), reflecting the week’s mixed performance.

The Capesize segment continues to find support in Pacific trades, but heavy tonnage and weaker Atlantic activity pose challenges. Panamax and Supramax sectors remain directionless, impacted by holidays, limited fresh cargoes, and increasing prompt tonnage. Unless new demand emerges or supply tightens meaningfully, gains are likely to remain capped in the short term.