The dry bulk market presented a mixed picture over the past week, with Capesize vessels continuing to struggle while Panamax and smaller segments experienced positional improvements. Market dynamics were heavily influenced by global holidays, shifting demand, and regional tonnage availability, leading to fluctuations in rates across basins.
Capesize Market Under Pressure Across Both Basins
The Capesize segment remained weak throughout the shortened week, with the Baltic Capesize Index (BCI 5TC) declining by $3,072 to close at $14,169. Trans-Atlantic voyages featured low timecharter equivalent values despite their shorter durations, causing the C8 route to settle at $13,071. In Brazil, although activity picked up for late May and early June laycans, daily declines in rate levels pushed the C3 route to $18,215 by week’s end. The Pacific market saw consistent miner interest, but fixtures softened from $7.90 into the mid $7s, reflecting weaker fundamentals.
Panamax Market Sees Gains in Atlantic, Fragility in Pacific
The Panamax sector fared better overall, with notable improvements in the North Atlantic. Grain runs ex-NC South America drove trans-Atlantic and fronthaul momentum, with rates of $18,500–$19,000 reported on index tonnage via Gibraltar. In contrast, the Pacific market remained fragile, weighed down by oversupply of tonnage and limited South American pull. An 82,000-dwt fixed from the Philippines for a 10–12 month period at rates in the low-mid $12,000s, indicating limited appetite for period coverage.
Ultramax, Supramax, and Handysize Show Mixed Regional Trends
Ultramax and Supramax activity reflected regional strength. The US Gulf and South Atlantic provided stronger demand, with a 63,000-dwt fixed US Gulf trans-Atlantic at $16,000, and an Ultramax rumoured fixed EC South America to trans-Atlantic in the mid $20,000s. Conversely, the Continent and Mediterranean remained patchy. In the Indian Ocean, a 64,000-dwt secured $16,000 delivery Tema via South Africa to China, while Asia remained subdued.
Handysize trends varied by region. The South Atlantic saw a slight rate uptick with steady demand. A 37,000-dwt fixed from Recalada to the Mediterranean at $17,000. Meanwhile, US Gulf sentiment remained weak, with a 35,000-dwt fixed SW Pass to UK-Continent at $8,000. In Asia, increased tonnage offset fresh demand, holding rates steady. Period activity was limited, but a 40,000-dwt was fixed at 120.5% of BSHI for a year’s trading starting June–July 2025.
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Source: BALTIC EXCHANGE
