- Capesize rates dropped sharply due to reduced iron ore volumes from West Australia and softening Atlantic demand.
- Panamax market saw weak activity across basins, with limited demand and growing vessel availability weighing on rates.
- Ultramax/Supramax sector experienced regional variations, with solid South Atlantic fixtures but overall cautious sentiment.
- Handysize market held steady in the U.S. Gulf and South Atlantic but remained subdued in Europe and Asia.
The dry bulk market experienced a mostly downward trend across major vessel classes in week 25, with Capesize and Panamax segments seeing notable rate declines, while Ultramax and Handysize markets displayed more regional variations. A shift in commodity flows, increased vessel availability, and weakened demand influenced overall activity. As reported by the Baltic Exchange, these developments shaped trading dynamics throughout the global dry bulk sector.
Capesize
The Capesize market softened over the week, driven primarily by declining iron ore volumes from West Australia, which put pressure on C5 rates. Although coal cargoes from East Australia provided some support, they were not sufficient to stabilize rates. By week’s end, C5 rates dropped from $11.00 to the low-mid $9.00s. The Atlantic initially held firmer conditions with tighter vessel supply and steady cargo demand, but momentum faded as the week progressed. Both transatlantic and fronthaul rates eased, and the Brazil to China (C3) route saw a backwardation pattern emerge, with rates falling from the high $26.00s to the low $20.00s. Overall, the BCI 5TC lost over $7,000, closing the week at $23,879.
Panamax
It was a quiet week for Panamax vessels, especially in the Atlantic where reduced demand for both grain and minerals contributed to rate declines. The East Coast South America market had a mixed performance, with early-week firmness for first-half July arrivals giving way to weaker sentiment amid growing tonnage. Fixtures for index dates ranged between $11,500 and $13,000 for 82,000-dwt units delivering in the India–Southeast Asia range. In Asia, an oversupply of vessels and limited mineral cargoes from NoPac, Australia, and Indonesia added pressure, leading to a gradual erosion of rates. On the period side, an 82,000-dwt was fixed from Taiwan at $11,000 for 6 to 8 months.
Ultramax/Supramax
The Ultramax and Supramax sectors had a more positional week with mixed trends. In the Atlantic, activity picked up, including a 58,000-dwt fixed from SW Pass to East Coast Mexico at $21,000. The South Atlantic remained busy, highlighted by a 63,000-dwt fixed delivery Recalada to China at $14,000 plus a $400,000 ballast bonus. In contrast, the Continent and Mediterranean areas remained subdued with limited demand. In Asia, activity was muted early on but improved slightly as the week progressed. A 63,000-dwt from China on a NoPac round secured mid $12,000s, while a 56,000-dwt from Southeast Asia to China fixed in the low $10,000s. The Indian Ocean remained sluggish, with a 61,000-dwt fixed from the Arabian Gulf to Australia with steel billets at $9,500.
Handysize
Handysize markets showed mixed signals depending on the region. The Continent and Mediterranean remained under pressure due to sparse inquiries. A 32,000-dwt from Tema was fixed for a West Africa coastal run in the mid to high teens. In contrast, the South Atlantic and U.S. Gulf maintained firm activity. Notable fixtures included a 33,000-dwt from West Africa to the Continent at $17,500 and a 37,000-dwt from Palm Beach via U.S. Gulf to UK-Continent with wood pellets at $18,000. In Asia, long tonnage lists kept sentiment flat, but rates held steady, with a 34,000-dwt from Hong Kong to the Far East fixed at $9,000. Period activity remained limited, with a 28,000-dwt fixing from Southeast Asia at $9,650 for 4 to 6 months.
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Source: Baltic Exchange
