The Capesize market for the C5 route (West Australia to China) has experienced a subdued week, indicating a softening sentiment in the Pacific basin. This aligns with broader trends reported for the Capesize sector.
Capesize
The Capesize market has seen limited activity this week on the C5 route (ex-West Australia), with miners largely absent and few fixtures confirmed by tender and operators. As mid-week approaches, there’s a slight increase in operator enquiries for mid-July dates. Peripheral markets like East Australia are showing a small uptick in enquiry volume.
On the C3 route (ex-Brazil and West Africa), the market is in backwardation, indicating a tightening of tonnage for dates before July 20. Operators are actively seeking vessels for the second half of July through August. Pacific spot tonnage is gradually increasing, with a notable number of prompt vessels becoming available.
In terms of rates, no fixed-rate C5 fixtures were reported this week, with offers generally hovering in the low to mid-USD 9s. For the C3 route, mid to high USD 22 per metric tonne (pmt) levels were observed for mid to late July dates.
Panamax
The Panamax market has maintained its positive momentum this week, holding firmly around the USD 12,000 index mark. This resilience is attributed to consistent seasonal trends and steady enquiry across both the Atlantic and Pacific basins.
Atlantic sentiment has strengthened, particularly in the northern regions, where robust front-haul activity has tightened tonnage lists, pushing rates towards the mid-USD 19,000 level basis BKI. Transatlantic rates remained steady despite lighter volumes, primarily due to limited spot availability.
In the Pacific, solid gains were observed, driven by increased cargo flows from Australia and Indonesia. Premium rates for quality tonnage in this basin are now comfortably in the USD 12,000-14,000 range, especially for ex-NoPac and Indo rounds. While fundamental cargo volumes haven’t shown significant growth, the current market conditions are perceived as well-balanced, and sentiment remains cautiously upbeat heading into next week.
Supramax
The Supramax market gained modest momentum over the past week, primarily propelled by firmer activity in Asia, particularly in the NoPac (North Pacific) and Indonesia trades. In contrast, the Atlantic market remained muted overall, with the US Gulf continuing to face limited enquiry and downward pressure on rates.
The South Atlantic market remained balanced, with little change in fundamentals. Some improved sentiment was noted in the Continent-Mediterranean region. Period interest for Supramax vessels saw an uptick, with a few short-term fixtures reported, though specific details were scarce.
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Source: Fearnleys
