The dry bulk shipping market saw varied performance across segments this week, with Capesize and Panamax showing strong positive momentum, particularly in the Atlantic. At the same time, the Supramax sector also enjoyed a robust week due to tightened tonnage.
Capesize Market
The Capesize market exhibited a cautiously optimistic tone this week, characterized by firm activity in the Pacific and a gradually improving Atlantic.
- Pacific Activity: The Pacific remained active throughout the week, with all three major miners engaging in the market. While C5 rates initially softened from early-week highs of $7.60 to $7.35–$7.45 by midweek, sentiment sharply turned more bullish by week’s end, with owners now asking in the low to mid $8.00s.
- Atlantic Improvement: The Atlantic’s Fronthaul and trans-Atlantic markets were initially underwhelming. However, signs of recovery emerged by Thursday as improved spreads and fixtures helped lift sentiment. The South Brazil and West Africa to China markets also showed clear signs of revival, with C3 bids firming from the high $17s to around the high $19.00s to $20.00.
- BCI 5TC Performance: The Baltic Capesize Index (BCI) 5TC reflected this upward momentum, falling from $15,132 on Monday to a midweek low of $13,715 before surging to close the week at $17,453. This demonstrates the strong positive shift seen across the board.
Panamax Market
The Panamax sector experienced a notable surge this week, predominantly driven by activity in the Atlantic basin.
- Atlantic Strength: The North Atlantic saw a robust week-on-week gain of nearly $3,000 on the P1A route. The East Coast South America (ECSA) market also surged significantly, by approximately 25%. Momentum built midweek as tonnage supply tightened across the Continent and West Mediterranean, prompting charterers to quickly meet owners’ offers. A key fixture included an 82,000 dwt vessel fixed at $20,250 for a trans-Atlantic round voyage from Skaw to the US Gulf.
- South Atlantic Premiums: In the South Atlantic, early laycan premiums began influencing index-date fixtures, with several BPI-type vessels securing rates in the mid-$16,000s for trips from India–Southeast Asia via South America.
- Subdued Asia, but Firmer Sentiment: Conversely, the Asian market presented a more subdued picture. Despite steady demand from the North Pacific and Australian regions, tonnage availability remained ample. However, sentiment firmed slightly, leading to modest rate improvements. Owners, buoyed by the strong ECSA momentum, held firmer ideas for Indonesian business. Notably, an 82,000 dwt vessel was fixed at $12,500 for a NoPac round voyage, delivering mid-July from China and redelivering Singapore–Japan.
Ultramax/Supramax Market
It was a strong week for the Ultramax/Supramax sector, as a general tightness in tonnage availability combined with a better amount of cargo led to improved rates in most key areas.
- Atlantic Gains: The South Atlantic saw the Ultramax size gaining popularity, supported by the strong Panamax market. An Ultramax was reported fixed in the upper $20,000s for an East Coast South America trans-Atlantic run. A similar trend was observed from the US Gulf, with a 56,000 dwt vessel fixing also in the upper $20,000s for a trip to Morocco. There was better levels of enquiry from the Continent-Mediterranean, with a 63,000 dwt open East Mediterranean fixing a trip via Egypt to West Africa at $15,000.
- Asia’s Improved Demand: Better demand was the main story from Asia, particularly from the northern regions. A 57,000 dwt vessel fixed delivery China for a trip to West Africa at $12,500 for the first 65 days, followed by $13,500. Further south, a 63,000 dwt vessel was heard fixed delivery Vietnam for a trip to Bangladesh at $20,500.
- Period Activity: Period activity maintained a good volume. A 63,000 dwt vessel open Veracruz was fixed for 9-11 months trading at $15,000, while a 61,000 dwt vessel open Malaysia fixed at $13,300 for 10-13 months.
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Source: Breakwave Advisors
