Miners and operators are actively seeking to book C5 coal cargoes for split dates or early September. There has been a slight increase in the volume of C5 coal available from East Australia and other parts of the Pacific region compared to the previous week.
Capesize Market Analysis
The Capesize market is showing a mixed sentiment with a focus on fixtures for early to end-September dates. While there has been a slight increase in cargo volumes from East Australia and other parts of the Pacific, spot tonnage in the Pacific is becoming looser. In contrast, tonnage availability for late August and early September remains relatively tight, particularly for C3 routes (ex Brazil and West Africa). This has led to fixtures for early September on the C3 route concluding at low $25 per metric ton (pmt), while end-September dates were in the mid-to-high $24 pmt range. The C5 route, from Western Australia, is seeing rates at sub-$10 pmt.
Panamax Market Analysis
The Panamax market is currently balanced, with a clear divide between the Atlantic and Pacific basins. The Atlantic market continues to soften due to a lack of fresh inquiries, limited grain and coal volumes, and a growing list of available ships. This has put pressure on rates, especially for transatlantic and East Coast South America (ECSA) runs. Conversely, the Pacific market is showing firmer signs. This is driven by robust Indonesian coal flows to China and renewed demand from Australia. The resulting tightening of tonnage lists in the southern Pacific is leading to premiums for prompt vessel positions, though ships that miss key laycan requirements are still being discounted.
Supramax and Handysize Market Analysis
The Supramax market also has a split sentiment. The Atlantic remains firm, supported by steady inquiries from the US Gulf and the Mediterranean regions. However, the South Atlantic is struggling to gain momentum. In Asia, the market is slow, with an abundance of prompt positions keeping rates contained. The Handysize sector is generally subdued. The South Atlantic remains quiet but balanced, while the Asian market is experiencing downward pressure in the south, though rates in the north are holding steady.
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Source: Fearnleys
