The Capesize market is strong, with both Pacific and Atlantic basins experiencing a rally, while the Panamax market is split between a softer Atlantic and a firmer Pacific.
Capesize
The Capesize market is strong, with both Pacific and Atlantic basins experiencing a rally. In the Pacific, demand is robust, with an increase in fixtures, particularly from Western Australia. This is further supported by fewer available vessels due to typhoons in South China and a growing attractiveness to ballast. On the Atlantic front, there is a thinning number of ballasters for voyages from Brazil and West Africa. This tightening supply is pushing up rates, with fixtures from Brazil concluding in the high $25 per metric ton (pmt) range, an increase of more than $1 pmt from the previous week.
Panamax
The Panamax market is split between a softer Atlantic and a firmer Pacific. The North Atlantic is struggling with limited fresh inquiries and an abundance of available tonnage, which is putting downward pressure on rates. While South America has been more stable due to grain flows, the overall Atlantic market lacks momentum. In contrast, the Pacific is more active. Steady demand from Australia and Indonesia, pre-Golden Week chartering in China, and weather-related delays have tightened supply and created a more positive market outlook.
Supramax
The Supramax market has also shown a divided sentiment by basin. The Atlantic market remains firm, primarily driven by continued strength in the US Gulf and steady demand in the North Atlantic. The South Atlantic is also strong, though some believe it may be reaching its peak. However, the Pacific market remains under pressure. Charterers hold control in this region, and owners are cautious about repositioning vessels due to negative sentiment and oversupply. The Handysize sector, a smaller vessel class, is mixed, with strength in the South Atlantic but only marginal gains elsewhere.
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Source: Fearnleys
