The dry bulk market has exhibited varied trends across the major vessel segments, with Asian holidays impacting the start of the week but a midweek recovery bolstering sentiment in the larger size classes.
Capesize Market Overview
The Capesize market experienced a quiet start followed by a midweek firming due to a tightening vessel supply.
- Activity Levels: The start of the week was slow across all basins due to the Golden Week in China and holidays in Korea, but activity increased as the week progressed.
- Pacific Market (C5): Operators and miners were active for late October dates, and there were several forward inquiries for November and the fourth quarter.
- Tonnage Dynamics: Typhoon activity has disrupted vessel itineraries, causing a thinning of available tonnage 14−18 days out. This reduced supply, combined with recovered midweek demand, led to a steady climb in rates to the mid USD 9 per metric ton (pmt) levels for the C5 route. Other Pacific routes remained quiet.
- Atlantic Market (C3): Ex-Brazil and West Africa routes saw inquiries for early to mid-November dates. Operators were noted to be risk-averse, leading to a spread between owner offers (generally USD 24 pmt and up) and charterer bids (generally sub-USD 23 to sub-USD 24 pmt). The C3 route remained quiet throughout the week.
Panamax Market Overview
The Panamax market firmed as the week advanced, overcoming the initial drag from Asian holidays.
- Overall Sentiment: The market gained strength as the week progressed.
- Atlantic Basin: The North Atlantic saw a tightening of the tonnage list, which improved sentiment and rates. Grain fronthauls commanded a premium, while mineral runs were quieter. The South Atlantic remained largely steady.
- Pacific Basin: The Pacific also strengthened, particularly for North Pacific rounds. A limited amount of spot tonnage forced charterers seeking prompt cover to pay above the last-done rates.
- Outlook: Owner confidence has rebounded, and with fresh demand expected, both Atlantic and Pacific basins are poised to maintain a firmer tone moving into mid-October.
Supramax/Handysize Market Overview
The smaller bulk carrier segments opened on a subdued note and remain balanced but cautious.
- Activity and Sentiment: Both the Handysize and Ultramax markets began the week quietly with a mostly positional focus. Asian holidays further muted activity, causing owners and charterers to adopt a wait-and-see approach.
- Atlantic Regions: The Continent and Mediterranean markets held steady, supported by consistent cargo flow. In contrast, the South Atlantic and U.S. Gulf showed signs of softening due to slower demand.
- Market Balance: Overall, the Supramax segment is characterized as balanced but cautious.
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Source: Fearnleys
