The Capesize market experienced a volatile week marked by sharp swings in sentiment and rates following China’s announcement of new port fees on U.S. linked vessels.
Capesize Market
The Capesize market was highly volatile, initially gaining on speculation following China’s announcement of new port fees on U.S.-linked vessels, then sharply correcting once it became clear that Chinese-built tonnage would be exempt.
- Pacific Market (C5): Rates fluctuated significantly, ranging from the low $12.00s to the low $10.00s, with sentiment edging firmer by week’s end due to better operator demand.
- South Atlantic (C3): The South Brazil and West Africa to China route saw levels soften to the low $23.00s before re-firming to close the week in the mid/upper $24.00s.
- North Atlantic: This market remained relatively balanced with consistent demand for transatlantic and fronthaul voyages.
- BCI 5TC (Baltic Capesize Index): Opened at $28,132, dipped midweek to $24,185, and recovered to $25,882 by the end of the week, reflecting the overall volatility.
Panamax Market
Activity was initially curtailed by USA vs. China trade/tariff speculation, but physical market fundamentals remained mostly steady despite a volatile FFA market. Asia witnessed a firmer week.
- North Atlantic Fronthaul: Demand was nervous, but trans-Atlantic rates settled flat, with $17,000 achieved for US Gulf/US East Coast to Skaw-Gibraltar redelivery trips.
- EC South America: Activity increased for early November arrivals, with rates of low-mid $15,000’s being agreed.
- Asia/NoPac: The market firmed, with an 82,000-dwt fixing a NoPac round for $16,500. Indonesian to China trips for LME tonnage achieved upper $16,000 levels.
- Period Activity: Limited, with $16,000 reported for an 82,000-dwt on a 6/8 month basis.
Ultramax/Supramax Market
The sector had a slightly more positive week following widespread holidays, with stronger gains in the South Atlantic and Asia.
- South Atlantic: Stronger numbers included a 61,000-dwt fixing an EC South American fronthaul at $16,750 plus a $675,000 ballast bonus. A 57,000-dwt from West Africa fixed a trip to China for $20,500.
- Mediterranean: Better demand was seen, with a 64,000-dwt fixing from Alexandria to the US Gulf in the mid $14,000s.
- Asia: Fresh enquiry helped rates to improve. Fixtures included a 63,000-dwt fixing a NoPac round redelivery Bangladesh for $17,000, and a 61,000-dwt fixing from Kalimantan to Bangladesh for $20,000.
- Indian Ocean: Activity registered a 64,000-dwt fixture from Tuticorin via South Africa redelivery Singapore-Japan at $16,750.
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Source: Baltic Exchange
