Panamax Sector Rallies on Strong Atlantic and Pacific Demand

October 27, 2025

the dry bulk shipping market shows varied performance this week, with the Capesize sector softening and the Panamax sector strengthening.

Capesize Market

The market lost momentum this week, closing on a softer note due to weakening demand and a build-up of available tonnage:

Pacific Basin: Early positivity from steady miner demand and operational delays faded as offers for the key C5 route (likely West Australia/China) slipped from the mid-to-high $10.00s into the upper $9.00s.
Atlantic Basin: Initial strength from transatlantic and fronthaul levels also declined as fresh cargo demand waned. Rates for South Brazil and West Africa to China (C3 route) eased from the mid $24.00s towards the mid $22.00s.
Market Index (BCI 5TC): The index peaked on Tuesday at $26,404 before declining to close the week at $23,811.
Compounding Factor: A notable sell-off in the Forward Freight Agreement (FFA) market contributed to the softer sentiment.

The market strengthened throughout the week, supported by firm sentiment and steady cargo demand in both basins:

Atlantic Basin: Improved mineral demand and a tightening list of available vessels supported gains, particularly on U.S. East Coast fronthaul routes. A premium was paid for end-November positions in the South Atlantic, with a fixture reported at $16,350 plus a $635,000 gross ballast bonus for a trip via East Coast South America to the Singapore–Japan range.
Pacific Basin: Consistent demand from Australia and NoPac (North Pacific) underpinned the firm sentiment. NoPac rounds hovered around $18,500–$19,000, and Australia round trips averaged $17,500–$18,500.
Period Activity: Confidence was boosted by period fixtures, including a one-year index-linked fixture reportedly concluded at 113% of the BPI (5TC).
Outlook: The week closed firm, with balanced supply and demand suggesting continued strength.

The sector saw a definite change in direction, with regional variations in performance:

Atlantic Underperformance: The Atlantic weakened due to a reported drop in cargo supply from key areas like the U.S. Gulf, leading to a drop in rates. A fronthaul fixture was rumored in the mid-to-upper $20,000s. The South Atlantic also lacked demand, though a fronthaul fixture was heard at $16,750 plus a $675,000 ballast bonus.
North Continent Strength: The North Continent was the only bright area, maintaining strength due to scrap demand. A fixture was reported for a trip to the East Mediterranean at $29,000.
Asia Split: Poor sentiment returned to the south, with an Indonesia round trip from Koh Sichang fixing in the mid $12,000s. However, increased enquiry from the NoPac and Australasia regions helped maintain a more positive feel further north, with a trip via NoPac redelivery Bangladesh fixing at $17,500.
Period Fixture: An Ultramax was fixed for 5-7 months in the high $15,000s.

Did you subscribe to our daily Newsletter?

It’s Free Click here to Subscribe!