Capesize, Panamax, and Supramax markets face bearish conditions, with weak demand and oversupply pressuring rates. Pacific holds steadier, while the Atlantic struggles. Seasonal trends hint at recovery post-February, reports Fearnpuls.
Capesize
On the West Australia front, we see enquiries from miners and operators for early December dates and some enquiring for second half of December forward dates. Volumes out of East Australia have maintained steady from last week for early to mid December dates. Generally quiet on all other fronts of the Pacific. Not much activity as well on the South Africa front. On C3 ex Brazil to China, enquiries are primarily for second half of December. Far East spot tonnage is ample with a notable number of prompt vessels. Ballasting tonnage is slowly thinning for December. On C5, the week started with fixtures concluding at low-mid USD 11 pmt levels but retreated to low-mid USD 10 pmt levels by mid-week. On C3, we see fixtures concluding at low-mid USD 23 pmt levels for mid December dates.
Panamax
The Panamax market faced sustained headwinds this week, marked by bearish sentiment and declining rates as both the Atlantic and Pacific basins struggled with weak fundamentals. In the Atlantic, a lack of fresh demand, especially from EC South America and the US Gulf, led to an oversupply of tonnage, forcing owners to accept lower rates to secure cover. Baltic activity for December provided some cargo, but this was not enough to counterbalance the broader market weakness. The Pacific saw slightly better activity, with a steady flow of fresh demand from Australia offering some relief; however, the growing tonnage count prevented any meaningful recovery, keeping rates under pressure. Global congestion levels on the loading side are at their lowest since the start of 2023, while discharging congestion has risen slightly but remains below average. Despite coal volumes showing a significant year-on-year increase, the need for longer-haul voyages continues to weigh on the market. Seasonal trends hint at a potential bounce, but the overall picture remains subdued, and any substantial rally is unlikely before February when the Brazilian soybean season – forecasted to be strong – could inject much-needed demand into the market. Until then, the outlook remains challenging, with limited support expected in the coming weeks.
Supramax
The Handysize and Supramax markets experienced a slow week, with weak demand and plenty of available vessels keeping rates under pressure. In the Atlantic, the US Gulf and South Atlantic markets struggled due to oversupply, while the Continent and Mediterranean showed slight stability. In the Pacific, both sectors saw limited fixing activity, with high tonnage levels contributing to softer rates. Northern Asia showed some signs of stabilization for the Supramax market, but overall sentiment remained weak. The Indian Ocean experienced patchy demand, and rates stayed subdued across both sectors.
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Source: Fearnpulse
