The Capesize market retained an overall firmer tone through the week, though momentum eased into the close.
Capesize Market Overview
The Capesize market maintained a firmer overall tone throughout the week, though momentum eased towards the close. The BCI 5TC index climbed from just under $28,000 to push through the $30,000 mark before finishing slightly lower at $30,076. In the Pacific, miner activity was initially strong but thinned by Friday, with one miner fixing at $10.80 and reports of higher rates lacking clarity.
Despite Typhoon Ragasa passing through South China, rates held reasonably steady, supported by a tighter tonnage list. In the Atlantic, the C3 index for the Brazil to China route climbed towards $26.00 but slipped back to $25.935 by Friday due to a lack of fresh bids. The North Atlantic also posted notable early gains, with fronthaul values breaking into the $50,000s and transatlantic trades strengthening before activity slowed towards the end of the week.
Panamax Market Overview
The Panamax market began the week on a firm footing, with the bullish trend continuing in Asia. Conversely, the Atlantic started nervously with limited fresh demand in the North Atlantic for transatlantic trips, facing an expanding tonnage count. South America was steady, with first-half October arrivals commanding a premium over index dates, which hovered between the low $15,000s and $16,000.
In Asia, steady support for Australian minerals provided impetus, with average rates returning around the low-mid $15,000s. Southeast Asia saw good demand from all angles due to healthy Indonesian demand. Period activity was also noted, with an 82,000-dwt delivery to Japan achieving $15,500 for one year’s trading.
Supramax Market Overview
The Ultramax/Supramax sector showed two contrasting trends: the Atlantic remained firm while the Asian arena lost further ground. The Atlantic was a robust affair with continued demand from key areas. Notable fixtures included a 63,000-dwt fixing from the US Gulf to India at $34,750, and an Ultramax delivery from Santos for a trip to China at $17,500 plus a $750,000 ballast bonus. Strong demand from the Baltic saw a 63,000-dwt open Turkey fix a trip via the Lower Baltic to China, transiting the Cape of Good Hope, in the low $20,000s.
By contrast, the Asian arena saw limited demand and a buildup of prompt tonnage, with a 53,000-dwt fixing delivery Singapore via Indonesia to China at $14,000. Indian Ocean rates pushed up slightly, with a 63,000-dwt fixing delivery Port Elizabeth a trip to China at $20,000 plus a $200,000 ballast bonus.
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Source: Baltic Exchange
