Capesize Continues Strong Rally While Smaller Segments See Easing Rates

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The dry bulk shipping market saw a mixed performance this week, with the Capesize segment continuing its strong rally while other segments experienced softening rates.

Capesize

The Capesize market remained firm and gained significant momentum in the latter half of the week. The Capesize 5TC (Timecharter) average surged by over $6,000 week-on-week to $31,756 on Friday, breaking the $30,000 threshold.

  • North Atlantic: A long list of available cargoes and a tight supply of vessels led to strong rates. A transatlantic round voyage is currently paying around $42,000 per day, and a fronthaul timecharter trip is commanding over $60,000 per day.
  • Brazil: Steady upward pressure from increasing bids and offers pushed the Brazil to China route rate to $24.745, an increase of $1.70 over the week.
  • Pacific: The C5 route (Australia to China) surged to a new six-week high of $10.575 before easing slightly to $10.285 on Friday as trading activity slowed.
  • Period Fixtures: A long-term period fixture was reported for a Newcastlemax vessel (a large Capesize ship) at $30,000 for three years.

Panamax

It was a negative week for the Panamax market, with rates easing across the board.

  • Atlantic: The market was primarily led by fronthaul trips, with a steady flow of grain cargo from East Coast South America (ECSA) and mineral demand from the US East Coast. However, the trans-Atlantic market softened, and an abundance of available ships in the North Atlantic came under pressure, leading to lower rates.
  • Asia: Despite steady cargo volumes from Australia, rates began to ease, with little support from the South American market. A trip from Japan via Australia was reported fixed at $15,250 per day.
  • Period Fixtures: Period activity was minimal, with one notable fixture for a scrubber-fitted vessel at $15,500 for 11-13 months.

Supramax

The Ultramax/Supramax market showed a clear division, with the Atlantic market halting while the Asian side remained positive.

  • Atlantic: Key areas in the Atlantic lost traction due to limited fresh demand, causing rates for fronthaul trips to fall into the low $20,000s. A trip from South America to Iraq was heard fixed in the upper $15,000s with a ballast bonus.
  • Indian Ocean: This market remained flat, with a trip from Port Elizabeth to the Far East fetching $16,000 per day plus a ballast bonus.
  • Asia: Sentiment remained stronger in Asia. A backhaul trip from CJK (China, Japan, Korea) to West Africa was fixed at $16,000, and a trip from Singapore via Indonesia to China was heard fixed in the mid $18,000s.

Handysize

The Handysize market delivered a mixed performance with modest fluctuations across both basins.

  • Atlantic: The Continent and Mediterranean regions were subdued, with rates holding steady. A trip from Safi to the ARAG (Amsterdam-Rotterdam-Antwerp-Ghent) range with gypsum was fixed at $13,000. The South Atlantic saw limited activity and rates began to soften. In contrast, the U.S. Gulf was more active, with rates remaining largely unchanged. A trip with scrap from SW Pass to East Coast Mexico was fixed at $15,500.
  • Asia: The Asian market continued its upward trend. Tonnage supply tightened, leading to modest rate gains in some areas. A trip from Lanshan via North China to Malaysia was fixed at $13,250.

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Source: Baltic Exchange