The Capesize market endured a challenging week, marked by a steady decline in rates and a sharp deterioration in sentiment midweek.
Capesize Market
The Capesize market experienced a turbulent week, with rates consistently falling and sentiment sharply deteriorating mid-week. The BCI 5TC index fell from above $29,000 to $22,595 by the end of the week. This drop was fueled by unconfirmed reports that China’s state-run buyer CMRG had temporarily suspended iron ore purchases from BHP, which amplified the existing negative sentiment caused by the upcoming Golden Week holiday. In the Pacific, C5 offers decreased from over $11.00 to under $9.00 before stabilizing. The Atlantic saw new demand, but most fixtures on Transatlantic and Fronthaul routes were concluded at softer levels. Rates from South Brazil and West Africa (C3) eased into the low $23s due to low inquiry. However, a slight rebound in Forward Freight Agreements (FFAs) at the end of the week suggested that a market floor might be forming.
Panamax Market
The Panamax market had a slow week, largely due to holidays in Asia. In the Atlantic, consistent but not strong demand from North America was insufficient to boost the market. Asia was severely affected by Golden Week and other holidays, causing the market to drift despite steady demand from Australia and the North Pacific (NoPac). Notable Fronthaul fixtures included an 83,000-dwt vessel fixing a US East Coast to India trip at $25,000, and an 82,000-dwt fixing an EC South America to Far East trip at $17,500. In Asia, NoPac and Australia round fares for index-type vessels were reported at around $15,000. Overall, period activity was limited, reflecting the fragile market sentiment.
Supramax Market
The Ultramax/Supramax sector began the week with a relatively firm tone in the Atlantic, but this momentum was attributed to positional factors and did not last. Demand was present in both the North and South Atlantic. A 61,000-dwt vessel was reported fixed for a trans-Atlantic run from the US Gulf at $32,500. Tonnage tightened from the Continent, and strong scrap demand led to a 58,000-dwt fixing from the Continent to the East Mediterranean in the upper $20,000s.
In contrast, Asia was subdued due to the Chinese Golden Week holiday, leading to reduced demand and negative sentiment. Notable fixtures in the South included a 61,000-dwt vessel fixed from Koh Sichang via Indonesia to China at $11,500, and a 57,000-dwt fixed from Singapore via Indonesia to Bangladesh in the mid $14,000s. The Indian Ocean saw limited activity, with one 57,000-dwt fixing a trip from Salalah to the West Coast of India in the low $16,000s. Limited period action was observed, including a 60,000-dwt fixed for a 16.5 to 18.5-month period delivery China at $14,500.
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Source: Baltic Exchange
