On the West Australia side, the indication of healthy volumes from both miners and operators for loadings from June 20th onwards suggests a strong flow of iron ore. Western Australia is the world’s largest iron ore supplier, and robust activity from this region is a significant driver for Capesize demand. This implies that the major producers are planning consistent shipments, which helps to underpin freight rates, reports Fearnleys.
Capesize
The Capesize market is showing a mixed sentiment, with a tightening supply of vessels in some regions but continued pressure on rates from other factors.
For C3 (Brazil to Far East) and C5 (West Africa to Far East) routes, there are a handful of inquiries for end-June dates, and operators are now actively looking for tonnage for the first half of July. There’s also some interest for more forward bookings into the second half of July. This indicates a consistent, if not overwhelming, demand for these long-haul routes.
A significant development is the tightening of tonnage opening in the Far East, which is a positive sign for owners seeking employment in that region. The same trend is observed for ballasting tonnage, meaning fewer ships are available to head to loading areas, which could support rates.
In terms of pricing, C5 rates reached high USD 9 per metric ton (pmt) levels by mid-week. For C3, sentiment is on an uptick, with rates seen at mid-to-high USD 21 pmt for early to mid-July dates. This suggests a strengthening in the Atlantic basin for Capesize routes.
Panamax
The Panamax market demonstrated relative stability this week, with balanced fundamentals observed across both the Atlantic and Pacific basins.
In the Atlantic, grain shipments continued to be the primary driver of activity, supplemented by occasional coal cargoes. Charterers, however, actively attempted to exert downward pressure on rates.
The Pacific experienced a gradual improvement in sentiment. An increase in inquiries helped to clear out spot tonnage, fostering a more optimistic outlook. While activity in Asia was somewhat subdued due to regional holidays, overall rate levels were maintained. The market is now looking for a renewed surge in demand to sustain its current footing.
Supramax
The Supramax and Handysize markets continued to face challenging conditions this week, remaining subdued across both the Atlantic and Pacific basins. This persistent weakness is primarily attributed to a limited fresh demand for cargoes combined with an oversupply of available tonnage.
In the Atlantic, Supramax activity was largely flat. There was only a minor improvement observed in the Continent-Mediterranean region, indicating some localized demand, but the South Atlantic and US Gulf markets remained soft, suggesting a continued imbalance of vessels over available cargoes.
Similarly, Asia saw reduced activity for these segments, influenced by regional holidays and a generally weak sentiment.
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Source: Fearnleys
