The dry bulk shipping market witnessed a dynamic week, with Capesize vessels leading a robust rally, while Panamax and Ultramax/Supramax segments experienced more mixed or moderating trends after initial gains.
Capesize Market
The Capesize market experienced a strong and sustained rally last week, driven by positive sentiment and momentum across both the Pacific and Atlantic basins. The BCI 5TC (Baltic Capesize Index 5 Time Charter Average), a weighted average of daily earnings for Capesize vessels on five key routes, surged by $5,942 to close at $25,575. This significant increase was underpinned by tightening tonnage lists and increased cargo volumes, particularly on the South Brazil and West Africa to China routes.
In the Pacific, C5 (West Australia to Qingdao) rates showed steady improvement, supported by solid demand from major miners, heightened operator activity, and a gradually tightening tonnage list. A mid-week flurry of fixtures pushed rates close to the $9.80 mark before easing slightly to the $9.50–$9.60 range by week’s end.
The Atlantic basin also saw robust activity, especially on C3 (Tubarao to Qingdao), with rates climbing from the low $21s to $23 for end-August laycans. This was aided by strong inquiry and a steadily shortening ballaster list. In the North Atlantic, sentiment remained bullish, with firm transatlantic and fronthaul fixtures, one reportedly around $50,000/day, highlighting the tight tonnage situation and strong demand in that region.
Panamax Market
The Panamax market experienced a mixed week. Initial strong footing and gains observed at the start of the week slowly dissipated as charterers reassessed their positions. However, the week ended with fundamentals largely restored and rates holding steady again, with tonnage appearing tight in certain areas for prompt loading.
From the Atlantic, the North saw a muted week. In the South, an 82,000-dwt vessel delivering in Singapore secured $18,000 for an East Coast South America round trip redelivery Far East early in the week. However, closer to the week’s end, similar trips for the same vessel type were achieving closer to $16,000.
Asia saw healthy levels of demand from Indonesia and Australia, with rates around $16,000 achieved multiple times for Australian round trips on index-type tonnage. The week also saw a decent pick-up in period activity, notably an 82,000-dwt vessel delivering in Japan reportedly achieving very high $15,000s for a 5/7-month period, which was a highlight of the week.
Ultramax/Supramax Market
The Ultramax/Supramax market started the week on a very firm footing, with a scarcity of vessels and increased demand leading to healthier rate levels in most key areas. However, this positive momentum seemed to stall as the week drew to a close, indicating that a ceiling might have been reached.
In the Atlantic, from the US Gulf, Ultramax sizes were fixing around $30,000 for fronthaul business at the beginning of the week, with similar levels achieved for trans-Atlantic runs. From the South Atlantic, a 63,000-dwt vessel was reported fixed for a trip from East Coast South America to Chittagong at $19,000 plus a $900,000 ballast bonus.
From Asia, strong demand for backhaul business from the North kept rates at a firm level. A 63,000-dwt vessel was fixed delivery Singapore for a trip via Indonesia to West Coast India at $17,000. Buoyed by stronger demand from South America, rates from the Indian Ocean also pushed upwards. A 62,000-dwt vessel was heard to have fixed delivery Port Elizabeth for a trip to China at around $19,000 plus a $900,000 ballast bonus.
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Source: Baltic Exchange
