The Capesize market experienced a volatile week. After an initial decline, rates rebounded towards the end of the week. While the Pacific market remained under pressure due to oversupply and limited miner activity, the overall market showed signs of recovery, reports Baltic Exchange.
Capesize
The South Brazil and West Africa markets experienced a strengthening of rates due to tighter tonnage availability. The C3 index increased, reflecting improved market conditions.
In the North Atlantic, sentiment improved towards the end of the week, driven by extreme weather and limited tonnage availability. This led to a significant increase in rates for transatlantic (C8) and fronthaul (C9) routes.
Panamax
The decline in the Panamax market showed no signs of abating this week, with further substantial corrections in both basins. In the Atlantic, despite decent demand for both minerals and grains in the North, this fell short against the build-up of tonnage count, which ultimately weighed heavily on the deals reported this week.
Limited talk midweek of a floor being found from EC South America appeared premature, with charterers still able to pick off the ample blasters for index arrival dates, with rates now appearing to be in the $8,000’s as opposed to $9,000’s first part of the week.
Asia also remained downcast, rates ex NoPac the exception remaining steady all week as tonnage remained tight in the North, whereas the South mirrored something of a bloodbath as both rates ex Australia and in particular Indonesia came under severe pressure, with rates in the $1,000’s agreed ample times on the older/smaller LME types.
Ultramax/Supramax
The start of 2025 for many would be one to forget as both the Atlantic and Asian arenas failed to gain any real traction. Fresh enquiry remained limited and there was a considerable amount of prompt tonnage which remained open after the holiday season. In the Atlantic, a 63,000-dwt was fixed from the US Gulf to the East Mediterranean at $18,500, whilst for fronthaul business a 58,000-dwt fixed a trip to Japan at $17,250. From the South Atlantic, again opportunities remained limited a 63,000-dwt fixing delivery EC South America trip to Bangladesh at $13,400 plus $340,000 ballast bonus.
The abundance of tonnage in the Asian arena saw a 57,000-dwt fixing an Indonesian round basis delivery to South China in the mid $5,000. Limited steel movement further north saw a 61,000-dwt fixing a trip to the Continent at $8,750 for the first 75 days and $12,000 for the balance. Period action remained subdued; a 63,000-dwt open West Africa fixing 3/5 months trading redelivery worldwide at $14,000.
Handysize
As anticipated, the first full week of the new year has seen limited activity across both the Atlantic and Asian basins, with market sentiment remaining generally subdued. In the Atlantic, the market maintains a soft tone, as the tonnage count maintains its length across most loading areas.
A 28,000-dwt fixed delivery Montevideo 15/30 Jan trip to redelivery West Coast Central America with agriculture $15,700. A 36,000-dwt fixed delivery Praia Mole to redelivery North Coast South America at $13,500. Similarly, in Asia, the overall sentiment also remains negative, owners with prompt vessels are adjusting their expectations due to the limited cargo availability, which has resulted in rates falling below the previous levels.
A 38,000-dwt fixed delivery Singapore trip via Thailand to redelivery Indonesia with sugar at $7,500. Period activity was limited too with most operators are hesitant to take on risk at this time.
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Source: Baltic Exchange
