The Capesize market experienced a significant surge this week, with the Baltic Capesize Index (BCI) 5TC skyrocketing from $8,620 to $15,074. This reflects a positive shift in sentiment across both the Pacific and Atlantic basins, reports Baltic Exchange.
Capesize
The container shipping market had a strong week.
- C5 Index: The Baltic Container Index (C5) increased significantly from $6.65 on Monday to $9.885 by Friday.
- Atlantic Routes: South Brazil and West Africa to China routes saw consistent rate increases due to new cargo and fewer available vessels.
- C3 Index: The China Container Freight Index (C3) rose from $18.31 to $19.875 by week’s end, with early April fixtures reaching $20.25-$20.30.
- North Atlantic: Despite limited new cargo, positive sentiment prevailed, leading to steady increases in the C8 and C9 indices.
Panamax
The dry bulk shipping market experienced significant pressure this week, particularly in the Atlantic.
- Atlantic: Trans-Atlantic routes saw substantial rate decreases due to a lack of mineral demand and an oversupply of vessels.
- Asia: Initially, the Asian market seemed more resilient, with healthy inquiry and fixture volumes, particularly in the North Pacific due to mineral demand from Australia and Indonesia. However, as the week progressed, downward pressure spread to most areas, and rates began to soften.
- EC South America: Moderate fixing activity occurred throughout the week, but by Thursday, index-type vessels were only achieving rates in the low $14,000s plus low $400,000s ballast bonus range.
- North Pacific: North Pacific round trips were around the $12,000-$13,000 mark for 82,000-dwt vessels.
- Indonesia: Shorter Indonesian round trips saw median rates trending towards the $10,000 mark.
Supramax
The recent upswing in the dry bulk market appears to have stalled.
- Atlantic: The Atlantic market was generally stable, with the US Gulf experiencing some activity, though rates remained flat. The South Atlantic saw a slight easing of rates due to a lack of new demand. A 61,000-dwt vessel was fixed from Recalada to the Arabian Gulf in the mid $12,000s plus a mid $200,000s ballast bonus. The Mediterranean-Continent also experienced low demand, with a 55,000-dwt vessel fixed from the Continent to the Mediterranean at $12,500.
- Asia: Positive sentiment in Asia initially continued but weakened as the week progressed. A 56,000-dwt vessel open in Japan was fixed for a backhaul trip via the Cape of Good Hope to the Continent-Mediterranean at $14,000. A 64,000-dwt vessel open in Indonesia was fixed for a trip to China at $17,000.
- Indian Ocean: The Indian Ocean market was uneven. Ultramax vessels saw rates around $12,000 plus a $120,000 ballast bonus for South Africa to China voyages. Supramax vessels further north saw rates between the mid $5,000s and mid $6,000s for trips from India to China.
Handysize
The handysize market displayed a mixed performance this week, with modest changes across different regions.
- Continent and Mediterranean: These regions maintained positive momentum, with slight rate increases and a generally supported market. A 25,000-dwt vessel was reported fixed delivery Egypt, trip redelivery US Gulf with fertilizer at low $6,000.
- South Atlantic: Strong market fundamentals persisted, particularly for larger handysize vessels. A 39,000-dwt vessel was fixed delivery Recalada, redelivery Liverpool at $16,500.
- US Gulf: While rates saw minor improvements, activity was relatively low compared to other routes. A 38,000-dwt vessel was placed on subjects for SW Pass, redelivery West Coast Central America at $12,000.
- Asia: The Asian market remained strong due to a healthy balance of supply and demand, especially in the North Pacific and Southeast Asia, with several strong fixtures reported. A 38,000-dwt vessel was fixed delivery Japan to redelivery Brazil at $10,500.
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Source: Baltic Exchange
