The West Australia iron ore market is seeing consistent inquiries from operators and miners for mid-to-late March shipments. Some operators are even looking ahead to April, seeking index-linked contracts. However, other areas in the Pacific, like East Australia coal, South Australia, and the North Pacific, have experienced a slight decrease in activity compared to last week, reports Fearnleys.
Capesize
For Capesize bulk carriers:
- C3 (Brazil to China/West Africa): There’s an even mix of inquiries for late March and the first half of April. Spot tonnage availability in the Far East is tighter due to bad weather in North China. Ballasting tonnage is decreasing for the second half of March.
- C5: Rates started the week in the mid-USD 10 pmt range but quickly dropped to the mid-USD 9 pmt range by mid-week.
- C3: Fixtures were concluded at low-mid USD 20 pmt for late March dates and mid-USD 20 pmt for early April dates.
Panamax
The Panamax market experienced a subdued week in both the Atlantic and Pacific basins. Oversupply of tonnage and limited new cargo were the main challenges.
- Atlantic: Despite some increased grain activity from the North Coast of South America (NCSA), the growing number of available vessels in East Coast South America (ECSA) put downward pressure on rates, which fell below $10,000/day due to slow fixture activity for the second half of March.
- Pacific: The Pacific market faced continued downward pressure. Grain round voyages were scarce, and reports of cancelled Indonesian cargoes due to price volatility further dampened market sentiment. While Australian coal cargoes from Cape splits provided some volume relief, they couldn’t prevent the overall downward trend. Rates continued to decline, and no immediate upward movement is expected.
Supramax
The Supramax and Handysize markets began the week quietly, with limited new inquiries and downward pressure on rates across most routes.
- Atlantic: The US Gulf and South America markets remained weak, while the Continent-Mediterranean market showed little change.
- Asia: The Handysize market saw some signs of stabilization due to tightening tonnage availability, but Supramax rates continued to decline due to limited cargo demand.
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Source: Fearnleys
