The Capesize market surged in the Atlantic, while Panamax and Ultramax/Supramax markets saw sluggish demand. Handysize markets were mixed, with strength in the Continent and Pacific, but weakness in the South Atlantic and U.S. Gulf, reports Baltic Exchange.
Capesize
This week saw significant positive momentum in the Capesize market. The BCI 5TC surged by $3,436, closing the week at $30,598, driven largely by robust activity in the North Atlantic region. Monday began with an encouraging uptick in both the Pacific and North Atlantic, pushing the BCI to $27,162. Despite some uncertainty in the Pacific due to a miner withdrawing from the market, overall demand for forward dates provided support mid-week. The South Brazil and West Africa to China markets remained relatively subdued but showed resilience as offers held firm at $28 on C3 and above. North Atlantic routes played a key role throughout the week, with consistent gains in transatlantic and fronthaul routes. By Thursday, the C8 index surged by $6,535 to $29,071, driven by key fixtures from a major charterer followed by a further increase of $2,715 on Friday, to end the week at $31,786. Overall, while the Pacific basin experienced some flatness, the Atlantic strength propelled the market forward, leading to a bullish end to week 39.
Panamax
A lethargic week for the Panamax market, with limited action in the Atlantic in the South whilst the North of the region fared marginally better but insufficient to prevent the slow drifting of rates. Unsurprisingly activity eased in Asia, as the week progressed with impending Golden Week holidays, and despite some injection of fresh demand ex NoPac, this failed to make any profound impact, and rates drifted. Back in the Atlantic, voyage rumours referenced $54,000 fio being agree for a US Gulf to China grain cargo for October dates, but precise details were lacking. In Asia, reports of $15,000 being achieved a few times for NoPac trips on index type tonnage delivery Japan/Korea. Better period activity came to light week 39, unconfirmed reports of $17,000 being agreed for one year on a scrubber 82,000-dwt type delivery Japan, whilst $17,000 was also achieved on an 76,000-dwt, delivery China basis 4/6 months.
Ultramax/Supramax
A rather lacklustre week from an Atlantic perspective with little excitement and rates generally losing ground as fresh demand remained weak from key areas. The South Atlantic particularly saw limited fresh enquiry a 60,000-dwt fixing from Santos to Chittagong at $15,500 plus $550,000 ballast bonus. From the US Gulf a 57,000-dwt fixed a trip to the East Mediterranean at $18,500. By contrast the Asian arena started the week optimistically, a 63,000-dwt open China fixing a trip to Bangladesh at $18,750, Further south, a 56,000-dwt open Manila fixed a trip via Indonesia redelivery Bangladesh at $19,000. Whilst demand remained from the Indian Ocean rates remained relatively flat, a 63,000-dwt fixing delivery South Africa for a trip the Far East in the mid $15,000s plus very low $500,000s ballast bonus. However, with the upcoming holidays in China demand slowed as the week ended. Period action in the first half saw a 63,000-dwt open North China fixing short period at $18,250.
Handysize
In week 39, the market saw a mixed performance with slight movements across both basins. Both the Continent and Mediterranean regions continued their positive momentum and market appearing more supported with rates edging slightly above previous levels. A 37,000-dwt open Varna 27 Sept reported fixed delivery aps Constanza to redelivery Banjul with grains $11,000. In contrast, the South Atlantic faced ongoing challenges, with a lack of fresh inquiries and minimal activity. The U.S. Gulf market also remained subdued, showing signs of weakening support. A 37,000-dwt open Houston 24 Sep fixed delivery Southwest Pass redelivery Tampico (Gulf of Mexico) with grains $17,000. In the Pacific, activity stayed robust, with sentiment maintaining an optimistic tone, tonnage availability remained tight, while the cargo book showed healthy volumes. A 37,000-dwt vessel open in Tianjin was reported fixed a trip to Indonesia $16,500.
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Source: Baltic Exchange
