The Capesize market began the week with strength, continuing the positive trend from the previous week. Specifically, rates in the Pacific region saw a significant jump, with the C5 route (likely iron ore from Australia to China) exceeding $10.00. This increase created a noticeable difference in earnings compared to the C3 route (likely iron ore from Brazil to China) in the Atlantic, where rates were lower, reports Baltic Exchange.
Capesize
Despite all three major miners being active in the Pacific by midweek, C5 rates dipped below $10 before recovering slightly by week’s end. The South Atlantic market steadily strengthened. Strong early April cargo demand from South Brazil and West Africa to China, along with fewer vessels in ballast, pushed C3 rates towards $23.00, narrowing the gap with C5 rates.
The North Atlantic experienced moderate activity and tightening tonnage, supporting rates. Overall, despite some midweek fluctuations, the market finished the week positively. The BCI 5TC index increased by $2,817 on the day and $3,660 over the week, closing at $20,084.
Panamax
The Panamax market remained volatile this week despite healthy activity. While there was some mid-week discussion of a potential rate floor, this proved premature. The week ended with rates mostly stable.
- Atlantic: Slightly improved cargo volume across typical trading routes, but rates and sentiment didn’t improve due to the continued imbalance between tonnage supply and demand.
- Pacific: The Pacific market softened over the week. While some vessels secured cover at close to previous levels, rates generally declined towards the weekend. A NoPac trip on an 82,000-dwt vessel delivered in Japan achieved $12,500 early in the week, but similar trips were closer to $10,500 by the end of the week.
- Period Market: An 82,000-dwt vessel delivered in China was fixed for one year at $14,000. A scrubber-fitted 82,000-dwt vessel delivered in China was fixed for 5-7 months at $14,750.
Supramax
The Supramax/Handysize market had a mixed week.
- Atlantic: The Atlantic market was described as “positional,” meaning rates were largely flat despite some demand from the Continent-Mediterranean. Downward pressure came from the US Gulf, with a 63,000-dwt vessel fixing a petcoke trip to India at $17,000. South America saw a balanced market, with a 61,000-dwt vessel fixing in the upper $12,000s plus an upper $200,000s ballast bonus.
- Asia: Uncertainty around Indonesian coal pricing led to a subdued market and limited activity. A 63,000-dwt vessel fixed delivery Japan for a NoPac round at $12,500. Another 63,000-dwt vessel was heard fixing at $14,000 for a steel run from China to the Arabian Gulf.
- Indian Ocean: Stronger demand was seen, with a 64,000-dwt vessel fixing delivery Port Elizabeth trip China at $15,500 plus a $155,000 ballast bonus.
- Period Market: Limited activity. A 63,000-dwt vessel open in Vietnam was reportedly fixed for three years at $13,750.
Handysize
The Handy market showed a mixed performance this week with modest rate movements.
- Continent/Mediterranean: Sentiment was generally weak, with rates slightly declining. A 37,000-dwt vessel fixed delivery Otranto, redelivery North Coast South America at $7,000.
- South Atlantic: Limited prompt vessel inquiries put downward pressure on rates. A 38,000-dwt vessel open in Itaquai on March 5th fixed delivery Recalada, redelivery South Africa at $14,000.
- US Gulf: The market remained subdued and weakened. A 37,000-dwt vessel fixed delivery Dominican Republic, redelivery US East Coast at $8,500.
- Asia: The market was positive due to healthy cargo volumes. A 37,000-dwt vessel reportedly fixed a trip to redelivery Japan at $11,000.
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Source: Baltic Exchange
