The positive momentum in the Capesize market from the previous week has been decisively reversed. According to the latest market reports, the Baltic Capesize Index (BCI) 5TC, a weighted average of five key timecharter routes, closed at $27,331 on Friday, representing a substantial weekly drop of $4,425.
Capesize
The positive momentum from the previous week’s Capesize timecharter average was reversed, with a significant weekly decline of $4,425, bringing the 5TC to $27,331. The North Atlantic saw a pause in its surge, with fronthaul rates dropping below $50,000 and the transatlantic route closing at $31,214 per day. The C3 index, which covers the Brazil/West Africa to China route, held steady around the $24 mark for most of the week. In contrast, the C5 index for the West Australia to China route started in the low $10s, dipped slightly, but ultimately rebounded to $10.67 by the weekend, bringing the transpacific round voyage in line with the overall timecharter average.
Panamax
The Panamax market experienced a week of continued declines. The Atlantic basin remained weak, with limited new business in the North Atlantic and a lack of urgency from charterers putting pressure on owners. In South America, nearby dates were also under pressure, with one notable deal for an 81,000-dwt vessel at $15,000 per day plus a $500,000 ballast bonus for a trip from EC South America to the Singapore-Japan range. In Asia, the downward trend continued due to subdued cargo flows from both the NoPac and East Australia regions. This forced owners to lower their asking prices to secure employment, with NoPac rounds hovering around $11,000 and Indonesian round-trip prices averaging about $13,000.
Ultramax/Supramax
The Ultramax/Supramax sector was generally subdued, particularly in the Atlantic, likely due to the summer holiday season. The US Gulf remained positional, although sentiment improved slightly towards the end of the week, with a 61,000-dwt vessel securing a trip from Houston to Turkey at $21,000. In the South Atlantic, a growing disparity between owner and charterer expectations was noted, with a 63,000-dwt vessel fixed from Santos to Chittagong at $14,500 plus a $450,000 ballast bonus.
Asia presented a slightly stronger picture, though with a clear north/south divide in demand. An open 61,000-dwt vessel in Lumut was fixed for a trip via Indonesia to Vietnam at $14,000. The Indian Ocean saw some positional activity, with a 63,000-dwt vessel fixed from Port Elizabeth to China at $16,000 plus a $600,000 ballast bonus. Period activity remained sparse, although a 61,000-dwt vessel open in Barranquilla was heard to have been fixed for a minimum of 5 months at around $16,000.
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Source: Baltic Exchange
