The dry bulk shipping market is seeing a reasonable level of inquiries from miners and operators for early June 2025 dates. This indicates a baseline of demand and interest in securing vessels for upcoming cargo movements, reports Fearnleys.
Capesize
In the dry bulk market, specifically for Capesize vessels, inquiries for C3 routes (Brazil to Far East) and West Africa to Far East are predominantly for second-half June dates.
Key Observations:
- Tonnage Tightening: Spot tonnage availability in the Far East appears to be on the tighter side, and the number of ballasting vessels (those sailing empty to a loading port) for June dates is gradually decreasing. This thinning of available vessels suggests a potential firming of rates.
- Recent Fixtures:
- Fixtures for C5 routes (Brazil to China) were concluded in the low USD 8 per metric ton (pmt) levels.
- For mid-June dates from Brazil, fixtures were seen around the mid-USD 18 pmt levels.
This indicates a divergence in rates depending on the specific route and timing within the Brazil market, with the longer-haul Brazil to Far East (C3) potentially commanding higher rates for mid-June dates due to tightening tonnage.
Panamax
The Panamax dry bulk market experienced a continued softening this week, primarily due to subdued activity in the Atlantic basin. An increasing supply of available vessels in the Atlantic has exerted downward pressure on transatlantic rates. While fronthaul trades originating from North Coast South America (NCSA) offered some limited resilience, a scarcity of fresh cargo inquiries broadly maintained bearish fundamentals for the region.
In contrast, the Pacific market presented a more optimistic picture. This positive sentiment was driven by stronger activity stemming from East Australia and the North Pacific (NoPac), coupled with an increasingly balanced supply of tonnage in the region.
Supramax
The Supramax/Ultramax dry bulk market commenced the week with limited fresh activity across most regions, reflecting a generally quieter sentiment.
Atlantic Basin:
- US Gulf: Maintained a firm tone, though there are indications that it might be nearing a peak.
- Continent-Mediterranean: Remained under slight downward pressure, with rates struggling to find fresh impetus.
- South Atlantic: Held steady in a balanced state, with activity continuing at a steady pace and tonnage counts remaining stable.
Pacific Basin:
- The Pacific showed a firmer outlook, primarily supported by a tightening tonnage list in Southeast Asia.
- Modest improvements in demand were observed further north in the Pacific.
Indian Ocean and Middle East:
- These regions were more subdued, with activity levels stable but lacking significant upward momentum.
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Source: Fearnleys
