On the C5 front, we see enquiries for miners and operators for early November dates. Volumes out of East Australia remain flat from last week with a tick up in enquiries from others fronts of the pacific.
Capesize Market
The Capesize sector is experiencing flat volumes in one area but is seeing a reduction in available ships, suggesting a potential firming of rates.
- Pacific Activity: Enquiries are noted from miners and operators for early November dates on the C5 route (Western Australia/China). Volumes out of East Australia remain flat, though there is a small increase in enquiries from other areas of the Pacific.
- Atlantic Focus: For the C3 (Brazil/China) and West Africa routes, the focus is on mid and end November dates.
- Tonnage Supply: The number of ballasting ships is slowly decreasing, and spot tonnage out of the Far East is slightly tighter, which is partly attributed to cold weather affecting North China.
- Fixture Levels: Midweek saw C5 fixtures concluded in the mid-to-high USD 10 per metric tonne (pmt) range, while the C3 route was trading at low USD 24 pmt levels.
Panamax Market
The Panamax market presented a divided picture, with strength in the Pacific contrasting with uncertainty in the Atlantic.
- Pacific Momentum: Asian sentiment was firm, providing positive momentum driven by strong Indonesian demand and the emergence of fresh cargo requirements. The combination of increased demand and a tightening tonnage list forced charterers to “pay up,” pushing rates higher.
- Atlantic Mixed Direction: The Atlantic market lacked a clear direction. The North Atlantic held flat, supported by steady Transatlantic volumes that absorbed spot vessels.
- South Atlantic Lag: The East Coast South America (ECSA) market remained quiet and uninspiring, stalled by a wide bid-offer spread and minimal fixing activity.
Supramax Market
The overall Supramax market was subdued, with widespread pressure in the Atlantic and limited period activity, though Asia provided some positive counterbalance.
- Atlantic Pressure: The Atlantic remained largely under pressure. The US Gulf (USG) faced challenges due to ample prompt tonnage and softer demand. The South Atlantic also showed a lack of momentum.
- Continent-Mediterranean: This region showed mixed tones, with some fixing activity emanating from the East Mediterranean, but others felt that rate levels had already plateaued.
- Asian Support: Asia maintained a slightly firmer tone, supported by steady Indonesian (Indo) rounds and consistent demand from the North.
- Period Activity: Activity in the long-term period market remained slow, with very few deals reported during the week.
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Source: Fearnleys
