After a slow start, the market found midweek momentum before easing again, with Friday seeing limited activity across both basins and the week ending on a quieter note.
Capesize
Early softness gave way to improving sentiment from Wednesday onward as increased cargo demand and firmer fixtures on C3 and C5 helped reverse earlier declines. The Pacific saw steady miner activity and improving rates, while the Atlantic gained traction with stronger fronthaul and Transatlantic fixtures, highlighting tightening tonnage and a firmer market backdrop.
Adding to the positive tone, news of a one-year trade truce between the US and China, including a suspension of reciprocal shipping levies on vessels linked to the other, was received as a welcome development for the sector. The BCI 5TC began the week at $23,534, dipped to $23,089 on Tuesday, and recovered to close at $24,288, reflecting a modest rebound.
Panamax
A subdued week for the Panamax market despite relatively decent activity throughout on the shorter duration rounds, with activity remaining muted on fronthaul trips from both the South and North, leading to a slow drift in rates. An 82,000-dwt delivery Continent secured $27,000 for a trip via the US East Coast redelivery to India with coal, but activity was otherwise limited. The Pacific market also remained sluggish, with disappointing demand out of NoPac and Australia failing to support rates.
Over the course of the week, numbers for longer runs drifted lower, as seen when an 82,000-dwt delivery from South Korea fixed at $17,250 for an EC Australian round trip on Thursday, down from $18,500 for the same run and similar vessel type at the early part of the week. This highlights the gradual decline in rates. With limited support from the FFA market, period activity was unsurprisingly restricted, though there were reports of an 82,000-dwt delivery China fixing at $16,000 basis 5/7 months employment.
Ultramax/Supramax
The negative mode continued throughout most of the week, although as it came to a close, some felt that the US Gulf and Indian Ocean had bottomed out. In the Atlantic, the recent demand for scrap seemed to have eased, with a 63,000-dwt fixing delivery Ghent for a trip to Turkey at $24,000. Elsewhere, an ultramax was heard to have been fixed from Jorf Lasfar to India at around $22,000. From South Asia, downward pressure remained with a lack of fresh impetus, with a 61,000-dwt open South China fixing via Indonesia redelivery China at $14,250.
A slightly stronger note further north for NoPac business, with a 63,000-dwt fixing delivery North China trip via NoPac redelivery Bangladesh at $17,000. The Indian Ocean gained momentum, with an ultramax was rumoured fixed delivery to South Africa for a trip to China at $21,000 plus $210,000 ballast bonus. Period activity surfaced, with a 64,000-dwt newbuilding giving delivery ex yard in Japan for December dates was heard fixed for an index-based deal at 126% of BSI 58.
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Source: Baltic Exchange
