The Capesize market began the week on a soft note before gaining momentum midweek, though this improvement tapered off amid lighter activity in both the Atlantic and Pacific.
Capesize
The Capesize market experienced a volatile week, starting soft before gaining momentum midweek, only to see activity taper off later.
- Rate Movement: Early pressure on rates was countered by increased cargo inquiry and firmer fixing on key routes, specifically C3 (Brazil/China) and C5 (Western Australia/China). This helped stabilize sentiment and lift overall levels.
- Pacific Activity: Steady demand from miners supported a gradual improvement in Pacific rates.
- Atlantic Activity: The Atlantic basin saw tighter tonnage lists, which bolstered both Transatlantic runs and fronthaul employment.
- Market Confidence: Sentiment was further supported by news of a one-year trade truce between the U.S. and China.
Panamax
The Panamax market endured another week of correction, with sentiment softening as vessel supply continued to outpace demand in both basins.
- Atlantic Performance: The South Atlantic showed relative stability due to steady activity from East Coast South America and South Africa. However, the North Atlantic lost ground as trans-Atlantic demand decreased and tonnage availability grew. Fronthaul demand offered only limited support, leading to a more cautious overall tone.
- Pacific Performance: Charterers maintained pressure on rates despite a brief midweek uptick in activity. Owners showed resistance on short trips, hoping for a market rebound. While coal demand provided some seasonal support, the general trend was downward due to growing vessel lists and weak sentiment.
Supramax
The Supramax market presented a positional divide, with weak sentiment persisting in Asia while the Atlantic showed hints of recovery.
- Asia: Sentiment remained weak due to limited inquiry and an ample supply of prompt tonnage, keeping rates under pressure. Limited fixtures surfaced, contributing to a cautious overall tone.
- Atlantic: Signs of improvement emerged, particularly with stronger activity and discussions from the US Gulf for Transatlantic (TA) runs, hinting at a possible turnaround. Owners in this region appeared slightly more optimistic.
- Overall: Despite the optimism in the US Gulf, charterers generally held the upper hand. The South Atlantic and Mediterranean basins remained subdued with little fresh inquiry.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Fearnleys
