The dry bulk shipping market segments reveal a mixed but generally softening trend, with Panamax and Supramax facing downward pressure, while Capesize shows healthy demand for future dates.
Capesize Market
The Capesize segment demonstrates strong forward demand but slow spot activity this week:
- Pacific Activity: There is a tick up in enquiries across the Pacific, with focus on early/mid November dates for the C5 route (West Australia to China). However, volumes out of East Australia remain flat. Spot tonnage is accumulating in the Far East due to overall lower Pacific fixing volumes.
- Brazil/West Africa Focus: The focus for the C3 route (Brazil to China) and West Africa is on end-of-November and early-December dates.
- Tonnage and Rates: Ballasting tonnage is heavily weighted toward the second half of November. Fixtures for C5 were concluded at low-mid USD 9 per metric ton (pmt) levels by midweek, while C3 traded at mid USD 22 pmt levels.
Panamax Market
The Panamax market has eased and shows signs of topping out after recent highs:
- Atlantic Basin: The North Atlantic and U.S. Gulf regions lost steam as fresh inquiry diminished and tonnage lists grew, giving charterers firm control. Fronthaul demand (trips from the Atlantic/Continent to the Far East) was patchy, with many players waiting for the outcome of the upcoming U.S.–China meeting before committing to fixtures. South America held steady but failed to gain momentum despite late November interest.
- Pacific Basin: Activity was reasonable midweek, but rates edged lower as owners softened their ideas against a growing list of available vessels and limited fresh cargo supply.
- Sentiment: Overall sentiment has turned cautious, with the market looking due for a correction.
Supramax
Both the Supramax and Handymax segments have continued to soften across all major basins:
- Supramax Sentiment: Sentiment remains weak across both the Atlantic and Pacific basins. The US Gulf is leading the decline due to limited fresh enquiry and a growing list of prompt tonnage. The Continent–Mediterranean and South Atlantic also saw subdued activity.
- Asia Support: Asia offered little support despite some demand coming from the North Pacific and Australia.
- Handymax Activity: Trading was similarly lackluster, with Greek holidays slowing European activity. The US Gulf and South America lost ground on thin demand.
- Period Activity: Period activity remains quiet with very few fixtures reported, reflecting the weak short-term market outlook.
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Source: Fearnleys
