The Capesize market saw strong recovery, while Panamax and Handysize faced continued losses. Ultramax/Supramax had mixed results with improved US Gulf activity but limited options in the South Atlantic, reports Baltic Exchange.
Capesize
The Capesize market experienced a strong recovery this week after a mixed start partly due to a public holiday on Monday in the UK. In the Pacific, the week began with steady activity, but the market initially showed signs of weakening, with the C5 index slightly dipping to $10,985 on Tuesday. However, from Wednesday onward, the Pacific market surged as all three major miners returned, pushing the C5 index up consistently, reaching $11,635 by Thursday. However, the momentum eased slightly toward the end of the week. In the Atlantic, the market also strengthened throughout the week. Initial optimism was tempered by a softer transatlantic fixture, which led to a drop in the C8 index on Tuesday. However, as the week progressed, the C3 index showed consistent growth, fuelled by strong demand on the South Brazil and West Africa to China markets, ending at $28.00. Overall, the BCI 5TC index rose significantly, ending the week at $25,700.
Panamax
The Panamax market provided further losses this week and is showing little signs of abating. Despite a steady level of activity, this failed to stem the tide with both basins yielding substantial losses. The Atlantic saw rates erode for a further successive week, as pressure from the nearby and committed ships continued to underpin the market. Limited activity from East Coast South America, the primary focus being mid-September arrival with the APS load port rates now hovering around the mid $15,000 plus mid $500,000 mark, but with limited activity throughout the week. Asia witnessed similar falls as a lack of demand on the longer round trips remained the nemesis to an already weak market. There were reports midweek of an 82,000-dwt delivery from China achieving $10,250 for an Australian round trip, but activity remained light as rates drifted. Period activity remained muted but included reports of an 81,000-dwt delivery India achieving $15,400 for one-year employment.
Ultramax/Supramax
Generally the market has seen a mixed affair this week. There was increased activity from the US Gulf and rates had pushed up slightly but options for owners with vessels open from the South Atlantic remained rather limited. A 61,000-dwt open Houston fixed via US Gulf to Italy with Petcoke at $22,000. Across the Continent and Mediterranean, there was not much activity and sentiment remained fairly positional. Asia experienced a generally balanced week, despite spot orders having been covered and the cargo book getting shorter as owners are still being chased, which ultimately closed the spread. A 63,000-dwt open Qinzhou fixed for trip via Vietnam to Bangladesh with Clinker at $21,000. Period cover was short, with a 63,000-dwt open Japan fixing 6/9 months trading $17,850, while a 63,000-dwt open Dafeng placed on subjects for 4-6 months $17,850.
Handysize
It was a quite week for the Handy sector, with activity remaining slow across the Continent and the Mediterranean with sentiment appearing positional. A 33,000-dwt open Kaliningrad fixing inter-cont at $11,000. The US Gulf kept its positive pace and saw plenty of fixing activity being recorded across all sizes and tonnage started tightening up a touch. A 38,000-dwt open Philadelphia heard fixed for Savannah to Continent with wood pellets at $18,000. The South Atlantic remains soft despite some positional fixtures and limited positive signs in sight. In the Pacific market there were little to no changes in the market fundamentals. Overall, rates appeared rather stable this week, although the market felt more supported. On the period market, a 34,000-dwt open Vecaruz placed on subjects for short period at $15,100.
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Source: Baltic Exchange
