In the Pacific basin, there’s a reasonable level of enquiries from both miners and operators for early-to-mid June dates. This suggests some underlying activity and a desire to secure tonnage for upcoming shipments in this key region, reports Fearnleys.
Capesize
The Capesize dry bulk market in the Far East is currently experiencing a gradual tightening of spot tonnage. This is largely due to a slow thinning out of ballasting vessels (ships traveling empty to pick up cargo) for the second half of June and July.
This tightening supply dynamic has led to fixtures being concluded in the low-to-mid USD 8 per metric ton (pmt) levels by mid-week for general Far East routes. For Brazil departures specifically for mid-June dates, fixtures were observed in the low USD 19 pmt levels. This indicates a nuanced market, with longer-haul routes from Brazil commanding higher rates.
Panamax
The Panamax dry bulk market experienced a challenging week, with a persistent bearish sentiment dominating both the Atlantic and Pacific basins. This weakness is primarily attributed to a combination of long tonnage lists and subdued demand.
In the Atlantic basin, activity remained sluggish, particularly in the aftermath of the recent UK and US holidays. This led to softer rates, with charterers firmly in control. Fresh cargo inquiries were scarce, and fixtures were frequently concluded at levels below previous benchmarks, indicating a buyers’ market.
The Pacific basin mirrored this downward trend. A steady stream of available vessels, coupled with a lack of new inquiries, put increasing pressure on owners to accept lower rates. This was particularly evident on Indonesian coal runs and Australian trips.
Supramax
The Supramax/Ultramax dry bulk market started the week on a soft note, with weak sentiment persisting across both the Atlantic and Asian basins. This subdued atmosphere continued through to the end of the week, as reflected in the overall market performance.
In the Atlantic, limited fresh inquiries and a distinct lack of support from the southern regions continued to put downward pressure on rates. While the US Gulf remained relatively steady, it lacked any significant momentum to influence the broader market.
The Asian arena also stayed under pressure, especially in the south. Here, an oversupply of available tonnage combined with scarce cargo availability kept the market subdued.
Did you subscribe to our Daily newsletter?
It’s Free! Click here to Subscribe!
Source: Fearnleys
