Declining Rates Across Bulk Carrier Markets As Demand Remains Weak

The bulk carrier markets saw a decline across various segments this week, with Capesize, Panamax, Ultramax/Supramax, and Handysize all experiencing weaker rates due to reduced demand and increasing tonnage. Cargo activity remained limited, and as the Chinese holiday approached, sentiment remained bleak, making it difficult for rates to recover.

Capesize Market Struggles with Falling Rates

The Capesize market faced a challenging week, marked by steadily declining rates. The BCI 5TC dropped by $2,852, closing at $8,156, as miner activity in the Pacific remained low. In addition, the South Atlantic experienced a brief rise in activity but saw a sharp decline by the end of the week.

• Pacific market: Miner activity remained sparse, with fixtures dropping from $6.00 to $5.85.
• South Atlantic: Fresh inquiries lifted rates temporarily, but they fell sharply due to increasing ballast tonnage.

Panamax Market Slides Amid High Tonnage

Panamax rates continued to decline with no signs of recovery. Despite some activity early in the week, especially in the Pacific, the market slowed down due to the upcoming Asian holidays and an oversupply of tonnage. The Atlantic market struggled with an imbalance between demand and available tonnage, leading to very low trades.

• Asia: Rates for North Pacific and Australian round trips dropped to the low $7,000s and $4,000-$5,000, respectively.
• South America to Far East: Large spread between voyage and time charter rates, with low spot prices.

Ultramax/Supramax Experiences a Poor Week

The Ultramax/Supramax market saw continued weakness, driven by uncertainty and lack of fresh cargo. The Atlantic market remained subdued, and rates for US Gulf and West Africa to China trades were low. In Asia, prompt tonnage build-up led to further rate declines, with limited options in the Indian Ocean.

• US Gulf: A 61,000-dwt vessel fixed at $16,000 for petcoke to China.
• Asia: A 56,000-dwt fixed a trip from Indonesia to China at $3,000.

Handysize Market Remains Soft with Limited Activity

The Handysize sector experienced minimal visible activity this week, with rates continuing to fall in the Mediterranean and U.S. Gulf. The increase in tonnage in Asia further pressured rates, leading to soft sentiment across all regions.

• Mediterranean & U.S. Gulf: Rates remained subdued, with limited fixture activity.
• Asia: Increasing tonnage caused downward pressure on rates, with brokers anticipating further softening.