The Capesize market displayed weakness this week, with the 5TC initially declining before recovering slightly towards the end of the week, reports Baltic Exchange.
Capesize Market
Despite initial signs of strength in the Pacific with healthy cargo flows and tightening tonnage early in the week, reported fixtures struggled to push rates higher. The C5 index remained relatively stable, hovering around the upper $6s and settling at $6,71 by the end of the week. In the Atlantic, the North experienced continued oversupply of tonnage, particularly on transatlantic routes.
Limited cargo availability on these routes led to steep declines in C8 rates, which fell to $4,257 by midweek. Fronthaul activity provided some support, keeping the C9 index steady at the low $ 25,000.
Panamax
Despite a volatile FFA market, the Panamax sector witnessed significant gains, driven by mixed but generally positive market signals.
While transatlantic volume remained thin, firmer rates on fronthaul trips positively impacted market sentiment. South America emerged as a key driver of market strength, with March arrival windows witnessing strong demand and higher rates compared to end-February arrivals.
These firmer rates in South America appeared to positively impact south positions in the Pacific basin, despite limited fresh demand from Indonesia and Australia. NoPac rates remained well-supported throughout the week, with a notable fixture of an 82,000-dwt vessel delivered in Japan for a NoPac round trip at $10,500 per day.
Supramax
Following the conclusion of the Lunar New Year holidays, the market witnessed a resurgence of upward momentum across most regions. In the Atlantic, positive signs emerged with a 63,000-dwt vessel fixed for a fronthaul in the mid $11,000s with a mid $100,000s ballast bonus.
Further south, a 58,000-dwt vessel was fixed for a trip from the SW Pass to Buenaventura at $13,100 per day. In Asia, activity significantly increased, contributing to higher rates. A 53,000-dwt vessel was fixed for a trip from North China to Bangladesh at $9,000 per day. Further south, a 55,000-dwt vessel was fixed for a trip from Singapore to China at $8,500 per day with an option for redelivery in Southeast Asia at $8,000 per day.
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Source: Baltic Exchange
