Capesize
We see consistent volumes on C5, East Australia, and the Pacific, with enquiries from miners, operators, and several tenders this week for mid December dates. On West Africa and C3 ex Brazil to China, we see healthy volumes for the second half of December and several enquiries for early January. Volume remains moderate on front haul, Indian, and South African business. All in all, market sentiment is rising as we move into December. Far East tonnage is moderately tight. Ballaster count is heavily weighted on end December and early January with a few operators willing to perform swaps for mid December dates. On C5, rates strengthened tremendously compared to last week, concluding at high USD 11 to low USD 12 pmt levels. On C3, we see an uptick of rates with fixtures concluding in the mid USD 28 to low USD 29 pmt range for mid December. On early January stems, we see offers at mid USD 25 pmt to USD 26 pmt levels while awaiting charterers bids. One known fixture of a 203k dwt 2013-build non scrubber for 1 year at USD 19,500 per day.
Panamax
This week’s Panamax market shows a high number of laden vessels, particularly in the Indian Ocean and the Pacific, suggesting strong market fundamentals. The Atlantic market has seen a notable drop in vessels, but prices have doubled since November. The market is cautious with limited activity, but fundamentals remain unchanged, supporting further price rises. The physical market remains firm, with major routes trading around the low-mid 16k level and the Atlantic market attracting vessels from the Pacific. Period market rates are in the mid 15k-16k range, bolstered by the strong FFA and Capesize markets.
Supramax
Laden vessels in the Pacific are at all-time highs, and laden vessels in the Indian Ocean are slightly down from all-time highs. The market has tightened considerably in the Atlantic, where like in the other segments earnings is comparable to the heights of 2021 and 2022. This ongoing late-year rally strongly suggest fundamentals will be firm far into next year in our opinion, as it is unusual to see a rally at this time of year. The forward curve is likely to continue being bid in the coming months.
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Source : Fearn pulse
