- Capesize rates improved with increased activity, closing at $23,697. The Pacific market remained strong, while the South Atlantic saw firm demand and limited tonnage.
- The Panamax market surged midweek, driven by strong demand in the Atlantic and supported by FFA activity, with long-term contracts closing at higher rates.
- Ultramax/Supramax saw strength in Asia, while the Atlantic remained mixed. The U.S. Gulf was stable, and South America and Europe showed rate improvements.
Capesize rates strengthened with increased Pacific activity and firm South Atlantic demand. Panamax saw a sharp mid-week rise, fueled by strong Atlantic cargo flow and FFA support. Ultramax/Supramax gained in Asia but had mixed performance in the Atlantic. Handysize markets remained stable in Europe and Asia, while the South Atlantic and U.S. Gulf lagged.
Capesize Market: A Week of Gradual Strengthening
The Capesize segment experienced a week of steady improvement, supported by tightening tonnage and increasing demand. The BCI 5TC index rose from $20,544 at the start of the week to $23,697 before a slight correction.
In the Pacific, demand from major mining companies, rising coal shipments, and consistent operator-controlled cargoes drove rates higher. The C5 route peaked at $11.58 before settling at $10.665. The South Atlantic saw a firm market, with C3 rates climbing from $22.50 to around $25 for mid-April loadings, supported by a limited supply of ballasting vessels.
The North Atlantic remained quiet, with few fresh cargoes and limited fixing activity. However, a few notable fixtures, including a transatlantic and a Fronthaul voyage at approximately $43,000 for 75 days, hinted at potential rate strength, though market participants remained cautious about their sustainability.
Panamax Market: A Midweek Surge in Rates
The Panamax segment witnessed a sharp midweek surge, particularly in the Atlantic market, driven by high demand for both grains and minerals. A tight tonnage list and market uncertainty from USTR developments contributed to the rate spike.
East Coast South America saw intense fixing activity, which in turn provided additional support to the Pacific market. Despite an initially slow start, the Pacific benefited from firm demand from North Pacific and Australian routes, leading to improved rates.
The period market also strengthened, with multiple deals closing at higher levels. A Japanese-built 82,000-dwt vessel secured a year-long contract at $15,500 per day with delivery in Japan. While market activity slowed toward the end of the week, sentiment remained in favor of vessel owners.
Ultramax/Supramax Market: Strength in Asia, Mixed Sentiment in the Atlantic
The Ultramax and Supramax segments saw a positive week, with Asia performing strongly, while the Atlantic market showed mixed trends. Uncertainty surrounding tariffs led to a cautious approach in some regions.
The U.S. Gulf market remained largely stable, with a 63,000-dwt vessel securing a trip from the U.S. Gulf to India with pet coke at $17,000. In South America, a 61,000-dwt vessel fixed a Santos-to-Bangladesh-China route at an upper $12,000 rate plus a ballast bonus exceeding $200,000.
Europe experienced a positional market, with a 57,000-dwt vessel fixing a trip from Amsterdam via the Continent to the Far East in the mid-teens. In Asia, rates strengthened as the week progressed, with a 63,000-dwt vessel fixing from Cigading via Kalimantan to West Coast India at $18,000. The backhaul market also saw activity, with a 63,000-dwt vessel securing a China-to-West Africa trip at $13,000.
The Indian Ocean remained subdued, though a 61,000-dwt vessel secured a fixture from Tuticorin via South Africa to China at $10,500.
Handysize Market: A Mixed Performance Across Regions
The Handysize segment displayed a varied performance, with minor fluctuations across different regions. The Continent and Mediterranean markets remained positive, with rates slightly surpassing previous levels. A 39,000-dwt vessel fixed a trip from Skaw to Morocco at $14,000.
In contrast, the South Atlantic and U.S. Gulf regions faced challenges due to increasing vessel supply and limited cargo availability. A 33,000-dwt vessel open in Tema secured a fixture from Fazendinha to Italy with grains at $10,500.
The Asian market remained stable, with a balanced supply-demand dynamic, particularly in Southeast Asia and the North Pacific. Notable fixtures included a 39,000-dwt vessel securing a trip from Guayaquil to Japan via Vancouver at $11,500, carrying grains.
As the week concluded, the Handysize sector showed stability in certain regions while others continued to face downward pressure.
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Source: Baltic Exchange
