The global dry bulk shipping market, comprising Capesize, Panamax, and Supramax vessels, displays varying trends in the first trading week of the new year. This report outlines each segment’s market dynamics, key routes, and rate fluctuations.
Capesize Market
Overview: The Capesize market witnesses diverse activity with fresh enquiries on different routes. Notably, C5 experiences interest for mid-late January dates, while the East Australia coal and Pacific front sees dampened volume. Healthy volumes are noted in C3 ex Brazil to China and West Africa for late January to February dates. Rate Snapshot: C5 fixtures conclude at low to mid-USD 10 pmt levels, and C3 witnesses limited fixtures at USD 29 pmt levels for the second half of January. Market participants adopt a cautious stance, contributing to resistance between bids and offers.
Panamax Market
Market Trends: The Panamax market initiates the year with a downward trend, particularly in the Atlantic, driven by tonnage oversupply. Fleet distribution favours the West of Suez, reaching a historic low. February anticipates a rebound in South American grain exports. Both basins display muted activity, with cautious sentiments prevailing after the holiday lull. Rate Movements: Rates experience a decline in the Transatlantic RV, TCE Cont/Far East, TCE Far East/Cont, and TCE Far East RV, reflecting the oversupply challenges. Market participants await direction as the industry navigates through uncertainties.
Supramax Market
Current Dynamics: The Supramax market exhibits a quiet start to the year, marked by a soft tone and notable impact on the USG. Oversupply in the Atlantic, slow Pacific demand, and geopolitical uncertainties in the Red Sea and Black Sea contribute to the market’s uncertainty. Weak demand in USG and South Atlantic pressures rates, leading to a drop in Baltic BSI routes on S1 and S4. Rate Trends: Rates decline across Atlantic RV, Pacific RV, and TCE Cont/Far East. Owners accept lower rates in response to weak demand and a slow start in the Pacific, with Inter-Pacific trading hovering around USD 10,000 pd.
Dry Bulk Rates Overview
Market Overview: Capesize TCE Cont/Far East rates stand at $38,125, showing a daily change of $312. Panamax rates, including Transatlantic RV and TCE Far East/Cont, experience declines, reflecting the challenges in the Atlantic. Supramax rates witness decreases in Atlantic RV and TCE Cont/Far East. The Baltic Dry Index (BDI) stands at $2,091, reflecting a minor decrease of $2.
One-Year Time Charter Rates (1 Year T/C): The 1-year time charter rates for various vessel types, including Newcastlemax, Kamsarmax, Ultramax, Capesize, Panamax, and Supramax, showcase diverse trends with both increases and stability, providing insights into the future expectations for these vessel categories.
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Source: Fearnleys
