The Capesize dry bulk market showed significant momentum this week, recovering from a slow start primarily attributed to Monday’s UK bank holiday, reports Baltic Exchange.
Capesize
The Capesize market experienced a significant surge in strength this week, particularly driven by activity in the Atlantic basin.
The South Brazil to China market (C3) was the primary catalyst, with rates steadily climbing past $20.00 mid-week and ultimately reaching $22.00. This robust performance was attributed to firm cargo demand and a slightly reduced list of available ballasting vessels.
Towards the end of the week, the North Atlantic also showed improvement, especially on the Fronthaul route. A notable fixture from East Coast Canada was reported in the high $30,000s. Growing confidence in the Transatlantic market was also observed, with reports of firmer fixtures contributing to the positive sentiment.
Overall, the BCI 5TC, a composite average for Capesize time charter rates, gained substantial ground. It rose by $3,880 from Tuesday to Friday, closing the week at $18,885. This indicates a strong week for Capesize owners, rebounding from a slow start earlier in the period.
Panamax
The Panamax market experienced another challenging week, with the recent softening trend persisting and little momentum from the start of the week, further disrupted by numerous holidays.
In the Atlantic, the market was predominantly driven by fronthaul activity, with a steady flow of cargo from North Coast South America. A notable fixture saw an 82,000-dwt vessel delivering in Gibraltar achieving $17,750 for redelivery Singapore-Japan. Trans-Atlantic routes, however, offered little activity, and rates drifted as the tonnage count remained steady rather than excessive, indicating an adequate supply of vessels to meet limited demand.
The Asian market lacked any supportive factors. Even coal exports from Indonesia failed to materialize as expected, leading many older and smaller ships to heavily discount their rates to secure employment. Some vessels were reportedly fixing as low as $3,000 for a 1999-built 73,000-dwt for a trip via Indonesia with redelivery in China. The longer round voyages in Asia averaged around the $9,000 mark throughout the week.
Period reporting was limited, but there were rumors of some index-linked deals. The highlight was an 82,000-dwt vessel delivering in China, achieving 102% of the Baltic Panamax Index (BPI) for one year of trading, suggesting some confidence in the future market despite the current spot weakness.
Supramax
The Supramax/Ultramax sector faced a rather challenging week, with rates experiencing continued downward pressure in both the Atlantic and Pacific regions.
In the Atlantic:
- The South Atlantic and US Gulf continued to struggle due to a lack of fresh inquiries and an expanding list of available tonnage. A specific fixture reported was a 57,000-dwt vessel fixed for delivery Santos with redelivery China at $12,250 plus $225,000 GBB (Gross Ballast Bonus).
- Across the Continent and Mediterranean, the overall sentiment was largely positional, meaning rates hovered around the last reported levels due to an absence of strong directional movement. A fixture example included a 64,000-dwt vessel fixed for delivery passing Gibraltar via Morocco via the Continent/Gibraltar/Hamburg (COGH) to redelivery India with fertilizers at $13,250.
Similarly, the Asian market saw limited activity, with slight declines noted in both the North Pacific (NOPAC) and Southeast Asia.
- A 61,000-dwt vessel, open in Rizhao, was reportedly fixed for a trip via North China to redelivery Southeast Asia at $11,000.
In the period market, activity remained limited. However, a notable fixture was a 63,000-dwt vessel, open in Zhoushan, fixed for one year at 100% BSI63 index linked, indicating a longer-term deal tied to the Baltic Supramax Index (BSI).
Did you subscribe to our Daily newsletter?
It’s Free! Click here to Subscribe!
Source: Baltic Exchange
