The dry bulk shipping market experienced a mixed week. While the Capesize sector saw some weakness, the Panamax market, particularly in the Atlantic, showed significant strength. The Ultramax and Supramax sectors also had a solid week despite the summer vacation period.
Capesize
The Capesize market was generally weaker this week, with the BCI 5TC index dropping by over $4,000 before a small late-week recovery. The Pacific market struggled due to a lack of consistent activity from miners, which pushed the C5 rate below $9.00. However, the week ended on a slightly firmer note as two miners became active, with a fixture reported at $9.50. In South Brazil and West Africa to China markets, reduced volumes for early September and an increase in ballasting vessels put pressure on sentiment. Despite this, bids for late September around $23.50 lent a more positive tone. The North Atlantic remained tight, though fixtures were generally softer than the index.
Panamax
The primary excitement in the Panamax market came from the Atlantic. A shortage of available vessels in the North Atlantic led to a surge in rates, driven by robust demand for both fronthaul and transatlantic voyages. A notable fronthaul fixture from the US East Coast to India was reported at $30,000, while a transatlantic voyage reached a timecharter equivalent of nearly $17,000.
In contrast, the Pacific market was less supported, with rates declining as the number of available ships began to outweigh demand from the North Pacific or Australia. However, steady demand from Indonesia kept rates stable around the $14,000 mark. Several period fixtures were also concluded, reflecting an improving outlook for the sector.
Ultramax/Supramax
Despite the summer holiday period, the Ultramax and Supramax sectors had a solid week. The US Gulf saw strong demand for transatlantic runs, with an Ultramax heard fixed at around $30,000. The Continent and West Mediterranean also saw more cargo activity. The South Atlantic market was more stable with positive sentiment. In Asia, sustained demand helped owner expectations.
An Ultramax from North China was fixed for a North Pacific round trip at $16,750, and a Supramax was fixed from North China to West Africa at $16,000. Further south, a vessel from Singapore was fixed for a trip to Indonesia and redelivery to China at $19,000. The Indian Ocean market was lackluster.
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Source: Baltic Exchange
