Steady Enquiries And Rates: A Capesize Market Overview



On the C5 front, we see a reasonable volume of enquires albeit a tick lower than last week from miners, operators, and tenders primarily for first half of June dates. Operators adopted a more wait and see approach for second half of June C5 forward buying. We continue to see a steady inflow and substantial volumes out of East Australia for full June dates while enquiries for other Pacific business is slightly dampened. Volumes out of South Africa have held up with enquiries from operators and tender as well for primarily early to mid June dates. On C3 ex Brazil to China, we see enquiries from miners and operators centered on second half of June dates. Some operators have started looking at forward July dates as well. Far East and ballasting spot tonnage seem to be relatively moderate. On C5, we see fixtures concluding at low to mid USD 10 pmt levels. On C3, fixtures concluded at low to mid USD 25 pmt levels.


This week in the Panamax market saw a bullish trend with the count of vessels in the South Atlantic rising to 420, a development historically followed by significant market rallies. South American rates picked up for late June arrivals, supported by strong FFA figures, while the trans-Atlantic market weakened due to a lack of cargo. In Asia, rates improved for longer routes due to steady business from Australia. Despite a slow start in the North Atlantic post-holidays, ECSA showed resilience with stable volumes. Overall, the market sentiment is firm with expectations of higher averages in Q3.


The Atlantic market spreads negative trends in most segments and areas. The trans-Atlantic continues to need more fresh volume, with rates falling sharply for vessels opening the North Continent, Mediterranean, and USG. ECSA saw some resistance support with the volume of fixtures for both trips East and Atlantic. However, some sources suggest that charts are giving bids substantially lower than the last done. Supramax fixing at USD 22,000 pd delivery Brazil for TCT with sugar to East Mediterranean. Japanese Ultramax 63’ dwt was rumored fixed at USD 18,000 pd + 800,000 GBB for a trip with sugar to Singapore-Japan range.

On the other hand, Asian markets hold a positive trend, with rates higher than in the Atlantic. Ultramax 63’ dwt with delivery Indonesia fixed at USD 25,000 pd for a trip via Indonesia SE Asia, while Supramax owners asking USD 20,000 on similar run. In general, we see health fixing activity with good cargo flow. Nopac and Ausie trop pay high USD 10,000, and some achieve as much as USD 18,000-19,000. Indexes falling consecutively from last week, bringing today BSI (S10TC) USD 15,076.

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Source: Fearnpulse