Capesize and Panamax markets face tonnage oversupply and limited demand, with some improvement expected in October. Supramax remains quiet with low cargo volumes and below last done levels.
Capesize
On the West Australia front, we see active participation from miners, operators and some tenders primarily for the second half of September dates. Volumes out of East Australia have decreased slightly compared to last for late September dates. On C3 ex Brazil to China, we see limited enquiries for late September dates with most players interested in early October dates. On the West Africa front, activity level is relatively low. Far East spot tonnage is relatively abundant while ballasting tonnage is mainly for second half of September and early October. On C5, fixtures concluded at mid to high USD 11 pmt levels at start of the week but sold down to low USD 11 pmt levels by mid-week. On C3, we see bid ideas at sub USD 27 pmt levels and offers in the USD 28 pmt levels for October dates.
Panamax
This week in the Panamax market, there are signs of potential improvement with the grain season underway, leading to an increasing number of vessels heading to the US, which could serve as a bullish trigger. However, the BPI5TC index remains below the Handy7TC and BSI58 indices, indicating a slower market rebound. In the Atlantic, the North continues to suffer from an oversupply of tonnage and minimal fresh demand, particularly for transatlantic routes, while fronthaul routes from the US Gulf show better prospects for October dates. In South America, September volumes are under pressure, but the outlook for October remains uncertain. In Asia, while coal demand remains low and the Indian monsoon season is expected to last longer, mineral demand from Australia and Indonesia has slightly improved market sentiment. Despite this, charterers continue to hold the upper hand, with the overall market still weak due to tonnage oversupply and slow demand growth.
Supramax
Market has been quiet past week as cargo volumes were very limited. Towards the end of monsoon season, we will see more cargoes in the market in the Indian ocean region. There is a clear oversupply of tonnage across basins and cargoes are being covered well below last done levels. As for ECSA, couple’ fronthaul cargoes in the market. With a relatively slow start to the grain season, we see less cargoes coming out in the Mediterranean/Continent region as well. Meantime, there is healthy demand on the period side on the Supra/Ultra segment.
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Source: Fearnpulse
