Baltic Exchange: Dry Bulk Report – Week 40

Capesize

The Capesize market endured a challenging week, marked by a steady decline in rates and a sharp deterioration in sentiment midweek. The BCI 5TC fell from just above US$29 000 on Monday to US$22 595 by week’s end, pressured by unconfirmed reports that China’s state-run buyer CMRG had suspended BHP iron ore purchases. While BHP shipments to China have continued, the rumours amplified bearish sentiment at a time when Golden Week was already expected to dampen activity.

In the Pacific, C5 offers slid from above US$11.00 to below US$9.00 before finding some stability towards the week’s close. The Atlantic proved mixed – fresh demand emerged, but fixtures on both Transatlantic and Fronthaul routes were generally concluded at softer levels, though firmer bids later suggested some stability. From South Brazil and West Africa, C3 levels eased into the low US$23s, reflecting muted enquiry and cautious forward sentiment. By week’s end, a modest rebound in FFAs hinted that downside momentum may be slowing, with the potential for a floor forming.

Panamax

A compelling week for the Panamax market, with limited action in the Atlantic. The North saw steady, if not spectacular, demand from the North Americas, but this failed to inject any momentum into an ailing market. Asia was blighted by Golden Week and other Asian holidays, and despite some steady demand ex Australia and NoPac all week, this failed to make any profound impact and the market drifted.

Fronthaul highlights included mid-week reports of an 83 000-dwt delivery Spain fixed for a trip via US East Coast redelivery India at US$25 000, whilst in the south an 82 000-dwt delivery EC India agreed a rate of US$17 500 for a trip via EC South America back to the Far East. In Asia, reports of US$15 000 being achieved a few times for NoPac and Australia round trips on index-type tonnage delivery China/Japan. A week of limited period activity – unsurprising, given the overall sentiment in the market remains fragile.

Ultramax / Supramax

The Atlantic started the week on a relatively firm base; demand was seen from both the North and South Atlantic, although as the week progressed it became apparent that the positive momentum was positional. From the US Gulf, a 61 000-dwt was heard fixed for a Transatlantic run at US$32 500. Tonnage availability tightened from the Continent and healthy scrap demand saw a 58 000-dwt fixing in the upper US$20 000s for Continent to the East Mediterranean.

From Asia, it was a subdued week – with the Chinese Golden Week holiday, demand eased and negative sentiment crept in. From the south, a 61 000-dwt was fixed delivery Koh Sichang trip via Indonesia redelivery China at US$11 500, whilst a 57 000-dwt fixed delivery Singapore trip via Indonesia redelivery Bangladesh in the mid US$14 000s. The Indian Ocean saw limited activity, a 57 000-dwt fixing a trip delivery Salalah redelivery WC India in the low US$16 000s. Period action again was limited, although a 60 000-dwt was heard fixed delivery China for about 16.5 to 18.5 months trading at US$14 500.

Handysize

Overall, the market remained steady and positive throughout the week. In the Continent and Mediterranean, sentiment stayed firm, supported by consistent demand and resulting in firmer rates. For instance, a 35 000-dwt was fixed from Antwerp via the Baltic to EC South America with fertilisers at around US$16 000.

In the South Atlantic and US Gulf, fundamentals held stable with modest upward movement, keeping the market supported. Reported activity included a 34 000-dwt fixed from Rio Grande via Santos to Morocco at US$22 000, and a 40 000-dwt fixed delivery SW Pass for an inter-Caribbean trip at US$25 000. In Asia, activity was muted with the start of China’s Golden Week, though rates held largely flat. A 40 000-dwt was reported fixed from Kwinana via West Australia to the Philippines at US$18 000.

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