Baltic Exchange: Dry Bulk Report - Week 36

Capesize

The Capesize market saw a strong start to the week, particularly in the Pacific, where two of the three major miners became active, leading to a steady rise in the C5 route. However, as the week progressed, Pacific activity began to slow, with the C5 index dipping midweek to US$11.135, having started the week at US$11.785. A slight recovery followed as Thursday saw increased cargo enquiry and improved rates, although concerns lingered over Typhoon Yagi as it approached Southern China. In the Atlantic, activity was more subdued on C3, with limited fixtures and initially a persistent gap between bids and offers, although as the week progressed the gap narrowed but there was no significant upward movement. Fronthaul routes out of the North Atlantic provided some support and the market maintained positive sentiment, particularly on the transatlantic route, although overall fixture volumes were low. Overall, the market showed resilience, ending the week on a stronger note, with the BCI 5TC closing at US$27 832, up from its opening level at the start of the week of US$26 935.

Panamax

Another softer week for the Panamax market as owners continued to feel the recent pressure, particularly in the Atlantic basin where owners’ resistance was hard to find with early tonnage and ballaster tonnage continuing to discount. The P1A route hovered in the US$8000s all week, although this was being challenged with APS load port deals equating to a lot less by comparison. Activity ex EC South America was flat for index arrival dates, with earlier date arrivals heavily discounted by the armada of ballasters. Asia returned good demand overall, rates appeared to have found a floor mid-week with owner’s resistance appearing more substantiated. Rates of low US$14 000s were seen on NoPac trips on inferior to index types, whilst much of the Indonesia demand continued to be absorbed by smaller/older tonnage rates improved into five-figure levels. Period activity was minimal, although reports emerged of an 81 000-dwt delivery China achieving US$14 900 basis 5/7 months.

Ultramax/Supramax

A rather mixed affair for the sector as the summertime lull still impacted the Atlantic but a slightly more positive feel from the Asian arena. The North and South Atlantic suffered from a lack of fresh enquiry, putting downward pressure on an already subdued market. An Ultramax was heard fixed basis delivery EC South America for a fronthaul trip at US$16 000 plus US$600 000 ballast bonus. Elsewhere, a 56 000-dwt fixed delivery Mediterranean for a run to West Africa at around US$11 000.

Asia, on the other hand, seemed a bit more buoyant, although as the week ended some said prompt tonnage availability was increasing. A 58 000-dwt fixing delivery China for a trip to West Africa at US$14 500 for the first 60 days and US$16 000 thereafter. From the south, a 60 000-dwt fixed delivery Koh Sichang trip via Indonesia redelivery China at US$14 750. The Indian Ocean saw a little action, with a 60 600 dwt fixing delivery South Africa trip Pakistan at US$18 500 plus US$185 000 ballast bonus. The period market remained rather muted, with a 61 000 dwt open China fixing 12 – 14 months trading at US$15 500.

Handysize

The Handy sector saw minimal visible activity across both basins this week. In the Continent and Mediterranean, the tonnage list remains relatively long for September dates, while fresh demand appears quite thin. A 34 000 dwt fixed delivery Skaw trip with grain via Baltic to Luanda at US$12 500. In the South Atlantic, negative sentiment persisted throughout the week, with only a few new inquiries but no significant actions taken. Momentum in the US Gulf was also shifting slightly negative this week, with very few new enquiries and an increasing tonnage list. A 38 000 dwt open San Pedro De Macoris prompt fixed for Barranquilla to Poland with coal at around US$17 500. Little new information emerged from the Asian market, although some sources noted an increase in available tonnage, anticipating further market softening.

Information originally sourced from the Baltic Exchange

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