Dry bulk shipping market faced declines and fluctuations

Capesize

Throughout the week, the capesize market experienced a downward trend, with the BCI 5TC dropping to US$34 854 by the end, reflecting a substantial decline. The Pacific market remained sluggish, marked by a persistent lack of major players on C5, contributing to a negative sentiment. South Brazil and West Africa to the Far East sustained pressure throughout the week as the bid-to-offer gap widened, compelling owners to pursue aggressively. Despite earlier optimism, the North Atlantic did not tighten as expected, with C8 and C9 experiencing significant drops towards the end of the week. As the week drew to a close, there had been an increase in Pacific activity, leading to a rise in rates on C5 by a US$0.50 increase to a US$1.00. Additionally, in the Atlantic, from South Brazil to West Africa to the Far East, a stabilisation in rates was observed, prompting a shift in sentiment. Overall, the capesize market faced challenges, highlighting the volatility of the sector. The BCI 5TC rose US$466 to finish the week at US$35 320.

Panamax

It was a tumultuous time in the panamax market, with the stronger optimism seen before carrying over to the early part of this week, although this eroded away with the week ending on a far weaker tone. In the Atlantic, short front-haul trips ex US East Coast to India contracted throughout, with US$38 000, and US$26 500 reported fixed on this run, albeit on two contrasting types, providing a good indicator of the market trend on all routes. Asia also saw further erosion in rates despite solid levels of demand in most loading origins, but the weaker sentiment emanating from the Atlantic basin impacted confidence here as well, with tonnage count slowly building. About US$21 000 concluded early on an 82 000 DWT delivery China for a NoPac round trip, with deals for similar trips now concluding at closer to US$18 500 as momentum switched back in charterers favour.

Ultramax/supramax

A tough week after the recent strength in the sector as the market saw a change in direction. In the Atlantic, rates remained healthy with a good amount of fresh enquiry in the north, although South Atlantic demand slowed as the week ended. In Asia, the recent positive sentiment wavered, brokers stated that enquiry levels had eased across the region. In the Indian Ocean, enquiry levels remained fairly healthy and the market was seen as finely balanced. Period activity was limited but a 63 000 DWT open Philippines fixed a short period at around US$16 000. In the Atlantic, a 63 000 DWT was heard fixed in the mid US$17 000s plus mid US$700 000s ballast bonus basis delivery Santos for a fronthaul. Whilst a 56 000 DWT fixed a trip from Spain to the US East Coast at US$18 000. From Asia, a 58 000 DWT open Malaysia fixed a trip via Indonesia redelivery China at US$15 500. Further north, a 56 000 DWT fixed delivery mid-China for an Indonesian round voyage at US$12 000.

Handysize

Positivity grew across the sector as tonnage availability remained limited. In the US Gulf, a 35 000 DWT opening in Tuxpan fixed from SW Pass to the eastern Mediterranean in the mid US$20 000s. The South Atlantic also saw further gains as a 37 000 DWT fixed from Itaqui for mid-December dates for a trip to the Baltic at US$27 650. Whilst an unnamed large handy was rumoured to have been fixed for a trip from Recalada to the western Mediterranean at US$26 000. In the eastern Mediterranean, activity remained high as a 36 000 DWT fixed from Diliskelsi via Alexandria to Houston with a cargo of steels at US$15 000. The continent was also strong with a 37 000 DWT opening in Riga fixing for a trip to West Africa at US$30 000. Small gains were seen in the Pacific as a 28 000 DWT fixed from Japan to South East Asia at US$10 000 and in West Coast South America, a 35 000 DWT was fixed for a trip to Singapore-Japan at US$21 000.

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