Baltic Exchange: Bulk report - week 38

Capesize

The market exhibited a generally softer tone through the first half of the week, with the Pacific bearing the brunt of the weakness as prompt tonnage continued to outweigh fresh cargo demand. C5 rates fell from the low US$17s at the start of the week into the mid-US$16s before sentiment began to stabilise towards the close. In contrast, the Atlantic proved increasingly resilient, with South Brazil and West Africa to China gaining momentum as fixing activity picked up, particularly in the latter part of the week. A series of C3 fixtures for October dates emerged in the low-to-mid US$42s, with stronger levels approaching US$43 as sustained fixing reduced both cargo availability and the number of ballasters. The North Atlantic also recovered some ground, with firmer fronthaul fixtures reported, although trans-Atlantic activity remained relatively limited. Overall, the BCI 182 5TC ended the week at US$52 315, down US$1307 from Monday's US$53 622, although sentiment improved towards the close as Atlantic demand strengthened and Pacific rates appeared to find a floor.

Panamax-Kamsarmax

The Panamax market experienced a generally softer week, with sentiment under pressure across both the Atlantic and Pacific basins, reflected in the steady decline of the P5TC. Early in the week, participants adopted a cautious approach, resulting in limited activity and wide bid-offer spreads. While fronthaul demand provided some support, overall momentum remained subdued. Notable Atlantic fixtures included an 82 000-dwt open in the North Continent fixing for a North Coast South America trip to China at US$34 750 while an 82 000-dwt open in West Africa fixed a trans-Atlantic round at US$23 500. As the week progressed, increased grain and mineral enquiry supported activity on both trans-Atlantic and fronthaul routes. An 82 000-dwt vessel fixed basis delivery East Coast India for a fronthaul trip via East Coast South America at US$24 000, while a 76 000-dwt vessel secured US$20 500 for a similar trade. However, ample vessel availability continued to weigh on rates. In the Pacific, demand from Australia, Indonesia and the North Pacific remained evident, although expanding tonnage lists and slower cargo activity pressured fundamentals. Indian mineral import demand generated several fixtures, including an 84 000-dwt vessel fixing at US$22 500 for a trip via Indonesia. Activity in the North Pacific also remained healthy, with a 78 000-dwt vessel fixing a grains cargo to the Singapore-Japan range at US$20 500, while an 82 000-dwt vessel secured US$19 000 for a similar trip. Period activity was also reported, with one 82 000-dwt vessel fixing for one year at US$22 500 and another securing US$17 000.

Ultramax/Supramax

Slow steady gains to the index again this week, with the Asian market posting the increases this week. The North Pacific was active with grains, potash, and soda ash stems aplenty, supported from a busy backhaul market with several vessels fixed via the Gulf of Aden to the Mediterranean in the low US$20 000s. Indonesian coal demand saw rates jump from a 60 000-dwt fixed delivery Chittagong via Indonesia to India at US$19 500 on Monday, to several Ultramaxes fixed at US$22 000 towards the end of the week, albeit with slightly larger deadweights. The highlight from South Africa was a 58 000-dwt being covered at US$26 750 plus US$270 000 ballast bonus for a trip to Pakistan-India. The positive sentiment resulted in more period trades, with a 63 000-dwt fixed for 5 to 7 months at US$23 000 and a 66 000-dwt fixed for 6 to 8 months at US$23 500, with many of these trades involving backhaul business as first employment. In the Atlantic, the US Gulf remained flat with 63 000-dwt fixed at US$33 000 to Vietnam. The Mediterranean was active all week with small gains, but the Continent suddenly found itself bereft of tonnage after various fertilizer and grain stems were covered, so the scrap market scrambled for tonnage, with talk of rates being discussed in the mid to upper US$30 000s for trips to Turkey on Ultramaxes.

Handysize

The Handysize market strengthened over the week, with the Atlantic remaining the main source of support again. The Continent and Mediterranean remained balanced to firm, underpinned by healthy scrap demand and several strong fixtures, including a 33 000-dwt was placed on subjects at US$29 000 for a trip from Aalborg to the East Mediterranean. The US Gulf maintained strong upward momentum as tight tonnage and healthy demand lifted rates, highlighted by a 40 000-dwt reported fixed from the Mississippi River to Turkey at US$28 000. The South Atlantic also remained well supported, with a 38 000-dwt reported fixed from Vila do Conde to Norway at around US$25 000. In contrast, the Pacific was largely steady to subdued, with limited fresh enquiry and rates generally holding around last-done levels. A 39 000-dwt open Yokohama was fixed via Japan to Malaysia with slag at the mid-US$17 000s. Period activity remained evident, including a 40 000-dwt fixed for one year at US$17 250.

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