Baltic Exchange: Dry Bulk Report – Week 42

Capesize

The Capesize market experienced a volatile week marked by sharp swings in sentiment and rates following China’s announcement of new port fees on US-linked vessels. Early gains, driven by speculation over potential inefficiencies, quickly reversed as clarity emerged that Chinese-built tonnage would be exempt, triggering a sharp midweek correction. The Pacific market saw notable fluctuations on C5, with rates ranging from the low US$12s to low US$10s. However, sentiment edged firmer toward the end of the week on the back of improved operator demand despite limited miner presence. The South Brazil and West Africa to China markets maintained steady activity, with C3 levels softening to the low US$23s before firming again to close the week in the mid/upper US$24s. The North Atlantic remained relatively balanced, supported by consistent demand for both transatlantic and fronthaul voyages. The BCI 5TC opened at US$28 132, dipped midweek to US$24 185, and recovered to US$25 882 by week’s end, encapsulating the week’s volatility.

Panamax

The US–China trade/tariff speculation in the early part of the week curtailed activity, with most players holding off while trying to work out the full implications. During this time, physical market fundamentals remained mostly unshaken. Despite a volatile FFA market, physical rates settled down midweek and the market appeared steady. Fronthaul demand in the North appeared a little nervous in places with a lack of activity, whilst rates for transatlantic trips settled flat to last done – US$17 000 achieved on a few occasions for trips via USG/US East Coast, redelivery Skaw–Gibraltar. East Coast South America saw a small increase in activity with early November arrivals capturing better numbers – talk of low-mid US$15 000s being agreed, albeit on equivalent levels to route P6. Asia witnessed a firmer week, with the NoPac market in particular finding support. US$16 500 was concluded on an 82 000-dwt delivery Japan for a grain NoPac round, whilst LME tonnage was comfortably achieving upper US$16 000 levels for trips via Indonesia to China. Period activity was limited but included US$16 000 reported on an 82 000-dwt delivery China basis 6/8 months.

Ultramax / Supramax

After the previous week’s widespread holidays, it was a slightly more positive affair for the sector. The Atlantic was rather positional overall. Stronger numbers were seen from the South Atlantic, with a 61 000-dwt fixing an East Coast South American fronthaul at US$16 750 plus US$675 000 ballast bonus. Elsewhere, a 57 000-dwt open West Africa fixed a trip to China at US$20 500. Better demand was seen from the Mediterranean, with a 64 000-dwt fixing in the mid US$14 000s from Alexandria to the US Gulf. More fresh enquiry appeared in Asia as the week progressed, helping rates improve. A 63 000-dwt open CJK fixed a NoPac round, redelivery Bangladesh, at US$17 000. From the south, a 61 000-dwt fixed a trip from Kalimantan to Bangladesh at US$20 000. Backhaul activity returned – a 61 000-dwt fixed delivery CJK trip to West Africa at US$14 500. More activity was registered from the Indian Ocean, with a 64 000-dwt fixing delivery Tuticorin trip via South Africa, redelivery Singapore–Japan at US$16 750.

Handysize

Overall, the market remained steady and relatively balanced throughout the week. In the Continent and Mediterranean, activity was limited but sentiment stayed firm, with some routes showing marginal improvements. For example, a 40 000-dwt was fixed from Montoir to Morocco with grains at US$21 000. In the South Atlantic, fundamentals held stable, particularly for larger vessels, with a 38 000-dwt reportedly fixed from Upriver to the West Coast of South America at US$30 000. In contrast, the US Gulf continued to strengthen, supported by renewed demand and a tightening tonnage list. A 38 000-dwt was fixed delivery Panama City for a trip to the UK–Continent with pellets at US$29 000. In Asia, sentiment remained largely positional, with some signs of tightening tonnage in both the North Pacific and Southeast Asia; however, rates were broadly steady. A 39 000-dwt was reported fixed from Zhenjiang to the Arabian Gulf at US$18 000. The period market also drew interest, with a 36 000-dwt open in the Far East end-October fixing one year at US$13 150, while another 39 000-dwt open Vietnam was fixed for 3/4 months at US$15 750.

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