Strong gains made in capesize shipping market

Capesize

The Pacific saw a steady increase in activity, helped by an increase in coal shipments from East Coast Australia, with the C5 index experiencing upward trends. By the end of the week, the C5 index had risen, reflecting the healthy cargo volumes and late-week fixtures reaching up to US$11.095. In the Atlantic, the market showed robust support, especially for the South Brazil and West Africa to China markets. This increased activity was reflected in the C3 index, which also saw a rise by the week's end to close at US$27.375. Notably, the C9 index saw a significant boost due to higher rates for tender cargoes from East Coast Canada to the Far East. Overall, it has been a positive conclusion to a busy week, with the BCI 5TC rising by US$526 to reach US$26 059.

Panamax

A subdued week for the panamax sector. Trans-Atlantic trades were few and far between, and a general decline became evident in both grain and mineral demand in the basin. EC South America returned a contrasting week with some mixed rates reported, limited activity overall but P6 index dates appeared well balanced whilst first-half July arrival dates remained softer with committed and ballaster tonnage undermining any potential upside in rates. Typically, midweek fixtures on an Aps load port basis were circa US$19 250 + US$925 000 basis 82 000 DWT types. The Asian market continued to ease throughout the week, with support hard to come by as the tonnage count continued to grow, and with limited enquiry ex NoPac mineral demand ex Australia and Indonesia returned insufficient to prevent the softening of rates in the arena. On the period front, there were reports of an 82 000 DWT delivery China agreeing US$17 500 basis 12/15 months trading.

Ultramax/supramax

Some described the Atlantic as rather positional as rates were under downward pressure in the US Gulf. A 53 000 DWT fixed delivery southwest pass trip to the East Mediterranean in the low US$20 000s. Other areas such as the Continent-Mediterranean saw better demand than of late, which helped owners. From the South Atlantic, there was a slight pick-up in levels being traded. An ultramax was heard to have fixed and EC South America fronthaul at US$18 000 plus US$800 000. As the week progressed the Asian arena saw demand for backhaul steels and general cargoes from the north, which helped keep owners’ expectations high. A 63 000 DWT fixing from North China to the Continent via the Cape at US$15 000 for the first 65 days and US$18 000 for the balance. From the south, demand remand rather steady, with a 59 000 DWT fixing delivery SE Asia via Australia redelivery WC India at US$20 000. Period interest remained fairly slow, although a 64 000 DWT open Thailand fixed for period up to minimum September/maximum December 2024 redelivery worldwide at US$19 500.

Handysize

The highlight in the handy sector was the resurgence of the US Gulf with limited tonnage availability helping levels improve substantially. A 37 000 DWT fixing from SW Pass to Ireland at US$17 000 whilst a 38 000 DWT fixed from Morocco via the St Lawrence to the Mediterranean with iron ore at US$12 000. A 34 000 DWT was fixed from Puerto Cabello for two to three laden legs with Atlantic redelivery at around US$13 500. The was also positivity across the Mediterranean and the Continent with improving levels of enquiry, with a 36 000 DWT fixing from Constanta to Morocco at US$13 500. The South Atlantic showed negative sentiment as the current supply of cargo was unable to satisfy the demand of open tonnage. In Asia, visible activity was muted with holidays in Singapore also a factor, with a 38 000 DWT fixed from Lianyungang to the Arabian Gulf-West Coast India with steels at US$15 500 whilst a 38 000 DWT fixed from Singapore via Cigading to the Continent also with steels at US$12 000.

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