Baltic Exchange: Dry Bulk Report – Week 43

Capesize

The Capesize market lost some of its earlier momentum this week, ending on a softer note. Early positivity in the Pacific, driven by steady miner demand, increased operator activity and weather-related port delays in China, gave way to a quieter close as offers on C5 slipped from the mid to high US$10s into the upper US$9s, with limited fixtures concluded. The Atlantic, initially buoyed by firmer transatlantic and fronthaul levels, also lost ground as fresh demand waned and a mild build-up in tonnage weighed on sentiment. Activity from South Brazil and West Africa to China slowed, with C3 rates easing from the mid US$24s towards the mid US$22s. A notable sell-off in the FFA market further compounded the softer tone across both basins. The BCI 5TC began the week at US$25 944, peaked on Tuesday at US$26 404 and gradually declined to close the week at US$23 811.

Panamax

The Panamax market strengthened throughout the week, driven by firmer sentiment and steady demand across both the Atlantic and Pacific. In the Atlantic, improved mineral demand and a tightening tonnage list supported gains, particularly on US East Coast fronthaul routes. End-November positions in the South Atlantic also commanded premiums, with an 84 000-dwt reportedly fixed at US$16 350 plus a US$635 000 gross ballast bonus for a trip via East Coast South America to the Singapore – Japan range. In the Pacific, consistent demand from Australia and NoPac underpinned firm sentiment, with rates holding at strong levels. NoPac rounds hovered around US$18 500 – US$19 000, while Australia round trips averaged US$17 500 – US$18 500. Period activity further boosted confidence, with an 82 000-dwt fixed CJK for 11 – 13 months at around US$14 150 and another 82 000-dwt reportedly fixed for one year, index-linked at 113% of the BPI (5TC). Overall, the week closed on a firm note, with balanced supply and demand pointing to continued strength heading into next week.

Ultramax / Supramax

A definite change in direction for the sector. The Atlantic underperformed of late, with brokers citing that cargo supply from key areas such as the US Gulf dropped, resulting in a decline in rates. It was rumoured that an Ultramax fixed in the mid/upper US$20 000s for a fronthaul. The South Atlantic similarly lacked demand, but a 63 000-dwt was heard fixed for a fronthaul at US$16 750 plus a US$675 000 ballast bonus. The only bright area seemed to be the North Continent, where scrap demand remained steady, with a 61 000-dwt fixing delivery Dunkirk for a trip to the East Mediterranean at US$29 000. Asia was a rather split affair as poor sentiment returned to the south, with a 58 000-dwt fixing delivery Koh Sichang for an Indonesia round in the mid US$12 000s. A bit more enquiry further north from the NoPac and Australasia regions helped maintain a slightly more positive feel, with a 63 000-dwt fixing delivery Japan for a trip via NoPac, redelivery Bangladesh, at US$17 500. Period activity remained under the radar, but an Ultramax open South China was fixed for 5/7 months in the high US$15 000s.

Handysize

The Handysize market experienced a largely steady but mixed week, fluctuating between cautious optimism and mild softness. In the Continent and Mediterranean, rates remained broadly flat throughout, restrained by limited fresh enquiry. A 40 000-dwt open Brake fixed for a trip to the US Gulf with timber at US$18 000. The South Atlantic and US Gulf were generally subdued, with few fixtures reported as some owners discounted to secure employment. Notable activity included a 33 000-dwt fixed from Recalada to Algeria at US$21 000 and a 40 000-dwt fixed from Savannah to the Continent at US$30 000. In Asia, activity was muted at the start of the week due to holidays but gradually improved as players returned, though fundamentals remained largely unchanged. A 37 000-dwt open Chiba 28 October fixed for a NoPac round trip at US$14 500. Period interest persisted, with a 37 000-dwt reportedly fixed at around US$17 000 – US$18 000 for 4/7 months, a 32 000-dwt securing a short period in the low US$13 000s and a 35 000-dwt fixed for 4/6 months at around US$15 500 – US$16 000. Overall, the market held stable across most regions, though the absence of significant fresh demand suggested potential softening ahead unless new enquiry emerges.

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