The Baltic Exchange provides an update on the Dry Bulk markets for Week 48. Information originally sourced from the Baltic Exchange.
Capesize
The Capesize market experienced a turbulent week, marked by a mix of sporadic positivity and mounting downward pressure. The BCI 5TC started the week at US$21,673, gained ground midweek, peaking at US$23 049 on Tuesday, but plunged to US$17 686 by Friday, losing US$3987 over the week. In the Pacific, initial optimism driven by miner activity was dampened by persistent weather disruptions and an expanding tonnage list. Rates on C5 trended down from a peak of US$10.585 on Tuesday to US$8.85 levels by weeks end, as dwindling cargo volumes exacerbated market softness. The Atlantic faced consistent challenges, with muted activity on South Brazil and West Africa to China and growing ballaster list weighed heavily on rates. The C3 index saw steady declines, dropping from US$23.090 on Monday to end the week at US$20.050.
Panamax
The decline in the Panamax market showed no signs of abating this week with further substantial corrections in both basins. In the Atlantic, a distinct lack of front haul demand as well as a steady build-up of tonnage count ultimately weighed heavy on the deals reported this week. An 81 000 dwt agreeing to US$13 500 early part of the week for a trip via US east coast redelivery India, but rates for this run were heavily discounted and some APS load port deals were rumoured by end week. Rumours emerged mid-week ex EC South America, an 82 000 dwt delivery APS Santos agreeing US$13 300 + US$330 000 ballast bonus for a trip to SE Asia. Asia remained downcast too as Indonesian coal exports continue to be an issue. And, despite some minor support ex Australia, this did little to dent into an ever-growing tonnage count with limited options. Period activity remained sparse, however did include reports of an 82 000 dwt delivery Korea fixing 4/8 months at US$11 650.
Ultramax/Supramax
Another rather unsettled week for the sector. The Atlantic lacked fresh impetus in most areas, not helped by the holiday in the United States. Demand from the US Gulf was rather positional, owners slightly reluctant to do business which would see vessels again open in the festive period. A 63 000 dwt fixing trip from the US Gulf to the Mediterranean at US$19 000, but similar size fronthaul business vessels were fixing around US$20 000. The East Mediterranean added further downward pressure as very little in the way of fresh enquiry entered into play. A 63 000 dwt was heard fixed from Turkey to the US Gulf at US$6000. Whilst the start of the week saw signs of a slightly firmer feel in the Asian arena, it closed down again due to little fresh enquiry and a good supply of prompt tonnage. A 57 000 dwt fixing delivery Singapore for a trip via Indonesia redelivery North China at US$9000. Further north, a 63 000 dwt open North China fixed a NoPac round at US$11,500. The only slight bright spark was seen from the Indian Ocean, slightly better demand being seen from South Africa, saw a 63 000 dwt fixing delivery Maputo for a trip China at US$18 000 plus US$180 000 ballast bonus.
Handysize
It's been a challenging week for the sector, with rates in both the Atlantic and Pacific regions continuing to face downward pressure. Across the Continent and Mediterranean, the market showed a lack of fresh impetus with overall sentiment remaining positional. Rates continued to hover around the last done. A 32 000 dwt was fixed for delivery Canakkale trip via Turkey and G.O.A. redelivery Bangladesh at US$9500. In the South Atlantic, market fundamentals remained relatively unchanged, with trans-Atlantic cargoes continuing to be the main driver for the region. A 37 000 dwt open in Salvador 25/27 November was fixed for delivery Recalada for a trip to West Coast South America at US$21 000. However, the US Gulf market was very quiet, primarily due to the Thanksgiving holiday festivities, with little fixing activity reported. Charterers have been bidding lower than previously agreed levels. A 38 000 dwt fixed delivery SW Pass redelivery West Coast with grains at US$14 750. In the Pacific, challenges persist with rising free tonnages and limited cargo availability. However, some sources suggest that the market may have reached its bottom, with no further significant rate drops expected. A 28 000 dwt vessel was fixed for delivery Vancouver redelivery Japan with petcoke at US$13 000.
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