Baltic Exchange: Dry Bulk Report - 44

Capesize

The Capesize market reflected a gradual softening this week, especially in the Atlantic, where activity remained sparse and transatlantic fixtures weakened. The week opened with limited interest from miners in the Pacific, further compounded by disruptions at Chinese ports due to adverse weather. The Atlantic also faced downward pressure throughout the week, with the C3 index easing consistently due to an abundance of vessels in ballast. The North Atlantic market saw limited activity early in the week, with TA rates initially dropping while fronthaul held firm. Despite an uptick in activity midweek, driven by an increase in coal cargoes from East Australia, the Pacific market softened again as Singapore prepared for Deepavali. The C5 index oscillated slightly, ending the week at US$8.60. The Singapore holiday on Thursday curtailed activity, leading to flatness in the Pacific, though Brazil and South Africa markets saw steady demand. By the end of the week, the BCI 5TC held steady, closing at US$15 329, a slight decline of US$36.

Panamax

A week blighted by various holidays, unexpectedly a slower pace in both basins. Much of the focus in the Atlantic came from trans-Atlantic runs, the early part of the week seeing a mini push, with reports of an 82 000 dwt delivery Continent achieving US$9500 for a trip via US Gulf redelivery this side, the headline. Further South, rates came under pressure as limited trade and a softer outlook ensued. Asia remained steady but unspectacular all week, primarily led by strong grain demand. However, an oversupply of nearby tonnage kept rates in check, varying rates agreed but the mean average of US$11 500 returned the benchmark on 82 000 dwt types delivery China for NoPac round trips. Indonesian coal demand was mostly endorsed by smaller/older types with rates flat at around the US$12 000 mark. Period activity remained meagre, although reports emerged of an 82 000 dwt type delivery China fixing basis 1 year on an index linked basis at 112% of the BPI.

Ultramax/Supramax

It was a rather poor week for the sector, not helped by widespread holidays in both Europe and Asia. The Atlantic struggled to gain any traction with demand from the Americas thinning and downward pressure on rates being seen. A 63 000 dwt fixing from the US Gulf to China at US$22 500. Further south, a 64 000 dwt fixed from EC South America for a trans-Atlantic run at around US$17 000 – US$18 000. The Continent / Mediterranean remained finely balanced, although a 56 000 dwt fixed delivery Continent trip East Mediterranean with scrap at US$15 000. The recent declines seen from the Asian arena continued with supply outnumbering demand and prompt tonnage readily available. A 61 000 dwt fixed delivery Koh Sichang via Indonesia redelivery S. China at US$13 000. The Indian Ocean also came under pressure a 61 000 dwt fixing delivery South Africa trip to China at US$18 000 plus US$180 000 ballast bonus. Period activity remained very languid, a 58 000 dwt open Vietnam fixing 4 to 6 months trading at US$13 500.

Handysize

The sector saw limited visible activity across both basins this week. In the Continent and Mediterranean regions, the market remained finely balanced, showing some support with rates edging slightly above previous levels. A 33 000 dwt open Teesport 3-5 November heard fixed delivery passing Skaw via Rostock to Algeria with grains at US$12 000. The US Gulf and South Atlantic saw generally quiet week overall and market fundamentals showed little change with rates generally holding steady around last done levels. A 37 000 dwt fixed delivery Upriver for a trip to redelivery Greece at US$17 000. A 39 000 dwt open Mobile 2 November was heard fixed for short trip redelivery US Gulf with petcoke at US$16 500. In Asia, the tonnage count has been increasing throughout the week, leading downward pressure on rates and anticipating further market softening. A 37 000 dwt fixed delivery dop Cebu prompt trip to redelivery Pakistan with bulk cargo at US$11 000.

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