Baltic Exchange: Dry Bulk Report – 14

Capesize

The Capesize market started the week slowly due to the Hari Raya Puasa holiday in Singapore but gained momentum as trading resumed. The Pacific saw a midweek rebound, driven by strong C5 activity, with all three miners fixing in the low US$9s. A tightening tonnage list and solid cargo volumes supported rates, while increased coal demand pushed timecharter earnings higher. However, as the week closed, market activity softened, partly due to holidays in Hong Kong and China, with C5 dipping to US$8.78. In the Atlantic, South Brazil and West Africa to China routes remained stable early on, but later in the week, C3 and West Africa to China rates edged lower despite steady tonnage and moderate cargo flow, with the C3 index ending the week at US$21.815. The North Atlantic saw increased trans-Atlantic activity, though fresh cargoes failed to absorb available tonnage, causing a sharp drop in the C8 index. Overall sentiment turned bearish, with the BCI 5TC falling to US$18 404 by week’s end.

Panamax

A compelling week for the Panamax sector, the uncertainty caused by the US tariff measure seeping into the market as momentum stalled as the week ended. All week, the Atlantic provided a positional divide with the North Atlantic tonnage under pressure owing to a lack of demand. With US$18 750 agreed for an 82 000 dwt delivery North Spain for a trip via NC South America redelivery Singapore-Japan, rates now appeared closer to mid US$17 000’s for the same criteria. Further south the steady flow of cargo from the Americas kept rates ticking along but appeared to taper off as the week ended as a wide bid/offer spread emerged with Charterers stepping back. Asia too saw steady declines on the week with the north of the basin coming under pressure, whilst further south some limited support lent by steady coal demand ex Indonesia along with grain supply emanating from South America. Plenty of period activity the headline rate being an 82 000 dwt delivery China achieving US$15 500 basis 1 year.

Ultramax/Supramax

In what has been a remarkable week for international trade, the sector was anything but remarkable. The Atlantic had a rather slow week, perhaps with an air of caution. Activity from the US Gulf wavered, but a 61 000 dwt was heard fixed for a trip to Japan at US$16 000. However, the South Atlantic seemed to have gained traction, a 64 000 dwt fixing at US$14 500 plus US$450 000 ballast bonus basis delivery EC South America trip to SE Asia. The Continent-Mediterranean were seen as positional, with owners looking for a bit of a premium for backhaul legs. Whilst scraps runs saw a 58 000 dwt fixing delivery Continent redelivery East Mediterranean at US$14 000. Limited NoPac and backhaul requirements from Asia led to sentiment remaining rather poor in the basin. Although some felt that owners willing direction India were seeing a premium. A 61 000 dwt fixing delivery Qinzhou trip via Indonesia redelivery WC India at US$16 000. The Indian Ocean remained rather lacklustre although a 63 000 dwt open Pipavav fixed a trip via Arabian Gulf to Bangladesh at US$12 000.

Handysize

The market this week saw minimal visible activity across both basins, with the overall sentiment remaining flat. The Continent and Mediterranean markets stayed subdued, with very little new information emerging, and rates generally held steady. A 35 000 dwt vessel open in Aliaga was fixed to NC South America at US$7250. In the South Atlantic and US Gulf, sentiment remained unchanged, with the tonnage count maintaining its length, which continued to put pressure on rates. A 38 000 dwt vessel was fixed for delivery Recalada and redelivery Algeria at US$15 250, while a 34 000 dwt vessel was fixed for delivery SW Pass and redelivery EC Mexico with grains at US$11 000. The Asian market also remained flat, despite a gradual increase in tonnage, some fresh demand has helped to maintain current rates, with no significant changes in cargo volumes to drive rates higher. A 40 000 dwt placed on subjects for delivery Kwinana 13 April redelivery China at US$16 000.

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