Baltic Exchange: Dry Bulk Report – 6

Capesize

The Capesize market experienced a generally softer week, with the 5TC declining to US$6733 by Thursday then edging back up to US$6964 by the end of the week. Despite the Pacific showing signs of strength with a healthy cargo flow and tightening of tonnage early in the week, reported fixtures struggled to push levels higher. The C5 index hovered around the upper US$6s to settle at US$6.71 by weeks end. In the Atlantic, the North saw continued oversupply of tonnage, particularly on transatlantic routes, where limited cargo led to steep declines on C8, which fell to US$4257 by midweek. Some Fronthaul activity provided slight support, keeping the C9 index steady in the low US$25 000s. Conditions from South Brazil and West Africa to China were relatively subdued, though bids and offers remained around the high US$16s versus low US$17 range. Despite some midweek positivity in the Pacific, overall sentiment remained weak.

Panamax

Mixed market signals highlighted well with a volatile FFA market failed to dampen spirits in the Panamax sector, with significant gains made. Transatlantic volume remained thin still, but positive sentiment radiated from firmer rates on the fronthaul trips. South America mid-week became the market’s driving force, with the March arrival window absorbing several vessels at firmer rates compared to end February where rates inevitably became discounted. Typically, some of the well described units were able to achieve firmer levels, the headline rate of US$13 000 delivery Singapore with various load options of EC South America/US Gulf and NC South America trip to Far East. This seemingly impacted positively on south positions in the Pacific basin despite limited fresh demand from Indonesia and Australia. NoPac rates appeared well supported all week, US$10 500 agreed on 82 000 dwt delivery Japan for a NoPac round trip. Period activity was muted but reports emerged of an 85 000 dwt delivery Vietnam fixing at US$1400 basis 1 year period.

Ultramax/Supramax

With the end of the widespread Lunar New Year holidays, the sector saw upward momentum return in most areas throughout the week. In the Atlantic, better numbers were seen than of late, a 63 000 dwt was heard fixed delivery EC South America for a fronthaul in the mid US$11,000s and mid US$100 000s ballast bonus. Elsewhere, a 58 000 dwt fixed a trip delivery SW Pass redelivery Buenaventura at US$13 100. Asia saw a significant increase inactivity again this renewed interest helped push rates up. A 53 000 dwt fixing delivery North China for a trip to Bangladesh at US$9000. Further south, a 55 000 dwt fixed delivery Singapore for a trip to China at US$8500 with option redelivery SE Asia at US$8000. From the Indian Ocean, a 64,000 dwt was heard fixed delivery Chittagong trip via Indonesia redelivery WC India at US$7000. Period interest was seen a 63 000 dwt open Germany fixed for 4/6 months trading redelivery worldwide at US$12 250.

Handysize

This week, the market displayed a mixed performance with slight movements across both basins. The Continent and Mediterranean regions saw some positive momentum, with rates edging slightly above previous levels and market appearing more supported. For instance, a 37 000 dwt reported fixed delivery Skaw via Riga to redelivery Morocco with grains at US$8250. Meanwhile, the South Atlantic also showed improvement as new requirements entered the market and tonnage availability tightened, prompting owners to raise their offers. A 35 000 dwt open Puerto Montt 2 - 3 Feb fixed delivery Recalada via upriver redelivery WC South America at US$13 000. On the other hand, the U.S. Gulf market remained subdued and still showing signs of weakening support. A 38 000 dwt placed on subjects for SW Pass for redelivery West Coast Central America at US$10 250. In Asia, activity began robustly, with an optimistic sentiment prevailing as the cargo book displayed healthy volumes. A 40 000 dwt fixed delivery Yeosu to redelivery Mumbai with steel coils at US$7750.

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