Baltic Exchange: Dry Bulk Report – 2

Capesize

The Capesize market experienced a turbulent week, beginning with notable softness but regaining momentum by Thursday and closing on a positive trajectory. The 5TC average started at US$10 696 per day, dropped to US$9123 per day midweek, and rebounded to US$12 010 per day by week's end. In the Pacific, the market remained under pressure due to a persistent oversupply of tonnage. Limited miner activity and fixtures concluded in the low US$6 range, causing the C5 index to decline from US$6.84 on Monday to US$6.245 by Friday. Meanwhile, the South Brazil and West Africa markets gained strength as tighter tonnage availability for late January dates supported firming rates. The C3 index rose from US$17.64 to US$18.155 over the week, underpinned by increased fixing activity. The North Atlantic saw a shift in sentiment towards the end of the week, bolstered by extreme weather and limited tonnage availability. This led to a rally on the transatlantic (C8) and fronthaul (C9) routes, with rates climbing to US$16 857 per day and US$31 813 per day, respectively.

Panamax

The decline in the Panamax market showed no signs of abating this week, with further substantial corrections in both basins. In the Atlantic, despite decent demand both mineral and grains in the North, this fell short against the build-up of tonnage count, which ultimately weighed heavily on the deals reported this week. Limited talk midweek of a floor being found from EC South America appeared premature, with charterers still able to pick off the ample ballasters for index arrival dates, with rates now appeared to be in the US$8000’s as opposed to US$9000’s first part of the week. Asia also remained downcast, rates ex NoPac the exception remaining steady all week as tonnage remained tight in the North, whereas the South mirrored something of a bloodbath as both rates ex Australia and in particular Indonesia came under severe pressure, with rates in the US$1000’s agreed ample times on the older/smaller LME types.

Ultramax/Supramax

The start of 2025 for many would be one to forget as both the Atlantic and Asian arenas failed to gain any real traction. Fresh enquiry remained limited and there was a considerable amount of prompt tonnage which remained open after the holiday season. In the Atlantic, a 63 000 dwt was fixed from the US Gulf to the East Mediterranean at US$18 500, whilst for fronthaul business a 58,000 dwt fixed a trip to Japan at US$17 250. From the South Atlantic, again opportunities remained limited a 63 000 dwt fixing delivery EC South America trip to Bangladesh at US$13 400 plus US$340 000 ballast bonus. The abundance of tonnage in the Asian arena saw a 57 000 dwt fixing an Indonesian round basis delivery South China in the mid US$5000. Limited steel movement further north saw a 61 000 dwt fixing a trip to the Continent at US$8750 for the first 75 days and US$12 000 for the balance. Period action remained subdued; a 63 000 dwt open West Africa fixing 3/5 months trading redelivery worldwide at US$14 000.

Handysize

As anticipated, the first full week of the new year has seen limited activity across both the Atlantic and Asian basins, with market sentiment remaining generally subdued. In the Atlantic, market maintains a soft tone, as the tonnage count maintain its length across most loading areas. A 28 000 dwt fixed delivery Montevideo 15/30 Jan trip to redelivery West Coast Central America with agriculture US$15 700. A 36 000 dwt fixed delivery Praia Mole to redelivery North Coast South America at US$13 500. Similarly, in Asia, the overall sentiment also remains negative, owners with prompt vessels are adjusting their expectations due to the limited cargo availability, which has resulted in rates falling below the previous levels. A 38 000 dwt fixed delivery Singapore trip via Thailand to redelivery Indonesia with sugar at US$7500. Period activity was limited too with most operators are hesitant to take on risk at this time.

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