Baltic Exchange: Bulk report – week 37

Capesize

The market experienced a mixed week, with the Pacific providing the main source of volatility, while the Atlantic remained comparatively steady, albeit lacking consistent momentum. The Pacific initially came under pressure before recovering through midweek, supported by regular miner participation on C5, with fixtures progressing from the low US$18s to around US$18.50. However, this improvement proved short-lived as late-week fixing slipped back below US$18/t, leaving sentiment softer heading into the close. South Brazil and West Africa were quieter, with limited engagement around index dates. C3 values generally held in the low US$41s, with occasional fixtures reported towards US$42. In the North Atlantic, sentiment was mixed to softer, particularly following weaker fronthaul fixtures, although tighter prompt tonnage and a limited number of remaining stems provided some support for the trans-atlantic route. Overall, the BCI 182 5TC ended the week at  US$55 139, down  US$1492 from Monday's US$57 011. Higher bunker prices and ongoing uncertainty in the Middle East remained additional factors for market participants to consider.

Panamax-Kamsarmax

This week began on a subdued note as the US Labor Day holiday led many market participants to reassess positions and rate expectations. Activity remained limited across both basins, although Pacific sentiment stayed positive, supported by steady demand on shorter-haul routes. Notable fixtures included a 73 000 dwt and 74 000 dwt vessel fixing Indonesia to South China at US$17 000 and US$18 000, respectively.

As the week progressed, Atlantic sentiment remained under pressure due to an oversupply of prompt tonnage, particularly in the North Continent, with an 82 000 dwt vessel fixing a trans-atlantic round at US$20 750. Fronthaul activity proved more resilient, supported by ongoing coal and grain demand, with an 82 000 dwt vessel securing US$24 000 for an EC South America trip from EC India and an 81 000 dwt fixing US$24 000 basis delivery Singapore.

In contrast, Pacific fundamentals strengthened, highlighted by an 85 000 dwt vessel fixing an Australian round voyage at US$27 000. Period activity was limited, with an 82 000 dwt vessel reported fixed for one year at US$22 000 and an 81 000 dwt fixing for 5 - 7 months for the same rate. Overall, the Pacific outperformed the Atlantic, with sentiment remaining broadly supportive despite only modest index movements.

Ultramax/Supramax

A week of steady improvement, with the index posting gains every day and finishing the week over US$500 higher on the 11TC average. North America was the main driver again with the fronthaul market the most active. A 63 000 dwt fixed a grains stem to the east at US$34 000, and at the end of the week there was a rumour of a similar type fixed for a petcoke cargo for US Gulf to India at US$38 000. In the south, rates were largely maintained with the highlight being a 63 000 dwt achieving US$20 000 plus US$1 000 000 ballast bonus for grains Recalada to the East. In Asia, the market was relatively flat with the odd positional increase, with North Pacific grains and the backhaul market the main strength, whereas Southeast Asia was slightly softer due to ballasters from EC India and Bangladesh with a 55 000 dwt fixed basis Singapore delivery via Indonesia to China at US$17 000. Rates from South Africa remained steady with a 64 000 dwt fixed from WC India at US$18 000 for coal to the Far East. The period market was subdued this week.

Handysize

The Handysize market showed a firmer tone over the week, with the Atlantic remaining the main source of support. The US Gulf and South Atlantic strengthened as tightening tonnage and steady demand helped push rates above previous levels. A 37 000 dwt was reported fixed from Mobile to Ushant-Skaw with wood pellets at US$19 000, while a 28 000 dwt was reported fixed basis delivery Matadi on 7 - 10 September via Recalada to Tema with grains at US$10 000. The Continent and Mediterranean were generally steady, with limited visible fixing activity but firm underlying fundamentals. A 33 000 dwt fixed from Spain via Arzew to the US Gulf with bagged cement at US$10 000. In Asia, sentiment was more balanced to subdued, with activity varying by area, while some Pacific routes showed modest improvement and a slight increase in Southeast Asian tonnage kept participants cautious. Reported fixtures included a 38 000 dwt open Jakarta 9 - 10 September fixed via Dampier to China with salt at US$19 000.

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