Baltic Exchange: Dry Bulk Report – 7

Capesize The Capesize market saw a generally softer trend this week, with the 5TC declining over the first three days before stabilising as activity picked up to close at US$5939. However, this still reflected a week-on-week loss of over US$1000, marking its lowest level since late February 2023, and the lowest time-charter average among the four dry bulk sectors. In West Australia, cyclone conditions disrupted operations at Port Hedland and Dampier, while a fire was reported at the Praia Mole Coal Terminal in Brazil. C3 Tubarao to Qingdao and C5 West Australia to Qingdao routes closed the week at US$16.755 and US$6.03 respectively. A growing number of ballasters were observed in the South Atlantic, with some competing with vessels in the Continent-Mediterranean region for transatlantic and fronthaul business. C8 the transatlantic round voyage was marked at US$3643 whilst C9 the fronthaul run stood at US$24 906. A 208 000 dwt Newcastlemax was fixed for 20-22 months at US$26 000.

Panamax

A week of steady declines for the Panamax market returned this week. With the North Atlantic basin under pressure for most part, resistance proved to be mostly scarce. This resulted in charterers driving down bids, noticeably for the few trans-Atlantic runs available. South America for the nearby dates remained discounted, whereas for index dates, some support was evident as seen by an 82 000 dwt delivery Singapore achieving US$10 000 for a trip via South America redelivery Singapore-Japan. Asia bucking the trend for the first part of the week returned decent levels of activity culminating in firmer rates, only for rates to plateau a little as the week ended. NoPac rounds hovered around the US$10 000 mark with several deals concluded, whilst from Australia the mean average was circa US$9000 for round trips. There was some heightened period activity seen this week, the highlight being US$14 750 agreed both on an 82 000 dwt delivery China fixed basis 5/7 months, and an 85 000 dwt delivery Bangladesh for 11/13 months period charter.

Ultramax/Supramax

Another buoyant week for the sector, as renewed interest pushed demand up, helping rates gain ground in most regions. The Atlantic saw stronger demand from the East Mediterranean, brokers said, although fixing information remained limited. From the US Gulf, better levels were seen again, with a 63 000 dwt fixing a trip from the US Gulf to the Far East in the mid-US$19,000s. Meanwhile, in the South Atlantic, a 63 000 dwt fixed delivery Recalada for a trip to the Continent at around US$20 000. Positive sentiment remained in Asia, with a 63 000 dwt fixing delivery South China for an Australian round at US$10 000, while better demand on backhaul runs saw a 58 000 dwt securing mid-US$10 000s for a trip from China to the Mediterranean. The Indian Ocean lagged slightly, with a 56 000 dwt fixing delivery Port Elizabeth for a trip to China at US$9000 plus a US$90 000 ballast bonus. Period interest remained, with a 56 000 dwt open Mediterranean fixed at the beginning of the week for 4 to 6 months' trading, redelivery worldwide, at around US$11 000.

Handysize

This week, the market has shown a mixed performance across the regions. In the Continent and Mediterranean, there’s a sense of stability, supported by a healthy cargo book and ongoing scrap orders. For instance, A 35 000 dwt heard fixed delivery Continent redelivery East Mediterranean with scrap in the US$9000s. In the South Atlantic, market fundamentals remained strong particularly for larger sizes and indicating continued support. A 40 000 dwt fixed delivery Recalada trip to redelivery WC Central America at US$18 000. In contrast, in the US Gulf, although rates were gently improving, overall action was minimal comparing to other routes. A 38 000 dwt reported fixed delivery South West Pass to redelivery Balboa-Puerto Quetzal range with agriproducts US$11 800. Meanwhile, in Asia, the market remains strong, with a healthier demand-supply balance, particularly in Southeast Asia, where several strong fixtures were reported. A 40 000 dwt heard fixed Kunsan spot fixed for trip delivery South Korea to redelivery West Coast of India with steel products at US$12 000.

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