The Baltic Exchange provides an update on the Dry Bulk markets for Week 11. Information originally sourced from the Baltic Exchange.
Capesize
The Capesize market experienced a week of gradual strengthening, with positive momentum building from midweek onwards as activity increased and tonnage tightened in both the Pacific and Atlantic basins. The BCI 5TC experienced a steady rise throughout the week, before a slight correction saw it close at US$23 697, up from US$20 544 at the week's start. In the Pacific, consistent activity from all three miners, improved coal cargo volumes, and a solid flow of operator-controlled cargoes supported the market. Rates on C5 climbed steadily, peaking at US$11.58 before correcting to US$10.665 by the week's end. The South Atlantic saw a persistently short tonnage list of ballasters driving C3 levels from US$22.50 to around the US$25 range for mid-April dates, with fresh cargo providing additional support. The North Atlantic remained relatively quiet, with limited fresh cargo and minimal fixing activity. However, a couple of significant fixtures indicated stronger rates, including a transatlantic and a Fronthaul fixture reported at around US$43 000 for 75 days. Yet, some questioned whether these levels could be repeated.
Panamax
The Panamax market erupted into life midweek with rates surging as a strong push in the Atlantic market, both South and North America led the drive. Aided by a supporting FFA market, the period market kicked into gear with a raft of deals concluded at stronger levels, notably a Japanese built 82 000 dwt delivery Japan achieving US$15 500 for one year’s employment. In the Atlantic, strong demand both minerals and grains, a tight tonnage count along with the uncertainty caused by USTR provided the perfect recipe for the strong surge in rates witnessed this week. Midweek witnessed a binge of fixing from EC South America and this in turn gave additional support to the Asia market that, up until that point, had been less vigorous despite robust demand from both NoPac and Australia supporting improved rates, however the week ends with many with time on their hands pausing, but for the moment the immediate outlook appears firmly in owners favour.
Ultramax/Supramax
A more positive week for the sector although there was stronger demand from the Asian arena, the Atlantic remained somewhat of a mixed affair. The recent tariff on and off causing a cautious approach for many. The US Gulf was generally flat a 63 000 dwt fixing a trip from US Gulf to India with pet coke at US$17 000. Further south, a 61 000 dwt was fixed basis delivery Santos for a trip Bangladesh-China in the upper US$12 000s plus upper US$200 000s ballast bonus. A rather positional feel from the Continent-Mediterranean, a 57 000 dwt fixing delivery Amsterdam trip via Continent to the Far East in the mid-teens. Asia, say stronger rates being discussed as the week progressed, A 63 000 dwt fixing delivery Cigading for a trip via Kalimantan redelivery WC India at US$18 000. Backhaul activity was seen, a 63 000 dwt fixing delivery China for a trip to West Africa at US$13 000. The Indian Ocean remained rather subdued although a 61 000 dwt was fixed delivery Tuticorin trip via South Africa redelivery China at US$10 500.
Handysize
This week, the market exhibited a mixed performance, with modest fluctuations across both basins. The Continent and Mediterranean regions continued their positive trend, with rates slightly surpassing previous levels, indicating ongoing support. For example, a 39 000 dwt fixed a trip delivery Skaw to redelivery Morocco at US$14 000. In contrast, the South Atlantic and US Gulf markets remained sluggish, facing challenges with increasing tonnage and limited cargo availability. A 33 000 dwt open in Tema secured a trip from delivery Fazendinha to redelivery Italy with grains at US$10 500. Meanwhile, in Asia, the market stayed robust, buoyed by a more balanced demand-supply dynamic, especially in Southeast Asia and the North Pacific, with several strong fixtures recorded. A 39 000 dwt vessel, open on 19 March, fixed a trip from Guayaquil to Japan via Vancouver, carrying grains at US$11 500.
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