Baltic Exchange: Dry Bulk Report – 47

Capesize

The Capesize market experienced a challenging week, marked by a gradual softening across both basins. Monday began quietly, with rates in the Pacific and from South Brazil and West Africa to China sliding amidst limited fresh cargo and standoffish sentiment between owners and charterers. The North Atlantic showed early signs of tonnage build-up, adding downward pressure. As the week progressed, the Pacific basin experienced notable corrections, where C5 rates dropped by a dollar, driving the Baltic C5TC down by nearly US$3000 to US$23 291. Activity from South Brazil and West Africa to China as well as the North Atlantic remained muted, with softer spot fixtures reflecting weaker sentiment. Midweek, the Pacific rebounded slightly, buoyed by robust activity from all three major miners and improved coal demand, which nudged C5 rates upward. Despite this, the Atlantic remained subdued, with limited movement on C3. The week concluded with steady but uninspiring Pacific trading, while Atlantic’s sluggishness persisted, reflected in a softer BCI 5TC, closing the week at US$21 778.

Panamax

Despite healthy activity, the Panamax sector continued on its turbulent path this week. There are still mixed views in the Atlantic, the grain versus mineral spread seemingly still exists, whilst fronthaul in general has witnessed further softening of levels. So, we end the week with rates mostly broadside. The Atlantic witnessed better volume but it was still limited chiefly to trans-Atlantic trips where a steady flow ensued, an 82 000 dwt delivery NW Africa fixing at US$12 000 for a US Gulf round redelivery Atlantic, vessel’s favourable delivery reflective in rate. Despite steady activity, it returned an unspectacular week in the Asian basin. The longer NoPac and Australia round trips were sparse against tonnage count, but did include an 82 000 dwt delivery Korea agreeing US$11 000 for a trip via EC Australia redelivery China. We end the week in need of a fresh injection if we are to see any sustainable improvements. Period news included reports of an 85 000 dwt delivery China achieving US$15 700 for 12 months period.

Ultramax/Supramax

Another rather sombre affair for the sector, certainly in the Atlantic as downward pressure remained in most areas. Whilst there had been a bit of activity from the US Gulf rates in the region remained relatively poor. A 63 000 dwt fixing from here to the East Mediterranean at US$19 000. The South Atlantic lacked fresh impetus a 64 000 dwt was heard fixed from EC South America for a fronthaul in the US$14 000s plus low US$400 000s ballast bonus. As week ended, the Asian arena seemed to have turned a corner as demand increased both from the north. A 63 000 dwt was heard fixed basis delivery CJK for a NoPac round redelivery South Korea at US$12 000. Further south, a 55 000 dwt fixing delivery Singapore trip via Indonesia to China in the mid US$10 000s. Period action remained muted, but a 64 000 dwt was fixed basis delivery Far East January 2025 for 2 years trading at 117 percent of BSI 58.

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 34 000 dwt open Gijon heard fixed delivery APS Rotterdam redelivery East Mediterranean with scrap in the US$12 000. In the South Atlantic, market fundamentals remained strong particularly for larger sizes indicating continued support. A 41 000 dwt open Vitoria 20 Nov fixed delivery APS Recalada for trip to Peru at US$20 000. In contrast, the U.S. Gulf is experiencing a sluggish market with limited activity and a continued downward trend, driven by an oversupply of tonnage. A 40 000 dwt open East coast Mexico reported fixed delivery Southwest Pass to redelivery West Coast Central America at US$16 500. Meanwhile the Pacific market was showing softer sentiment due to increasing tonnage and limited cargo availability from the North Pacific and Australia. A 38 000 dwt heard fixed delivery DOP Indonesia via West Australia to Indonesia with salt at US$13 000.

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