The Baltic Exchange has reported on another week of improvement

Capesize

As the week progressed, the Pacific saw lower trading volumes, resulting in a decline in market activity and increased pressure, with rates on C5 dropping by approximately a further US$0.85. However, the Atlantic witnessed heightened activity late in the day, particularly originating from South Brazil and West Africa to the Far East. A positive shift occurred in the pacific, with two out of three miners actively participating in the market, accompanied by a handful of operator-controlled cargoes, halting the rate decline on C5 and leading to a notable recovery of lost ground. As the week draws to a close, all three miners have been present and C5 has surged by US$1.35. The Atlantic market also saw increased activity, contributing to significant rate recovery, especially from South Brazil and West Africa to the Far East routes, with the early arrival demanding a significant premium. The North Atlantic, although relatively quiet, maintained positive sentiment due to a fresh influx of cargoes and constrained tonnage supply, resulting in significantly stronger fixtures towards the end of the week. The BCI 5TC started the week at US$22 447 and dropped to US$20 029 by mid-week to close today at US$28 071.

Panamax

Another week of upward momentum in the panamax market, with the North Atlantic trips seeing the largest gains. In the Pacific, healthy coal enquiry from Australia and Indonesia kept rates relatively stable on the week, whilst solid grain demand ex NoPac also lent support in the north of the basin. There has been slower trade volume from South America, although an 81 000 DWT delivery Singapore fixed at US$14 250 for a trip via EC South America redelivery Far East. In the east ex Australia, an 81 000 DWT delivery Japan achieved a shade over US$15 000 for an Australian mineral round trip whilst from Indonesia some contrasting rates, with a 75 000 DWT vessel agreeing to US$14 000 for an Indonesia to China trip. In the early part of the week, a 75 000 DWT vessel fixed at US$12 500 for a similar run. A flurry of period fixtures, including reports of an 82 000 DWT delivery Japan-China achieving US$14 500 for two years employment.

Ultramax/supramax

The positive momentum continued throughout the week despite the holiday in the US and Japan. The Atlantic saw sustained demand from key areas such as the US Gulf and it was a similar story from South America, with a 53 000 DWT heard to have fixed delivery Santos for a fronthaul in the mid US$15 000s plus mid US$500 000s ballast bonus. In the US Gulf a 56 000 DWT fixed at US$30 000 for a trip to the UK. Mixed signals from the Asian arena but overall it remained cautiously optimistic. A 61 000 DWT open North China fixing an Australian round at US$11 500, while further south, a 58 000 DWT open Sarawak was fixed for a trip via Indonesia redelivery China at US$13 000. Sustained demand in the Indian Ocean saw a 63 000 DWT fixing delivery Visakhapatnam for a trip via South Africa for a fronthaul at around US$14 500. It was also worth noting that period activity increased a 63 000 DWT open Italy was heard for three to five months trading at US$18 500.

Handysize

The Atlantic saw daily improvements due to limited tonnage availability. On the US East Coast, charterers continued to source tonnage from further afield with a 38 000 DWT fixing from Tyne, UK via St Lawrence to the Continent-Mediterranean at US$18 000 whilst a 38 000 DWT opening in Casablanca was fixed basis delivery Escoumins via Quebec to the UK-Continent at US$27 500. In the Mediterranean, a 39 000 DWT fixed from Nemrut Bay to the US Gulf at US$12 000 for the first 45 days and US$13 500 for the balance. In the South Atlantic, a large handy was rumoured to have been bid in the upper teens for a trip from Recalada to North Coast South America. In Asia, sentiment was also showing signs of positivity but at present limited information had yet to surface. Period activity was said to be limited as owners look to maximise income from the present improved markets, although a 35 000 DWT opening in Mundra was fixed for two to three LL at US$9900.

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