The Baltic Exchange provides an update on the Dry Bulk markets for Week 13. Information originally sourced from the Baltic Exchange.
Capesize
The Capesize market started the week on a firmer note but gradually softened as activity failed to gain momentum. The BCI 5TC began positively at US$22 311 but declined steadily, closing the week at US$20 503. In the Pacific, initial optimism driven by fresh cargo and miner activity was quickly overshadowed by a buildup of tonnage, leading to a steady decline in rates. Offers on C5 slipped from US$9.30 early in the week to US$8.65 by week's end, with TC rates struggling to hold above the US$20 000 mark. In the Atlantic, sentiment initially supported by tight tonnage in ballast weakened as softer fixtures emerged, particularly on the South Brazil and West Africa to China routes. C3 levels, initially in the high US$25s, steadily eroded to the very low US$23s, for index dates, with little resistance from market participants. The North Atlantic saw some support from fronthaul activity, particularly with West Africa stems, however, trans-Atlantic cargo remained scarce, adding to the bearish tone.
Panamax
A solid week for the Panamax market, as both basins saw sizeable gains. In the Atlantic, an active week saw NC South America as the common driver for both fronthaul and trans-Atlantic demand. US$20 000 was seen concluded on 82 000 dwt tonnage delivery Jorf Lasfar for a trip via NC South America redelivery Fareast, whilst further South, rates traded at contrasting levels dependent on date arrivals, voyage cargoes were seen trading at a discount to P6 equivalent but solid demand throughout April into May helped to supported timecharter rates overall. The Pacific market rose steadily throughout the week buoyed by decent demand both ex NoPac and Australia the former seeing rates concluded at US$15 000 on several index type units, activity ex Indonesia remained steady rather than spectacular but with firm levels available trips into India, rates for the P5 route gained circa US$1800 week on week as tighter tonnage impacted. Limited period activity, rates varied between US$14 500 and US$16 500 for 82 000 dwt types for short period.
Ultramax/Supramax
A rather uneventful week for the sector as the political uncertainty caused a more cautious approach. The Atlantic generally remained steady although there was a more positive feel from the Continent-Mediterranean as brokers spoke of better levels of enquiry. The US Gulf remained relatively flat as brokers were saying rates remained in the mid-upper teens for fronthaul ultramax. The South Atlantic again was finely balanced although a 63 000 was heard fixed delivery Recalada trip to Egypt at US$18 000. Demand remained from South Africa, a 64 000 fixing delivery Lagos via Saldanha Bay trip China at US$15 000. Otherwise, the Asian arena lost ground as sentiment remained negative. An ultramax was heard fixed delivery Far East for a NoPac round in the mid US$13 000s. Otherwise a 64,000 fixed delivery Yangzhou for a trip to Bangladesh at US$16 000. Backhaul business was a little subdued although a 52 000 was heard fixed basis delivery Jingtang trip to the Mediterranean at US$15 000. Period activity was limited although a 57 000 dwt open Hong Kong fixed for 1 year’s trading in the US$13 000s.
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 orders. For instance, A 33 000 dwt fixed for delivery Rotterdam trip to redelivery West Mediterranean with grains at US$14 000 for Morocco and at US$15 000 for Algeria. In the South Atlantic and US Gulf, market fundamentals remained generally slow. A 39 000 dwt heard fixed for delivery Recalada to redelivery Salvador-Fortaleza range with grains at US$14 750. Meanwhile, in Asia, the market remained healthy, with a steady demand-supply balance, particularly in Southeast Asia, several strong fixtures reported. A 38 000 dwt open Villanueva 27 March onward heard fixed via Dampier to China with salt at US$13 300. Period activity was limited, although a 28 000 dwt open North China fixed 3/5 months trading at US$10 350.
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