Baltic Exchange: Dry Bulk Report – 25

Capesize

The Capesize market trended downward this week, with sentiment consistently softening, particularly in the Pacific. C5 rates came under pressure as iron ore volumes from West Australia declined. While coal cargoes from East Australia offered some support, they weren’t enough to offset the broader weakening. C5 rates steadily fell from US$11.00 early in the week to the low-mid US$9.00s by week's end. In the Atlantic, the week began on firmer footing, with limited tonnage and a steady cargo flow sustaining rates. However, as the week progressed, both trans Atlantic and fronthaul routes saw offers ease. On the South Brazil to China (C3) route, a clear pattern of backwardation emerged, with rates slipping from the high US$26.00s to the low US$20.00s. Overall, the week marked a reversal of recent gains, with the BCI 5TC shedding over US$7000 to settle at US$23 879 by Friday.

Panamax

A subdued week for the Panamax sector. Trans-Atlantic trades were few and far between, and a general decline became evident in both grain and mineral demand in the basin. EC South America returned a contrasting week with some mixed rates reported, limited activity overall but P6 index dates appeared well balanced whilst first-half July arrival dates began the week on a firm footing only to weaken as limited demand pitted against an increased tonnage count undermined any potential upside in rates. Typically, midweek fixtures for index arrival dates hovered between US$11 500 and US$13 000 basis 82 000 dwt types delivery India-SE Asia range. The Asian market continued to ease throughout the week, with support hard to come by as the tonnage count continued to grow, and with limited enquiry ex NoPac mineral demand ex Australia and Indonesia returned insufficient to prevent the slow erosion of rates in the arena. On the period front, there were reports of an 82 000 dwt delivery Taiwan agreeing US$11 000 basis 6/8 months trading.

Ultramax/Supramax

A rather positional week overall for the sector. The Atlantic saw better demand, a 58 000 dwt fixed delivery SW Pass for trip to EC Mexico at US$21 000. However, as the week closed this upward pressure seemed to be easing slightly. The South Atlantic remained active, a 63 000 dwt fixing delivery Recalada for a trip China at US$14 000 plus US$400 000 ballast bonus. By contrast the Continent-Mediterranean lacked much impetus and rates remained rather subdued. A rather slow start from the Asian arena although as the week progressed better levels of inquiry were seen from the NoPac and Indonesia. However, with aa good amount of prompt tonnage in the Indian Ocean rates remained in check. From the north, NoPac rounds from China for the 63 000 dwt were around the mid US$12 000s whilst from the south, a 56 000 dwt fixed a trip from SE Asia to China in the low US$10 000s. The Indian Ocean lacked impetus, a 61 000 dwt fixed a trip from the Arabian Gulf to Australia with steels billets at US$9500.

Handysize

This week, the market showed varied trends across the regions. In the Continent and Mediterranean, conditions remained soft with limited fresh inquiries. A 32 000 dwt open Tema 20/24 June fixed for a West Africa coastal trip in the mid/high teens. In contrast, the South Atlantic and U.S. Gulf regions maintained robust activity, supported by consistent fresh demand. A 33 000 dwt ballasting from West Africa was fixed delivery Recalada for a trip to the Continent at US$17 500. Meanwhile, a 37 000 dwt was fixed delivery Palm Beach end June via U.S. Gulf redelivery UK-Continent with wood pellets at US$18 000. The Asian markets remained quiet, with reports of longer tonnage list in Southeast Asia and the North Pacific. Despite this, rates stayed largely steady. A 34 000 dwt vessel was fixed on delivery Hong Kong for a Far East redelivery at US$9000. On the period front, interest remained limited. A 28 000 dwt vessel was reported fixed from delivery Southeast Asia for 4-6 months period at US$9650.

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