Baltic Exchange: Dry Bulk Report – 26

Capesize

The Capesize market experienced a marked decline this week, with sentiment steadily weakening amid persistently low activity across both the Atlantic and Pacific basins. A key factor was the prolonged absence of all major C5 miners in the Pacific, which led to mounting vessel supply and further dampened sentiment. As a result, C5 fell sharply by week’s end to mid-high US$6.00 levels, down significantly from recent highs of US$10.00–US$11.00. While East Coast Australia coal cargoes offered some support, it was insufficient to offset the lack of iron ore activity. In contrast, the South Brazil and West Africa to China markets saw sporadic improvements, but momentum was inconsistent and fixing levels steadily eroded, with C3 rates dipping into the very low US$20.00s. The North Atlantic showed more stability, supported by fresh cargo and a relatively balanced tonnage list, although fixtures were limited and rates softened towards the end of the week. Overall, the BCI 5TC shed US$4959, dropping from above US$23 000 to settle at US$18 408.

Panamax

A compelling week in the Panamax market. The North trans-Atlantic runs providing numerous points of discussion, with wide ranging views on where true market value lay as West Med v Continent deliveries differentiated somewhat, however the overriding sentiment on the week continued to be positive. An active week too ex-South America, above index rates were achieved for pre-index dates arrival, whilst there returned only a brace of second half July arrival deals concluded, generally basis delivery APS load port around the US$15 500 + US$550 000 mark. The Asian basin saw decent volume ex-Australia and towards the end of the week ex NoPac, circa US$13 000 the mean average for the 82 000 dwt types basis index duration trips, whilst ex Indonesia and with tight tonnage count persisting in the south rates improved around US$1000 across the week to close around the US$11 750 mark. Limited period activity of note but included reports of a 95 000 dwt delivery Japan achieving US$11 250 basis 4/7 months.

Ultramax/Supramax

Overall, the sector was described as positional over the last week. The Atlantic saw mixed blessing for owners’ as limited fresh enquiry from the US Gulf led to a drop in rates, at the beginning of the week a 58 000 dwt was reported fixed delivery Houston for a trip Nigeria at US$20 000. However, activity remained from the South Atlantic, although fixing information was limited. The Asian arena fared better, as increased demand from Indonesia and the NoPac saw positive sentiment return to what has been a rather dull period. A 63 000 dwt fixing delivery Singapore trip via Indonesia redelivery China in the high US$13 000s. Whilst from the NoPac, a 58 000 dwt open China fixed a round voyage redelivery China at US$12 000. The Indian Ocean saw slightly better demand from South Africa, a 63 000 dwt fixing delivery Port Elizabeth trip to China with manganese ore at US$14 000 plus US$140 000 ballast bonus. Period action remained, a 63 500 new building fixing ex yard China in the mid to high US$13 000s for a year’s trading.

Handysize

This week, the market saw a mixed performance with modest shifts across both basins. The Continent and Mediterranean regions remained subdued, with rates slipping below previous levels as the soft trend persisted. A 35 000 dwt heard fixed delivery Canakkale via CVB to the West Mediterranean with grains at around US$6750. In contrast, the South Atlantic maintained its momentum, though the US Gulf market slowed toward the weekend, showing signs of weakening support. Notable fixtures included a 38 000 dwt open Santa Marta fixed delivery Barranquilla redelivery ARAG with metcoke at US$17 500 and a 39 000 dwt fixed delivery Mobile redelivery Continent at about US$20,000. In Asia, market conditions remained steady, with a balanced cargo-to-tonnage ratio keeping rates largely flat. A 35 000 dwt vessel was fixed from Phu My for a South China to Southeast Asia trip with iron ore at US$12 500. Period interest was relatively active in both basins. A 38 000 dwt open in Houston was placed on subjects for a short period, while a 40 000 dwt newbuilding open in Hong Kong was fixed on a period basis at an index-linked rate of 118%.

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