Dry Bulk Market: Capesize Market Weakened Last Week

The Capesize market experienced a steady decline throughout the week, marked by softening conditions across both the Atlantic and Pacific basins. In the Pacific, early week activity from the miners and operators saw some momentum, but as the Golden Week holidays began in Asia, rates quickly weakened, with an increasing tonnage list. The C5 index fell from $11.656 to $10.73 by Friday as miner participation and cargo availability dwindled. The South Brazil and West Africa to China markets remained busy, but there was a noticeable gap between bids and offers, leading to limited fixtures, and continued downward pressure on rates, with the C3 index dropping from $28.17 on Monday to end the week at $27.095. Meanwhile, the North Atlantic market saw intermittent activity, with fronthaul and transatlantic routes softening amid low sentiment. Overall, the market appears to be in a wait-and-see mode, with expectations for activity to pick up next week after Golden Week ends. The BCI 5TC saw a notable drop, ending the week at $26,897, down from $30,258 on Monday.

Panamax
A compelling week for the Panamax market, with limited action in the Atlantic and the North seeing a mid-week mineral push ex US East Coast to India and China, but this failed to inject any momentum to an ailing market. Asia was blighted by Golden Week and other Asian holidays, and despite some steady demand ex Australia and NoPac all week, this failed to make any profound impact and the market drifted. Fronthaul highlights included reports of an 82,000-dwt delivery Rotterdam trip via US East Coast redelivery India at $25,000 whilst in the south an 82,000-dwt delivery EC India agreed a rate of $13,250 for a trip via EC South America back to Far East. In Asia, reports of $13,000 being achieved a few times for NoPac and Australia round trips on index type tonnage delivery China/Japan. Again, a week of limited period activity, however reports emerged of an 82,000-dwt type delivery Japan achieving $17,000 for one year.

Ultramax/Supramax
A rather challenging week for the sector with rates in both the Atlantic and Pacific regions facing continued downward pressure. The South Atlantic and US Gulf continued to struggle with a lack of fresh inquiries and a growing tonnage list. A 66,000-dwt fixed delivery aps SWP redelivery Turkey with petcoke at $22,000. Across Continent and Mediterranean, with the overall sentiment being positional, the fixtures surfacing are indicating that rates were hovering around the last done. A 58,000-dwt fixed delivery passing Gibraltar via Continent redelivery West Africa at $15,000. The Pacific market also remained under pressure, with rates generally dipping below from previous levels across the region. A 54,000-dwt open North China was fixed trip to Indonesia with steel at $15,000.
In the period market, a 63,000-dwt open Qingdao fixed for 12 months at $16,000. Meanwhile, a 56,000-dwt open Dalian fixed for 3-5 months at $17,000 and 63,000-dwt open Yeosu was reported fixed for 4-7 months WW at $15,000.

Handysize
Generally, the market has seen a mixed affair this week. The Continent and Mediterranean markets have seen more support, with a noticeable pick-up in fresh demand and cargo coverage. A 40,000-dwt open Bejaia 1/2 Oct reported fixed delivery passing Canakkale redelivery US Gulf at $11,500. In contrast, the South Atlantic and US Gulf continued to be a tough environment for owners, with negative sentiment prevailing and few favourable options available. A 38,000-dwt open Rio Grande 27 Sep fixed delivery APS Imbituba for a trip to UK / Continent with sugar at $13,000. Pacific market remained relatively balanced despite the usual disruptions from holidays and a shrinking cargo book. A 28,000-dwt open Philippines fixed via SE Asia to Indonesia at around $11,000. On the period side, a 40,000-dwt open Japan was placed on subjects for short period in the high $15,000.
Source: Baltic Exchange