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Dry Bulk Shipping: Capesizes Still Under Pressure

Capesize
The Capesize market faced a subdued week, with the BCI 5TC steadily declining from $7,946 on Monday to reach $6,977 by Thursday. However, a modest recovery towards the weeks end lifted the 5TC to $7,252. The Pacific market remained under pressure, exacerbated by the Chinese New Year holidays, which significantly reduced fresh cargo availability. While a handful of miners were active, fixtures remained sparse, and rates softened. However, late in the week, the market saw a slight rebound as two miners re-entered the market, lifting the C5 index up to close at $6.220. The South Atlantic showed more resilience, with a steady flow of cargo early in the week. Reports of firmer bids emerged, particularly later in the week, although this was not enough to bolster the market. The C3 index saw marginal movements, hovering around the low $17.00s. Meanwhile, the North Atlantic faced a thinning cargo list and a lengthy tonnage supply, which led to declining rates across C8 and C9 routes.

Panamax
A lethargic week, with the market being curtailed by the Asian holidays. In the Atlantic, a North/South divide prevailed, with EC South America claiming the headlines as activity slowly picked up for March arrivals. Basis February arrival, index type tonnage fixing at between $12,200 plus $200,000 and $12,750 plus $275,000 ballast bonus achieved several times basis delivery arrival load port EC South America redelivery Singapore-Japan. By comparison, demand in the North was slow with little trans-Atlantic demand playing out and many of the ballasters continuing to price competitively for NC South America grain business. In large parts of Asia, it was a shortened week which created a little confusion. However, as we approached the end of the week, firm sentiment had slowly returned with a mix of rates seen for the different trips including reports of a scrubber fitted 82,000-dwt delivery Korea for a NoPac round trip at $7,250. Limited period rumours but included an 85,000-dwt delivery China fixing basis one year index linked at 117% to the BPI timecharter average.

Ultramax/Supramax
With the widespread Lunar New Year holidays during the week, it was a very lacklustre affair. Rates dropped in most areas as vessel supply outweighed demand. Although in the Atlantic, some felt a bottom may have been reached as the week closed, but it remains rather positional. A 58,000-dwt was heard fixed delivery US Gulf for a trip to India at $11,000. For trans-Atlantic runs a 56,000-dwt fixed delivery US Gulf redelivery Morocco at $9,000. Elsewhere the market struggled to find traction, a 57,000-dwt fixing delivery Egypt for a trip to West Africa at $4,750. Asia also felt the lack for demand and very little activity surfaced. Rates struggled in the Indian Ocean, despite being relatively active. A 63,000-dwt fixed delivery Saldanha Bay for a trip to China with a flat rate of $10,000. Whilst a 58,000-dwt fixed delivery Salalah trip to Vietnam at $6,000. Period activity remained limited; a 61,000-dwt open China end January fixed for 12 months redelivery worldwide at $10,750.

Handysize
As anticipated, the market has seen very limited activity across the Atlantic and Asian basins due to holidays in Asia. Market sentiment in the Continent and Mediterranean regions remained largely unchanged, the downward trend still prevailing. A 34,000 fixed delivery Otranto trip redelivery Tema with fertiliser at $7,100. The U.S. Gulf and South Atlantic saw some fresh demand but it remains insufficient to absorb the excess tonnage in the region, with rates still pressured below the last done. A 39,000-dwt heard fixed delivery SW Pass trip redelivery West Coast South America at $12,000 and a 34,000-dwt fixed delivery ECSA trip redelivery Continent at $10,250. With the Lunar New Year in full effect this week, activity in the Asian market has been minimal. As nearly all players are away from their desks, the market appears to be on hold across all loading areas. A 40,000 heard fixed delivery Fukuyama 4/7 Feb trip redelivery Pasir Gudang with slag at $3,250.
Source: Baltic Exchange

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