Baltic Exchange: Maritime market highlights 10-14 March

Capesize

The Capesize market experienced a week of gradual strengthening, with positive momentum building from midweek onwards as activity increased and tonnage tightened in both the Pacific and Atlantic basins. The BCI 5TC experienced a steady rise throughout the week, before a slight correction saw it close at $23,697, up from $20,544 at the week’s start. In the Pacific, consistent activity from all three miners, improved coal cargo volumes, and a solid flow of operator-controlled cargoes supported the market. Rates on C5 climbed steadily, peaking at $11.58 before correcting to $10.665 by the week’s end. The South Atlantic saw a persistently short tonnage list of ballasters driving C3 levels from $22.50 to around the $25 range for mid-April dates, with fresh cargo providing additional support.  The North Atlantic remained relatively quiet, with limited fresh cargo and minimal fixing activity. However, a couple of significant fixtures indicated stronger rates, including a transatlantic and a Fronthaul fixture reported at around $43,000 for 75 days. Yet, some questioned whether these levels could be repeated.

Panamax

The Panamax market erupted into life midweek with rates surging as a strong push in the Atlantic market, both South and North America led the drive. Aided by a supporting FFA market, the period market kicked into gear with a raft of deals concluded at stronger levels, notably a Japanese built 82,000-dwt delivery Japan achieving $15,500 for one year’s employment. In the Atlantic, strong demand both minerals and grains, a tight tonnage count along with the uncertainty caused by USTR provided the perfect recipe for the strong surge in rates witnessed this week. Midweek witnessed a binge of fixing from EC South America and this in turn gave additional support to the Asia market that, up until that point, had been less vigorous despite robust demand from both NoPac and Australia supporting improved rates, however the week ends with many with time on their hands pausing, but for the moment the immediate outlook appears firmly in owners favour.

Ultramax/Supramax

A more positive week for the sector although there was stronger demand from the Asian arena, the Atlantic remained somewhat of a mixed affair. The recent tariff on and off causing a cautious approach for many. The US Gulf was generally flat a 63,000-dwt fixing a trip from US Gulf to India with pet coke at $17,000. Further south, a 61,000-dwt was fixed basis delivery Santos for a trip Bangladesh-China in the upper $12,000s plus upper $200,000s ballast bonus. A rather positional feel from the Continent-Mediterranean, a 57,000-dwt fixing delivery Amsterdam trip via Continent to the Far East in the mid-teens. Asia, say stronger rates being discussed as the week progressed, A 63,000-dwt fixing delivery Cigading for a trip via Kalimantan redelivery WC India at $18,000. Backhaul activity was seen, a 63,000-dwt fixing delivery China for a trip to West Africa at $13,000. The Indian Ocean remained rather subdued although a 61,000-dwt was fixed delivery Tuticorin trip via South Africa redelivery China at $10,500.

Handysize

This week, the market exhibited a mixed performance, with modest fluctuations across both basins. The Continent and Mediterranean regions continued their positive trend, with rates slightly surpassing previous levels, indicating ongoing support. For example, a 39,000-dwt fixed a trip delivery Skaw to redelivery Morocco at $14,000. In contrast, the South Atlantic and U.S. Gulf markets remained sluggish, facing challenges with increasing tonnage and limited cargo availability. A 33,000-dwt open in Tema secured a trip from delivery Fazendinha to redelivery Italy with grains at $10,500. Meanwhile, in Asia, the market stayed robust, buoyed by a more balanced demand-supply dynamic, especially in Southeast Asia and the North Pacific, with several strong fixtures recorded. A 39,000-dwt vessel, open on March 19, fixed a trip from Guayaquil to Japan via Vancouver, carrying grains at $11,500.