Baltic Exchange: Maritime market highlights 13-17 January

Capesize

The Capesize market experienced a mixed week, beginning strongly before losing ground as the days progressed. Monday saw the BCI 5TC rise to $13,391, driven by a pickup in Pacific activity and tightening tonnage in the North Atlantic. The Pacific market showed signs of recovery with increased miner activity and improved fixtures, narrowing the earnings gap between C3 and C5 routes.

The North Atlantic was bolstered by reports of a significantly stronger fronthaul fixture lifting sentiment. However, momentum slowed midweek. Despite steady cargo inflows, fixing volumes tapered off, and the market flattened out. By the end of the week, momentum faltered, Pacific activity remained subdued amid weather uncertainties developing off the coast of West Australia, while the Atlantic saw muted trading and a widening gap between the bid and the offer on C3. Overall, it was quiet end to the week with the BCI 5TC dropping $739 to $11,555.

Panamax

The Panamax market experienced a mixed and volatile week. After a slow start, there were signs of recovery by mid-week, only for activity to taper off again as the week closed. Despite some gains on specific trades, these improvements remain barely above operating costs. Additionally, with only a slight increase in period rates this week, the immediate outlook appears bleak, offering little reason for optimism.

The Pacific market saw some improvement with healthier demand in the north with the highlight being an 82,000-dwt able to achieve $9,250 for a North Pacific trip basis a Korea delivery. Further south, the Australian round trips were more akin to mid-high $6,000’s but market participants monitoring whether the North will assist to drive sentiment higher elsewhere too. As is customary this time of the year, plenty of period activity emerged, mid $12,000’s achieved a few times for 82,000-dwt types delivery China-Korea for short period, whilst the highlight being an 82,000-dwt delivery Korea fixed 5/8 months at $13,750 with a grain house.

Ultramax/Supramax

The general malaise in the sector continued throughout the week as limited fresh enquiry appeared, and prompt tonnage remained readily available. Rates across the board slid down further as charterers remained in the driving seat. Limited cargo saw a 64,000-dwt fixing from the US Gulf to WC South America in the mid $19,000s. From EC South America, a 58,000-dwt fixed a trip from Santos to Egypt at $12,750. The Mediterranean similarly lacked impetus, a 53,000-dwt fixing from Spain to West Africa at $8,000. From the Indian Ocean, demand remained poor, a 60,000-dwt fixing from South Africa to China at $12,250 plus $125,000 ballast bonus. In Asia, a 55,0000-dwt open N China fixed an Indonesian round in the mid $4,000s. Further south, a 56,000-dwt open Thailand fixed a trip via Indonesia redelivery China at $4,000. Period action remained patchy, a 60,000-dwt open Dammam fixing 5-7 months trading at $12,250. With the upcoming Chinese New Year, fundamentals seem hard to change.

Handysize

Another challenging week for the sector with rates in both the Atlantic and Pacific regions facing continued downward pressure. The Continent and Mediterranean market also remained under pressure due to insufficient support, there was a noticeable shortage of scrap cargoes and a lack of eastbound trips from the Black Sea, resulting in rates slightly lower than previous levels. A 39,000-dwt fixed delivery aps Black sea redelivery US Gulf with steels at $5,500. In the South Atlantic and U.S. Gulf, sentiment remained subdued, with tonnage count seeming to maintain its length, putting further pressure on rates. A 39,000-dwt open Veracruz 25/30 Jan fixed delivery SW Pass trip East coast Mexico with grains $10,500 and a 35,000–dwt fixed delivery aps Recalada redelivery Vitoria at $10,500.  Meanwhile, the Asian market maintained its negative tone, showing no signs of recovery.  A 37,000-dwt open Japan fixed delivery aps Tianjin trip redelivery SE Asia at $6,000.