The Baltic Exchange, the world’s independent source of maritime market data, has issued its report for the last week, 19-23 August 2024, to provide information of the bulk market performance.
Capesize
This week saw a strong and consistent upward trend in the Capesize market, with the Baltic 5TC index rising from $21,510 on Monday to settle at $23,645 by Friday. In the Pacific, activity was buoyed by the participation of all the major miners and an increase in coal demand from Australia, driving the C5 index up, despite a slight correction on Thursday. The Atlantic market, while initially quieter, gained momentum midweek, supported by stronger fixtures from South Brazil, West Africa to the Far East, and a notable Transatlantic fixture. Although market activity slightly levelled off towards the end of the week, overall sentiment remained positive, especially in later September dates from South Brazil, reflecting what brokers have described as a well-supported and active Capesize market.
Panamax
This week, the Panamax market experienced a continuous downward trend, with the Panamax timecharter average (P5TC) falling from $13,970 on Monday to $12,724 at the end of the week. The summer holidays contributed to a quiet start and despite more activity in the Pacific, the overall weakness in both the North and South Atlantic led to further drops in the overall index as the market struggled to find support reflecting the ongoing imbalance between supply and demand.
The Atlantic market remained under significant pressure throughout the week due to an oversupply of tonnage, especially off the Continent. Rates declined steadily, and with few new cargoes, there was little resistance shown. The Pacific market was relatively stable but saw only modest improvements, with the Indonesian round voyages remaining active but largely unchanged at around $12,000 and a scarcity of Nopac cargoes.
There was limited period activity reported with a modern 82,000 dwt vessel fixed for two years at region $17,000 and a 98,000 dwt vessel fixed for 12 months at mid-$15,000s.
Ultramax/Supramax
Another convoluted week for the sector that again could be described as positional. From the Atlantic the only bright area was the US Gulf, which saw demand return and tonnage availability becoming a bit restricted. A 61,000-dwt fixed a trip from here with redelivery Arabian Gulf – Japan at $28,500. Limited action from the South Atlantic, although a 63,000-dwt fixed delivery Santos for a fronthaul in the mid $17,000s plus mid $700,000s ballast bonus. Asia was also a mixed bag as demand tapered off as the week came to a close. At the beginning of the week, a 58,000-dwt fixing delivery Southeast Asia via Indonesia redelivery China in the mid $18,000s, but as it ended a 56,000-dwt fixed a similar run in the mid $15,500s. Limited demand from the Indian Ocean, with a 61,00-dwt fixing a trip delivery Southwest Africa via South Africa redelivery China at $21,000 plus $210,000 ballast bonus. It remains to be seen if these trends will continue as the summer holiday season for many comes to an end.
Handysize
Generally, a steady week, although some areas had softer undertones. The Continent-Mediterranean was described as positional as rates hovered around last done. A 34,000-dwt open Bremerhaven was fixed for a scrap run to the East Mediterranean at $11,000. From the Mediterranean a 37,000-dwt fixed delivery Black Sea for a trip to Algeria at in the mid $9,000s. Further erosion was seen from the South Atlantic with limited fresh enquiry and prompt tonnage availability growing. By contrast demand slowly returned to the US Gulf, a 39,000-dwt fixing delivery SW Pass to the West Mediterranean at $18,000. From the Pacific, another week when fundamentals changed little as rates seemingly remained steady whilst fresh enquiry trickled into the market.
