The Baltic Exchange, the world’s independent source of maritime market data, has issued its report for the last week, 21-25 October, to provide information of the bulk market performance.
Capesize
The Capesize market faced a persistent downturn this week, with the Baltic 5TC declining daily to end at $15,395, down $2,779 from Monday. In the Pacific, limited mining demand early in the week led to a softening in the C5 route, hindered by a growing tonnage list. However, there were slight rate improvements that surfaced midweek, supported by stronger FFA market. Meanwhile, the South Brazil and West Africa to China markets saw varied activity, with C3 bids around the low $20s, although by the end of the week a $20.85 fixture emerged on C3, showing some mixed resilience. The North Atlantic experienced significant pressure, with both transatlantic and fronthaul routes recording considerable declines, particularly impacting the C9 index, which saw notable dips. By week’s end, some fresh fronthaul cargo from EC Canada hinted at potential demand recovery in an otherwise subdued Atlantic basin.
Panamax
This week saw continued downward pressure across the market, with both the Atlantic and Pacific basins struggling to gain momentum. Early in the week, both regions experienced growing tonnage lists, leading to rate declines, particularly in the Pacific. The P5TC index dropped steadily, reaching $10,945 by Friday.
In the Atlantic, weak cargo availability and increasing vessel supply contributed to sliding rates. Although there was some grain activity from East Coast South America (ECSA), it failed to halt the downward trend, with rates at around $12,750 for a trip redelivery Singapore-Japan range. Meanwhile, the Pacific showed more resilience, supported by consistent demand for Indonesian routes with rates around $12,000 all week. By midweek, the market appeared to be searching for a floor, with some resistance from Owners in the East, while the North Atlantic remained particularly fragile. Despite a slight increase in grain activity towards the end of the week overall sentiment remained cautious, and further rate erosion is possible without an increase in cargo volumes.
There was some period activity with an 82,000-dwt fixed for 4/6 months at $14,500 and another reported fixed for 5/7 months at $15,000.
Ultramax/Supramax
It was a highly positional week. Those with vessels available in the US Gulf likely fared the best, as rates remained relatively strong, with Ultramax sizes seeing fronthaul rates in the mid $20,000s. However, the South Atlantic was a rather muted affair with tonnage availability growing and limited fresh enquiry. A 56,000-dwt vessel was fixed at around $12,500-$13,000, plus a ballast bonus of $250,000-$300,000 for a fronthaul. Slightly better demand was noted from the Continent, with increased scrap demand; a 60,000-dwt reported fixed delivery Antwerp, heading to the East Mediterranean at $21,000. In contrast, the Asian arena faced downward pressure, as tonnage supply exceeded demand in both the northern and southern regions. A 56,000-dwt fixed delivery Koh Sichang, making a trip via Indonesia redelivery in China at $13,000. Further north, a 63,000-dwt fixed delivery Japan, undertaking a North Pacific round trip with redelivery to Southeast Asia in the very low $13,000s. The Indian market appeared patchy, with a 56,000-dwt vessel fixed delivery EC India for a trip to China at $8,750.
Handysize
Generally, the market has seen a mixed affair this week. In the Continent and Mediterranean regions, there is a sense of stability, supported by a healthy cargo book especially increasing scrap orders. A 39,000-dwt open Rotterdam 21 Oct reported fixed delivery Skaw via Mukran for a trip redelivery Conakry with grains at $13,000. In the U.S. Gulf and South Atlantic region, market fundamentals remained strong and contributes a positive outlook with rates were edging slightly higher. A 38,000-dwt reported fixed for delivery South West Pass to redelivery West Coast South America at $17,500. A 40,000-dwt open Barranquilla was fixed delivery aps Santa Marta to redelivery Spain with coal at $15,000. Meanwhile, the Pacific market was showing softer sentiment due to increasing tonnage and limited cargo availability from the North Pacific and Australia. A 38,000-dwt open Qingdao was fixed via South East Asia to Continent / Baltic with steels at $13,800 for first 70 days than $16,000. On the period side, sources indicate that inquiry was generally limited this week, with operators showing reluctance to take on risks as we move into Q1.
