Capesize
This week began on a positive note, with the BCI 5TC increasing significantly by $2,881 to reach $31,438. Early in the week, the Pacific market saw significant activity, with increased participation from all of the miners and rising rates. However, the latter part of the week experienced a downturn due to increased tonnage availability and reduced coal demand, leading to a significant drop in the C5 index to $10.28 on Friday. The Atlantic market, previously buoyant with strong bids for end July loaders from south Brazil and west Africa to the Far East, saw limited activity as index dates shifted into August, resulting in a rate adjustments and weaker fixtures. Overall, the week started strong but ended on a softer note, reflected in the decline of the BCI 5TC, which lost $3,746 over the course of the week to close at $27,692.
Panamax
It has been another week that saw further significant losses. A similar pattern emerged in both basins, owing predominantly to a lack of mineral demand in the Atlantic basin and little fresh cargo emerging from Indonesia and NoPac in Asia. Transatlantic rates fell sharply to circa $11,000 BPI type whilst reports had a 79,000-dwt delivery Gibraltar achieving $10,750 for a trip via NC South America redelivery Skaw-Gibraltar. Despite decent volume ex Australia, Asia lacked any meaningful cargo both in the south and the north. Consequently, rates came under pressure from said origins, with an 82,000-dwt delivery Korea agreeing $12,000 for a NoPac round trip, whilst smaller/older types absorbed the minimal demand ex Indonesia $13,000 the mean average on the week for route P5, highlighting the lack of support. There was limited period activity, although an 84,000-dwt delivery Singapore-Japan accomplished 117% of the BPI timecharter average for one-year period.
Ultramax/Supramax
A rather dull week for the sector as rates and demand fell away in most areas. The only bright point seemed to be the US Gulf, which, despite the holiday, saw better demand and the Ultramax size seeing in the mid-upper $20,000s for trips to Asia. Elsewhere, limited fresh enquiry saw vessels struggle from the Continent-Mediterranean, although a 56,000-dwt fixed a trip delivery central Mediterranean via the Black Sea to the Far East in the low $20,000s. From Asia, limited cargo from the south saw rates drop. A 56,000-dwt open Vietnam fixing an Indonesian round at $14,000. Further north, a 63,000-dwt open China fixed a trip to the US Gulf in the $12,000s. The Indian Ocean similarly lacked fresh impetus, with a 56,000-dwt fixing delivery Maputo trip WC India at $16,500 plus $165,000 ballast bonus. There was little appetite for period cover and it remains to be seen how the summertime feel might change.
Handysize
A week of minimal visible activity across both basins in the handy sector. In the Atlantic, a general lack of cargo availability set the tone. Whilst Independence Day celebrations in the US slowed activity towards the end of the week, a 36,000-dwt fixed from the Mississippi River to Chiile at $17,000, whilst a 38,000-dwt fixed from Atlantic Columbia to the Continent with coal in the $15,000s. A 35,000-dwt was rumoured to have fixed from SW Pass to Morocco in the $12,000s. Limited prompt enquiry in the South Atlantic led to a downward trend with a 36,000-dwt fixing from Fazendinah to Morocco with grains at $14,500, whilst a 43,000-dwt fixed from Recalada to Puerto Quetzal with grains at $23,500 both earlier in the week and, whilst numbers had continued to soften, many had hope positivity would return in the coming weeks with cargo availability rumoured to improve. In Asia, visible activity was also muted but sources spoke of a balanced market in general.
Source: Baltic Exchange
