Capesize
The market enjoyed another constructive week, extending the recovery that accelerated at the end of the previous week despite a brief period of consolidation midweek. Overall sentiment remained positive, supported by good shipping volumes, continued mining activity, and improving confidence across the Pacific and Atlantic basins. The Pacific continued to provide essential support, with consistent participation from major miners and a steady flow of Western Australian iron ore, supplemented by coal shipments from the east coast of Australia. While interest rates fell briefly after rising at the start of the week, the correction proved short-lived as rapid tonnage attracted bonuses and miner inquiries quickly regained momentum. Weather-related disruption in the Pacific Ocean also supported the market by tightening vessel availability. By the end of the week, C5 had recovered from its temporary weakness at the highs of $12 to end the week at the lows of $13, reflecting stronger sentiment. The Atlantic also enjoyed a positive week. Demand from southern Brazil and West Africa to China remained strong, with continued C3 fixing activity reported in the mid-$31s to $33s by the end of the week. While the North Atlantic remained relatively calmer, tightening loads supported stronger transatlantic and direct earnings later in the week.
Panamax Kamsarmax
It was a week of unification. Prices improved a little, but the market didn’t move forward much. There has been a lot of activity in the North Atlantic, but there seems to be a clear area now, with the market waiting to see what’s next. Mineral haulage from the US East Coast saw very high bids, with the charterer ultimately deciding to take 82,000 dwt short term at $30,000 from the continent rather than pay the mid/high $30,000 for a single voyage to India. Activity from the North Coast of South America was also a big support with 82,000 dwt from the continent fixed at $30,750 loading grain to the Far East at the weekend. East Coast South America operations were concentrated in first half August locations with 81,000 dwt fixed at $20,000 for delivery in the Sunda Strait for a grain voyage, but there was very little appetite on the part of charterers to base later dates at current levels. The Asian market remained steady despite a mid-week spell of repairs, with NoPac and Australia the main movers, with a flat flight of 82,000 dwt seeing Japan delivered via NoPac with grain priced at $20,000. Southeast Asia remained lackluster with smaller Panamax mainly picking up limited demand, but 82,000 DWT set Hong Kong delivery via Indonesia to South Korea at $13,600 earlier in the week.
Ultramax/Supramax
Overall, the market generally maintained last week’s levels, with some improvement in certain areas, but the overall movement on prices was minimal and the 5TC average was only slightly higher than last Friday’s close of $21,153. The North American market continued to be a driving force with 63,000 dwt from the US Gulf to India with petroleum coal at US$38,500, and the Eastern Mediterranean market consolidated amid limited ton supply with 63,000 dwt placed on topics at US$18,000 for a voyage to West Africa. The South Atlantic was mixed and localized, some doing better than others due to the restricted payload list, with 58,000 dwt from West Africa anchored to load Owindo to India at $27,000. The Asian market was lackluster and continued to trend sideways with major support coming from the backlinks and the NoPac market with 64,000 dwt well described and steady at $19,250 for China delivery of the round grain voyage. Southeast Asia has seen a slowdown in demand, with uncertainty over the outlook for ships due to the typhoon making charterers wary. In the Indian Ocean, there was a slight uptick in Indian coastal trade with 64,000 dwt being fixed from the east coast of India to the west coast at $25,000.
Handy size
The market moved steadily lower during the week, with sentiment declining in both basins. On the continent and the Mediterranean, conditions opened calmly with levels remaining largely unchanged before a brief boost from scrap demand boosted interest rates slightly. It was heard that a 35,000-ton ship fixed from the Baltic Sea to the eastern Mediterranean at a price of $12,500. Across the South Atlantic and US Gulf, sentiment weakened as the week progressed, with a growing spot tonnage list, wide spreads between bids, and limited new inquiries, prompting owners and charterers to adjust their forecasts downward. A ship of 40,000 dwt was reported repaired from Recalada to North Brazil with grain worth US$22,500, while a ship of 37,000 dwt was repaired from SW Pass to Colombia Atlantic with grain for US$19,250. Asia followed a similar pattern, with the market remaining under pressure as tonnage continued to increase across key loading zones. Although some combinations were announced, overall trading activity remained subdued, and fundamentals showed little fundamental change. A firm delivery of a 38,000 ton vessel Penang via Bangladesh to Singapore was reported at a price of $17,250.
Source: Baltic Stock Exchange
