Capesize

The Capesize market ended the week on a firmer note after a shaky start, recovering well from early pressure caused by uncertainty in Guinea. The announcement of revoked mining licenses initially rattled sentiment, but the market quickly regained composure. The Pacific basin emerged as the strongest performer, underpinned by consistent miner and operator demand. The C5 index climbed steadily from the high $7.00s early in the week to reach $8.55 by week's end. Meanwhile, the South Atlantic gained traction midweek, with mid-June laycans repeatedly fixing in the mid-to-high $18s, supported by fresh cargo flow from a major miner. However, the North Atlantic lagged behind, dampened by weaker fronthaul sentiment and a subdued transatlantic market. Initial weakness gave way to a modest recovery, with the BCI 5TC average rebounding slightly after early losses to close Friday at $15,757, just a touch above Monday’s opening.

 

Panamax

Another softer week for the Panamax market as owners felt the recent pressure continue across all basins. Owners’ resistance was hard to find with early tonnage and ballaster tonnage continuing to discount. The P2A route hovered in the $17,000 mark all week, with several deals concluded from NC South America to far east. Activity ex EC South America was described as positional, but essentially returned flat for index arrival dates, average levels hovered around the low-mid $12,000 levels all week. Asia returned good demand overall, mixed views on rates to start the week as South America failed to impact or ingest some of the earlier tonnage, as a result rates eased over the week with the tonnage count surpassing any demand. Rates as high as $13,000 and in the $12,000’s were seen for various Australia round trips but eased back as the week developed, with rates now more akin to $10,000/low $10,000’s, whilst much of the Indonesia demand was absorbed by smaller/older tonnage at 4-digit levels.

 

Ultramax/Supramax

The week started off certainly from the Atlantic on a slightly more positive note, but as the week closed some of this sentiment had eroded slightly. Support was seen from the US Gulf, a 63,000-dwt fixing a trip from Houston to India with petcoke at $19,750. The South Atlantic was finely balanced with demand for trans Atlantic runs, however fronthaul business remained lacking. The Continent-Mediterranean was positional although some felt a bit more demand was seen from the Continent. The Asian arena was also a bit positional. Demand remand from the north for both trans Pacific rounds whilst fresh enquiry was lacking from the south. A 66,000-dwt open North China fixing at $11,000 for the first 45 days thereafter at $14,500 for a trip to the US Gulf. Further south, a 58,000-dwt fixed from South China via Indonesia redelivery Thailand in the mid $10,000s. The Indian Ocean remained rather subdued, a 62,661 2020) was heard fixed from South Africa to EC India at $16,000 plus $160,000 ballast bonus. Period activity was limited although a 64,000-dwt open Thailand was heard fixed for short period in excess of $14,000. 

 

Handysize

It was generally a positive week, with freight rates increasing across most loading areas. The Continent-Mediterranean region continued to show steady improvement, with market sentiment remaining largely positional. For instance, a 40,000-dwt were fixed for delivery Antwerp trip via Norway to redelivery Brazil at $10,500 for 45 days $14,500 thereafter. The South Atlantic and US Gulf markets were supported by limited vessel availability and healthy cargo demand. Notable fixtures included a 38,000-dwt vessel fixed delivery Rio Grande to redelivery Venezuela at $16,000, and a 37,000-dwt fixed delivery Brunswick to redelivery Immingham with wood pellets at $13,750 plus a $20,000 GBB. Meanwhile, the Asian market also remained firm, particularly in Southeast Asia and the North Pacific, where tightening tonnage prompted charterers to raise their bids. A 40,000-dwt heard fixed delivery Koh Sichang redelivery Rizhao or Qingdao with concentrates at $11,750.