Capesize

The market gathered momentum through the week, with improving sentiment and stronger fixing activity across both basins driving a broad-based recovery. The Pacific initially remained relatively subdued, with C5 fixtures holding around the high $13s to $14 as miners maintained a measured approach. However, increased competition for tonnage saw rates push through the $14 mark midweek, eventually reaching the low $15s by Thursday, reflecting a noticeably stronger market. Towards the close, the Pacific eased slightly, with activity becoming particularly limited and talk emerging of offers slipping back below the $15 mark. The Atlantic followed a similar trajectory, with the South Brazil and West Africa to China markets gaining considerable traction as fixing activity intensified. C3 rates advanced from the mid-$34s to the high $36s, supported by a gradually tightening ballaster list. With most end-November cargoes covered, attention has increasingly shifted towards December dates. North Atlantic sentiment also improved, supported by stronger Fronthaul fixtures and fresh enquiry. Overall, sentiment improved considerably, with the BCI 182 5TC climbing from $33,795 on Monday to $37,420 by Friday, with gains across all major routes and a more positive outlook heading into the coming week.

 

Panamax-Kamsarmax

The Atlantic remained the weaker basin throughout the week, with limited cargo enquiry and a growing tonnage count keeping sentiment firmly in charterers’ favour. Transatlantic demand remained thin, while subdued grain and mineral activity provided little support to rates. An 82,000-dwt fixed a transatlantic grains round trip at $17,500, while a 79,000-dwt fixed basis delivery East Coast South America for an Atlantic trip at $25,000. Fronthaul conditions were similarly pressured, particularly from EC South America, as continued ballasting from the Indian Ocean added to tonnage availability. However, improving demand towards the end of the week offered some encouragement, with an 82,000-dwt fixing retroactively from East Coast India in mid-October at $17,000 and a 75,000-dwt fixing basis delivery East Coast South America at $18,000 plus an $800,000 ballast bonus. The Pacific also softened, with limited North Pacific activity and reduced EC Australian requirements weighing on sentiment. An 82,000-dwt and an 84,000-dwt both fixed North Pacific round trips at $20,000, while a 75,000-dwt fixed an East Coast Australia round trip at $17,000. Indonesian demand provided some stability but remained insufficient to offset wider pressure, with a 77,000-dwt fixing a shorter Indonesia to South China trip at $17,000. Overall, owners faced increasing competition for employment, with the P5TC declining steadily throughout the week as rates remained under sustained pressure.

 

Ultramax/Supramax

The Atlantic was negative this week, with rates dropping in the US Gulf as grains and petcoke stems became scarce. A 64,000-dwt fixed a wood pellets stem to the UK at $31,000 and a similar type was fixed with petcoke via Panama Canal to China at $31,250, but another 63,000-dwt fixed a grains stem to China via Cape of Good Hope at $28,500, which was apparently the only direction the vessel was able to consider. Further south, the market was under pressure from the larger Panamax vessels with a 63,000-dwt fixed from Recalada to the East at $19,750 plus $975,000 ballast bonus at the beginning of the week, and a Japanese built 61,000-dwt reported fixed to Southeast Asia at $18,250 plus $825,000 ballast bonus later in the week. Rates on the Continent are still good, but the highs for scrap cargoes have passed with rates now said to be low $30,000’s, and the East Mediterranean was more active than the West. Asia remained firm amid lighter trading with the North still the driving force with a 63,000-dwt ex dry dock China fixed to West Africa with generals at $28,000, whilst the South Pacific was more subdued this week. The Indian Ocean was also quieter, and rates softened with a 61,000-dwt fixed basis Kandla for a trip Chittagong at $16,000 with aggregates. Period activity again centred in the firmer areas with a 63,000-dwt open South China fixed for minimum 3 to about 6 months at $24,000, with first employment a trip to the Maldives.

 

Handysize

The market was subdued all week, and the HS7TC average finished the week slightly below last week’s close, amid positional trading. EC South America remained the firmest area of the Atlantic, but rates seemed to plateau amid slow trading, whilst the US Gulf dropped in the second half of the week with sources saying trips Skaw-Passero were now bid in the mid-teens, whilst a nice 40,000-dwt fixed basis SW Pass for a trip Atlantic Colombia at $16,000. The Continent remained firm due to a shortage of tonnage nearby, but the Mediterranean suffered due to a lack of fresh enquiry. There was limited news from the Pacific, however, the North was well supported and rates nudged up during the week, with a 39,000-dwt open South Korea fixed to West Coast Central America at $19,000. Period activity became positional in uncertain conditions, with a 37,000-dwt open Paranaguá fixed 5 to 7 months redelivery within the Atlantic at $20,800.