Capesize

The market experienced a gradual softening over the course of the week, with sentiment increasingly defined by the growing divergence between a relatively resilient Pacific and a subdued Atlantic basin.

While the BCI trended lower overall, the Pacific remained the key source of support, underpinned by consistent miner participation and a healthy volume of operator-controlled cargoes on C5. All three major miners were active throughout much of the week, allowing rates to recover from the low $14s into the mid/upper $15s by the latter stages.

In contrast, the Atlantic struggled to generate momentum. South Brazil and West Africa to China activity remained sporadic, with limited enquiry for prompt index dates and softer sentiment persisting across both C3 and North Atlantic routes. Although the underlying South Atlantic supply picture remains constructive, with ballaster numbers still relatively tight, demand remained concentrated towards second-half June cargoes, limiting immediate upside. The North Atlantic stayed under pressure throughout, as available tonnage continued to outweigh demand, particularly on transatlantic business.

Panamax-Kamsarmax

A poor week for the sector as cargo volume eased in many areas. Brokers said that there was a plentiful supply of prompt tonnage in the north heaping downward pressure on rates. The South Atlantic also lacked fresh impetus and some preferring to use the better priced ultramax size to cover their requirements.

An 82,000-dwt was heard fixed delivery SE Asia end May for a trip via EC South America redelivery Singapore-Japan at $21,500. The lack of enquiry from South America in turn put added downward pressure on owners with vessels open in SE Asia. As options slowed from the lack of Indonesia cargo and a slowing of interest from both the North Pacific and Australia.

From the south, a 75,000-dwt fixed basis passing Taiwan trip via Indonesia redelivery Vietnam at $20,750. Limited Pacific enquiry saw an 82,000-dwt fixing delivery Hong Kong via East Australia, redelivery South China, at $22,000. Period activity was very slow, but a 82,000-dwt open SE Asia fixed 2 to 3 laden legs, redelivery Singapore-Japan, at $24,000.

Ultramax/Supramax

It was a week of mixed fortune for the sector. The Atlantic seemingly remaining the healthier option from an owner’s perspective. As the week progressed, some felt fronthaul activity was stronger from the US Gulf with the upper $20,000s being discussed.

The South Atlantic remained stable, an ultramax fixing in the upper $17,000s plus upper $700,000s ballast bonus for a trip to China. Brokers also said that better levels of enquiry were seen from the Continent-Mediterranean, a 56,000-dwt fixing delivery East Mediterranean, redelivery US East Coast, in the mid $13,000s.

In Asia, demand was subdued as demand from both South Asia and the North Pacific saw tonnage availability increase. That said, backhaul demand was fairly stable, a 63,000-dwt open CJK fixing a trip to West Africa at $22,500. In the south, a lack of fresh enquiry saw a 61,000-dwt fixing via Indonesia, redelivery China, in the $18,000s. Period was an alternative, a 63,000-dwt open Mediterranean for 8/10 months trading redelivery worldwide at $19,600. 

Handysize

The Handy market softened overall this week. In the Atlantic, the Continent and Mediterranean remained quiet and subdued, while the South Atlantic weakened notably as fundamentals deteriorated. A 34,000-dwt vessel open Barbados fixed for a trip from Vila do Conde to the Far East in the low $20,000s. The US Gulf was relatively steady but lacked meaningful fresh demand, with fixtures generally concluded at previously established levels.

A 37,000-dwt vessel open Puerto Limón fixed for a grain trip from SW Pass to the UK-Continent at $16,000. Asia was the most resilient region, supported at times by a tighter prompt tonnage and a steady flow of cargoes, although activity remained limited and any rate gains were difficult to sustain. A 37,000-dwt vessel open Kobe on 20/21 May was reported fixed for a trip to South in the $17,000s.