Baltic Exchange: Dry Bulk Weekly Report

The market delivered a strong performance over much of the week, with sentiment and rates firming across both basins before a late-week correction tempered the rally. Early in the week, robust miner participation, healthy cargo volumes and tightening tonnage lists underpinned a steady rise in Pacific rates. C5 steadily climbed into the mid-to-high $8.00s. This momentum was mirrored in the Atlantic, where improving demand from South Brazil and West Africa to China saw C3 rates advance into the low $22.00s, supported by firmer owner resistance. The North Atlantic added further support, as firmer fixtures on transatlantic and fronthaul routes highlighted improving demand amid limited tonnage availability. However, the latter part of the week saw a clear shift in sentiment, led by a sharp correction in the Pacific. Reduced miner presence resulted in C5 rates retreating into the high $7.00s. Despite this, the Atlantic, including the South Brazil and West Africa to China markets, remained relatively resilient, suggesting the correction was driven more by sentiment than underlying fundamentals.

 

This week opened with a noticeably firmer tone across both basins, driven by improving demand and stronger rate ideas. In the Atlantic, transatlantic activity continued to strengthen early in the week, with grain employment maintaining a premium over mineral business and fronthaul enquiry remaining supportive. A clear tightening of prompt tonnage was evident midweek, with several positions covered and remaining owners showing little urgency, helping place upward pressure on rates. By Thursday, the market adopted a steadier, more measured stance as charterers eased off bids, particularly on fronthaul, though sentiment remained stable and transatlantic business held firm. In the Pacific, rates improved throughout despite limited South Pacific mineral demand, supported by Atlantic strength lifting numbers and discouraging ballasting toward EC South America. Period activity stayed active with multiple medium-term fixtures in the high-$17,000s. The P5TC average rose overall from $13,688 to $14,504.

 

Many described a positional week for the sector with regional variations. In the Atlantic, the US Gulf gained traction at the beginning but as it closed some felt a ceiling had been reached. The South Atlantic, despite seeing demand, the number of vessels open was sufficient to keep rates in check. Ultramax size vessels generally fixing around the $15,000 plus $500,000 ballast bonus region for fronthaul business and for transatlantic runs in the low $20,000s. The Asian arena also saw a mixed bag, the North seemed to pick momentum throughout the week with Ultramax sizes fining around $13,000 from North China for NoPac rounds. Further south, a 57,000-dwt fixed delivery Singapore trip via Indonesia redelivery CJK at $7,000. Period activity however picked up, a newbuilding 63,500-dwt open China fixing one year’s trading at $16,350, whilst in the Atlantic a 63,300-dwt open West Africa fixed 7/10 months trading redelivery worldwide at $17,100.

 

The Handysize markets posted a gradual improvement over the week, ending on a firmer footing, driven mainly by strength in the Atlantic, while the Pacific continued to lag behind. In the South Atlantic, healthy cargo volumes and tightening tonnage pushed rates higher, highlighted by a 37,000-dwt vessel fixed for delivery Recalada to redelivery West Africa at $22,250. The US Gulf also remained firm, supported by improving demand and a clearing tonnage list, with a 37,000-dwt reported fixed for a trip from SW Pass to Acajutla at $17,500. By contrast, the Continent and Mediterranean stayed largely stable, with limited fresh enquiry keeping rate levels mostly unchanged. A 39,000-dwt vessel open in the East Mediterranean 22–27 January was fixed for a West Africa trip with gypsum at $12,000. In Asia, fixing activity remained limited, although sentiment improved slightly toward the end of the week, with a 40,000-dwt vessel from West Coast Australia to China fixed with grain at $15,500.