Baltic Exchange: Dry Bulk Weekly Report

The market endured a broadly softer week, with sentiment cooling across both the Pacific and Atlantic as the BCI 182 5TC slid from the low $31,000s to finish closer to $26,468. Early optimism in the Pacific, driven by miner presence and steady West Australia volumes, ultimately failed to prevent rates from retreating. C5 corrected sharply from the mid $9.00s down into the low-to-mid $8.00s. In the South Brazil and West Africa to China market, activity remained muted through end February/early March laycans, with C3 levels continuing to grind lower into the high $22.00s by week’s end, and only sporadic fixtures emerging for later dates. The North Atlantic also softened, though by the end of the week there were early signs of a slightly tighter tonnage picture developing, despite limited activity. Overall, the week closed on a quiet and cautious note.

 

The BPI drifted steadily lower over the week, with the P5TC falling from $15,735 on Monday to $14,865 by Friday, as sentiment softened across both basins. The Atlantic saw limited fresh cargo throughout, with transatlantic and fronthaul demand remaining thin and many charterers comfortably covered by backstops. Growing tonnage lists and delayed weather-affected vessels added to pressure, gradually shifting leverage toward charterers, though owners were largely reluctant to chase. Fronthaul activity cleared at or near last-done levels, with little upside evident. In Asia, the cargo book thinned further, particularly from the North Pacific and East Australia, while EC South America momentum faded. A clear split persisted, with larger, modern tonnage still attracting interest and occasional premiums despite broader market weakness.

 

The Atlantic currently remained the more active of the two basins over the course of the week. Key areas from the Atlantic saw positive increase in demand and better numbers being discussed. The US Gulf saw ultramax size fixing in the mid $20,000s for transatlantic runs and the slightly smaller Supramax size seeing similar levels for fronthaul. Stronger levels were seen from the South Atlantic, a 64,000-dwt fixing in the low $16,000s plus low $600,000s ballast bonus for a trip to Singapore-Japan. In Asia, as the week progressed it became clear that demand had eased both for backhaul and NoPac business which in turn kept any upward moment in check. A 56,000-dwt fixing delivery China redelivery SE Asia at $8,000. Demand remained steady from the Indian Ocean, a 61,000-dwt fixing delivery South Africa trip Singapore-Japan in the mid $15,000s plus mid $500,000s ballast bonus. Period cover was still short, a 63,000-dwt open South China fixing 13-15 months trading at $15,900.

 

The Handy market recorded a cautiously firm week, with sentiment gradually improving, particularly in the Atlantic basin. The South Atlantic and US Gulf were the main sources of strength, with both charterers and owners raising bid and offer levels and several fixtures concluded at improved rates. A 39,000-dwt was reportedly fixed from Houston via Texas to Nador with petcoke at $19,000, while a 40,000-dwt was fixed from Recalada to Morocco at $20,000. The Continent and Mediterranean remained mostly steady, with only marginal rate improvements and limited fresh activity. A 34,000-dwt, open Leixões, was fixed via Liverpool to Safi with scrap at $13,250. The Asian market remained the quietest region, with subdued cargo book. Although some tightening was noted in NoPac toward the end of the week, rates largely drifted sideways. A 38,000-dwt, open Sitra 8–13 February, was fixed for a trip to West Australia at $7,000. On the period side, activity was limited. A 40,000-dwt newbuilding was reported fixed for three years at 120.5% of BHSI.