Baltic Exchange: Dry Bulk Weekly Report

The market strengthened convincingly over the course of the week, with momentum building steadily from an already active start in the Pacific following the UK bank holiday. Early support came primarily from robust Pacific activity, where the consistent presence of all three major miners on C5, coupled with a healthy flow of East Australian coal tender cargoes, drove rates progressively higher and underpinned increasingly bullish sentiment. This strength gradually filtered into the Atlantic basin, where activity and confidence improved as the week progressed. Firmer transatlantic rounds and tightening tonnage lists helped support. Midweek, both basins experienced a notable acceleration in positive sentiment, with the market appearing increasingly supply-driven as vessel availability tightened. C5 pushed firmly into the mid $15s and beyond, while C3 gained traction into the upper $36s amid improving bid levels and growing resistance from owners. However, by the latter part of the week, momentum began to moderate in both basins as C5 slipped back closer to $15, while ballaster availability lengthened slightly and fixing activity became more selective, leading to some softer C3 fixtures for later dates. Nevertheless, North transatlantic activity remained robust overall and stronger numbers were also seen, helped by fronthaul demand. Overall, the BCI 182 5TC rose from $42,649 on Tuesday to finish the week at $44,941, after peaking at $46,610 on Thursday.

 

This week saw steadily strengthening Panamax market sentiment across both basins, driven by tightening tonnage and improving cargo volumes. Early in the week rates surged, led by gains in both Atlantic and Pacific routes as stronger grain and mineral activity supported higher fixtures, particularly on fronthaul trades. Although midweek trading in the Atlantic was quieter, sentiment remained firm with thinning vessel lists and owners increasing offers amid improved fronthaul fixing volumes. In Asia, sustained Australian mineral exports and active Indonesian demand, coupled with a limited supply of modern tonnage, kept rates on an upward trend. By Thursday, tightening vessel supply and consistent cargo flow pushed the market higher still with both basins reporting firmer fixtures and continued upward momentum. The P5TC index posted steady gains throughout the week, rising from $18,490 on Tuesday to close at $20,099 by Friday.

 

Despite the short week for some following the long weekend, the sector generally remained upbeat. The Atlantic saw a reasonable amount of activity and owners’ expectations cautiously rose. A 61,000-dwt fixing delivery US East Coast for a trip to Finland with coal at $26,000. The Continent saw continued demand for the scrap sector, an Ultramax fixing around $20,000 from the lower Baltic to the East Mediterranean. Despite limited activity being reported, brokers said healthy numbers were still being seen from the South Atlantic and Ultramax size fixing at around $17,000 plus $700,000 ballast bonus. The Asian arena remained steady, although some felt fresh enquiry further north was lacking. A fixing delivery Busan via the NoPac redelivery Chittagong at under $17,000. Demand remained further south, a 55,000-dwt fixing delivery passing Penang trip via Indonesia redelivery Thailand at $18,250. It was rather a positional affair from the Indian Ocean, a 63,000-dwt fixing delivery Kandla redelivery China in salt at $16,500.

 

The market overall stayed largely flat to modestly firm, with most of the movement driven by positional factors rather than a significant rise in demand. In the Continent and Mediterranean, things remained very subdued, with limited inquiries and a general quietness setting the tone. On the other hand, the US Gulf and South Atlantic experienced a touch more activity, with fresh interest and marginally improved movement. However, despite these signs, the uptick was not sufficient to clear the surplus tonnage, resulting in only gradual improvements in rates. Notable fixtures include a 40,000-dwt open Lagos 2/5 May that fixed a trip delivery Vila Do Conde to Norway, carrying alumina, at $22,000, and a 37,000-dwt open Galveston 5/10 May that fixed for a trip delivery Mobile to the UK with wood pellets at $14,000. Over in Asia, the market was flat as well, partly due to regional holidays. The tonnage list grew a bit longer, but there was not much change in the cargo book, a 37,000-dwt fixed for multiple trips from CJK at $17,500.