Baltic Exchange: Dry Bulk Weekly Report

The market endured a challenging week, with sentiment deteriorating steadily as limited enquiry and a lack of sustained cargo volume weighed on both basins. The BCI 182 5TC fell from $42,798 at the start of the week to $37,251 by the close, representing a significant erosion of earnings and underscoring the loss of momentum from the stronger levels seen in late May. The Pacific remained the primary source of weakness throughout the week. Early pressure stemmed from notably light miner participation, with only sporadic activity from the majors. Although all three miners returned to the market later in the week, the increase in activity was insufficient to prevent further declines as cargo volumes remained inadequate relative to available tonnage. As a result, C5 slipped below the $11 mark by week’s end. In the Atlantic, conditions were relatively more balanced but lacked the strength needed to offset Pacific weakness. The South Brazil and West Africa to China market softened during the first half of the week before stabilising, with C3 fixtures recovering into the high-$35s to $36 range before easing back to $35.50 by the close. The North Atlantic provided occasional support through fresh fronthaul demand and a handful of stronger fixtures, though overall activity remained subdued.

 

The week began on a subdued note across both basins, with the Atlantic largely steady and the Pacific under pressure amid limited demand and a growing tonnage list. Early weakness in the Pacific saw rates slip with an 81,000-dwt open North China fixing a Pacific round at $19,500, while the Atlantic experienced minimal fixture activity and wide bid-offer spreads. By midweek sentiment in the Atlantic improved, supported by stronger fronthaul enquiry, tightening prompt supply, and increased flexibility from charterers allowing rates to edge higher. Towards the end of the week, the Atlantic strengthened notably, with prompt tonnage in the North Atlantic and West Mediterranean clearing and driving rates higher. An 80,000-dwt open Rotterdam reportedly fixed a grains fronthaul cargo via EC South America at $27,500 and a 78,000-dwt open in the North Continent fixing for a transatlantic round trip at $19,000. The Pacific also stabilised, aided by increased North Pacific grain demand and longer fronthaul opportunities with an 82,000-dwt open in North China fixing an Australian round trip at $21,250. Period activity has also been evident this week with several reported fixtures including an 82,000-dwt open Zhanjiang fixing for 4/6 months at $22,500 and an 81,000-dwt open in Xinsha fixing for 11/13 months at $19,000, both with redelivery worldwide.

 

A stronger week for the sector. The Atlantic saw steady gains made across most areas as the week progressed. An uptick in demand from the US Gulf with limited tonnage availability helped the owning side. A 64,000-dwt fixing a transatlantic run in the low $30,000s and another 64,000-dwt fixing a fronthaul run in the upper $20,000s. The South Atlantic also remained relatively firm with prompt demand and a limited flow of fresh tonnage. The Asian arena started the week relatively slow but as it progressed, healthy levels of enquiry were seen for both backhaul and Pacific business. A 63,000-dwt fixing delivery China trip via Gulf of Aden redelivery Mediterranean at $26,000. Whilst a 64,000 fixed delivery SE Asia trip via Australia redelivery Singapore-Japan at $23,000. Whilst the Indian Ocean remained rather positional, a 64,000 was heard fixed delivery South Africa redelivery Pakistan in the upper $20,000s and upper $200,000s ballast bonus. Period cover gained traction, a 63,000-dwt open China fixing 5/7 months trading redelivery worldwide at $22,000.

 

The Handysize market strengthened over the week, with sentiment improving steadily after a quiet start. In the Continent and Mediterranean, activity was initially subdued before rates began to firm on the back of improved demand. The US Gulf remained consistently well supported, underpinned by healthy activity and firm underlying demand. A 38,000-dwt vessel was reported fixed from SW Pass to EC Mexico with grains at $18,750. The South Atlantic was broadly balanced, with steady demand helping to absorb available tonnage. A 40,000-dwt vessel was placed on subjects for a trip from Recalada to WC South America at $28,000. In the Pacific, activity built through the week, supported by tighter tonnage and firmer enquiry, with several fixtures reported above previous levels. A 38,000-dwt vessel was reported fixed from Hososhima to Malaysia with slag at $18,500. Period activity also emerged, highlighted by a 28,000-dwt vessel fixing for 3–5 months from Southeast Asia at $11,500 and a 39,000-dwt vessel reported fixed for 4-6 months from Casablanca with redelivery Atlantic at $13,000.