Baltic Exchange: Dry Bulk Weekly Report

The market endured another challenging week, with sentiment steadily weakening across most routes as rates continued to slide. In the Pacific, despite consistent miner participation and generally healthy operator activity, this proved insufficient to counter growing pressure from available tonnage. The C5 route softened throughout the week, with fixtures gradually slipping from the high-$7.00s into the low-$7.00 range, although by week’s end the market showed early signs of improvement. In the Atlantic, the South Brazil and West Africa to China market deteriorated sharply midweek, with rates falling from the low-$20s to around $19.00 on C3, as softer demand and more competitive offers weighed on sentiment. However, by Thursday, signs of stabilisation emerged, with bids edging back toward $19.00 and fixtures concluded in the low $19.00s, suggesting a possible floor. By the end of the week, sentiment had improved further as the C3 index nudged back up to $19,559. Elsewhere, the North Atlantic experienced the sharpest decline, with both fronthaul and transatlantic rates slipping noticeably. Despite sporadic activity, this proved insufficient to shift sentiment, although by the end of the week there was talk of a slightly stronger transatlantic fixture helping to lift confidence as the week came to a close.

 

The week began with a cautious tone, as discounted mineral transatlantic business contrasted with more resilient grain trades, while fronthaul provided steady support. Tonnage supply across the Continent remained heavy, limiting upside despite reasonable enquiry. Midweek saw continued pressure on spot rates, although grain transatlantic commanded a modest premium and Indonesian demand stayed active, with modern vessels increasingly targeting longer Pacific employment or East Coast South America. Period activity provided some encouragement, highlighted by several mid to longer-term fixtures at firmer levels. By Thursday, sentiment had strengthened across all basins, with narrowing discounts in the Atlantic, busy fronthaul activity and firmer Pacific ideas. This improvement was reflected in the P5TC, which recovered to close the week at $13,120.

 

A rather positional week overall for the sector. The Atlantic was a bit more buoyant certainly from the US Gulf, with more fresh enquiry and tight availability becoming tighter. Ultramax size seeing in the low $20,000s for transatlantic runs. From the South Atlantic traction was yet to be found, with a 63,000-dwt fixing in the low $14,000s plus low $400,000s ballast bonus for a trip to Southeast Asia. The Continent-Mediterranean also remained rather positional with some seeing better levels of enquiry from the Continent. The Asian arena remained a rather gloomy area from an owner’s perspective, although as the week closed it felt like a floor had been reached. A 58,000-dwt fixing delivery China for a trip to Bangladesh with clinker in the mid $13,000s. The Indian Ocean lacked much fresh impetus a 58,000-dwt fixing delivery Salalah trip to W.C. India in the mid $15,000s.

 

The Handysize market endured a persistently subdued week, with overall fundamentals remaining weak as tonnage supply continued to outweigh demand in both basins. In the Continent and Mediterranean, activity was largely positional, with limited fresh inquiries and rates holding at or slightly below recent levels. A 34,000-dwt was reported fixed for delivery Varna, redelivery Continent, at around $9,000. The South Atlantic showed tentative signs of stabilisation, with some owners beginning to reassess rate expectations upward, although overall activity remained muted. A 36,000-dwt open West Africa was reported fixed for a trip delivering Recalada and redelivering Algeria at $17,000. The US Gulf continued to face challenging conditions amid a lack of fresh cargoes and a lengthy tonnage list, resulting in a softer market tone. A 40,000-dwt was reported fixed for a trip from the Mississippi River to East Coast Mexico at $15,500. Asian markets also remained quiet, with limited cargo availability weighing on sentiment. A slightly longer tonnage list, particularly on Southeast Asia–North Asia routes, applied mild pressure, though rates largely stayed near last-done levels. A 40,000-dwt was reported fixed from Rizhao to West Coast India at $10,000. Period activity was sporadic but present, with several short-period fixtures reported.