Baltic Exchange: Dry Bulk Weekly Report

The week began with renewed optimism, led by a firmer Pacific market as all three major miners returned to the market and operator cargo volumes appeared healthy. Early strength in the Pacific, supported by fixtures above $10.00 on C5, set a constructive tone, while the Atlantic also edged higher despite a noticeable bid-offer gap. As the week progressed, momentum gradually faded. Despite consistent miner activity and steady operator demand, fixing levels edged lower. C5 slipped back below $10.00 during softer midweek trading, while C3 for March dates eased from the mid-$25s to the mid-$23s region, reflecting a market struggling to sustain its initial push. The forward market, however, showed relative resilience, with April C3 stems continuing to command a premium. By week’s end, sentiment found firmer footing. With three miners again active in the Pacific, C5 nudged back into the low $10s, offering some late support. Overall, the week can be characterised as one of early promise, a midweek pullback, and a modest late recovery, leaving the market steadier but still lacking decisive upward momentum.

 

The week was marked by a widening divergence between the Atlantic and Pacific basins. In the Atlantic, mounting prompt tonnage and limited fresh cargo enquiry weighed heavily on sentiment. With vessel supply consistently outpacing demand, owners were forced to compete aggressively, driving the P1A index down sharply over the course of the week. Despite sporadic transatlantic fixtures, rates struggled to find support and the overall tone remained cautious. Conversely, the Pacific basin strengthened steadily. Tight prompt availability and robust cargo flows from Indonesia, Australia, and the North Pacific underpinned firm utilisation and rising rate ideas. The P3A and P4 indices posted significant gains, reflecting strength in both the Pacific and backhaul market along with an active period market, lifting the P5TC average to close the week at $17,481.

 

The market showed consistent improvement throughout the week, supported by strengthening demand across both the Atlantic and Pacific basins. The US Gulf regained momentum following earlier positional pressure, aided by fresh cargo enquiry, with a 63,000-dwt fixed for a trip via the US Gulf to Spain at $28,000. The South Atlantic remained firm during the week, while the Continent and Mediterranean markets began to show rate improvement toward the end of the period, largely driven by scrap demand. Notably, a 64,000-dwt open Bremen 23–27 February fixed a trip to the East Mediterranean with scrap at $22,750. Asia proved to be the main driver of the week’s upward movement. Market activity strengthened progressively, led by the North Pacific trade, which continued to push rate levels higher as the week progressed. Cargo flow from Southeast Asia and Australia remained steady, while Indonesian coal movements to India also improved. Several fixtures were concluded above previous benchmarks, highlighting stronger regional momentum, including a 64,000-dwt open Ciwandan 2 March fixed via Indonesia to Pakistan at $19,000. Period activity remained robust, with several short and medium-term fixtures concluded at healthy levels. Among them, a 64,000-dwt open Bahodopi 26–28 February secured a 6–7 months charter at $19,000.

 

The week concluded on a positive note, with sentiment improving across both the Atlantic and Pacific basins. The US Gulf displayed firm fundamentals, as limited prompt vessel availability encouraged charterers to increase their bids, highlighted by a 40,000-dwt reportedly fixed from Savannah to the Continent at $28,000. In contrast, the Continent and Mediterranean markets remained largely positional, with only modest rate gains despite some fresh enquiry. A 34,000-dwt was reported fixed from Belfast to West Africa (high risk area) at $17,000. The South Atlantic continued to show supportive conditions throughout the week, backed by steady cargo demand, with a 37,000-dwt fixed from Recalada to Fortaleza carrying grains at $24,000. The Asian market generated much of the week’s upward momentum. Stronger bids and improved fixture levels across regional trades reinforced the firmer trend, including a 34,000-dwt fixed from Zhoushan for a trip to West Coast India at $11,600. Period activity also remained active, reflecting positive forward sentiment. A 38,000-dwt open Onsan 10–17 March was reportedly placed on subjects for a one-year charter at levels in the low-to-mid $14,000s.