Marked decline for Capesize market

The Capesize market experienced a marked decline this week, with sentiment steadily weakening amid persistently low activity across both the Atlantic and Pacific basins. A key factor was the prolonged absence of all major C5 miners in the Pacific, which led to mounting vessel supply and further dampened sentiment. As a result, C5 fell sharply by week’s end to mid-high $6.00 levels, down significantly from recent highs of $10.00–$11.00. While East Coast Australia coal cargoes offered some support, it was insufficient to offset the lack of iron ore activity. In contrast, the South Brazil and West Africa to China markets saw sporadic improvements, but momentum was inconsistent and fixing levels steadily eroded, with C3 rates dipping into the very low $20.00s. The North Atlantic showed more stability, supported by fresh cargo and a relatively balanced tonnage list, although fixtures were limited and rates softened towards the end of the week. Overall, the BCI 5TC shed $4,959, dropping from above $23,000 to settle at $18,408.

 

A compelling week in the Panamax market. The North trans-Atlantic runs providing numerous points of discussion, with wide ranging views on where true market value lay as West Med v Continent deliveries differentiated somewhat, however the overriding sentiment on the week continued to be positive. An active week too ex-South America, above index rates were achieved for pre-index dates arrival, whilst there returned only a brace of second half July arrival deals concluded, generally basis delivery APS load port around the $15,500 + $550,000 mark. The Asian basin saw decent volume ex-Australia and towards the end of the week ex NoPac, circa $13,000 the mean average for the 82,000-dwt types basis index duration trips, whilst ex Indonesia and with tight tonnage count persisting in the south rates improved around $1,000 across the week to close around the $11,750 mark. Limited period activity of note but included reports of a 95,000-dwt delivery Japan achieving $11,250 basis 4/7 months.

 

Overall, the sector was described as positional over the last week. The Atlantic saw mixed blessing for owners’ as limited fresh enquiry from the US Gulf led to a drop in rates, at the beginning of the week a 58,000-dwt was reported fixed delivery Houston for a trip Nigeria at $20,000. However, activity remained from the South Atlantic, although fixing information was limited. The Asian arena fared better, as increased demand from Indonesia and the NoPac saw positive sentiment return to what has been a rather dull period. A 63,000-dwt fixing delivery Singapore trip via Indonesia redelivery China in the high $13,000s. Whilst from the NoPac, a 58,000-dwt open China fixed a round voyage redelivery China at $12,000. The Indian Ocean saw slightly better demand from South Africa, a 63,000-dwt fixing delivery Port Elizabeth trip to China with manganese ore at $14,000 plus $140,000 ballast bonus. Period action remained, a 63,500 new building fixing ex yard China in the mid to high $13,000s for a year’s trading.

 

This week, the market saw a mixed performance with modest shifts across both basins. The Continent and Mediterranean regions remained subdued, with rates slipping below previous levels as the soft trend persisted. A 35,000-dwt heard fixed delivery Canakkale via CVB to the West Mediterranean with grains at around $6,750. In contrast, the South Atlantic maintained its momentum, though the U.S. Gulf market slowed toward the weekend, showing signs of weakening support. Notable fixtures included a 38,000-dwt open Santa Marta fixed delivery Barranquilla redelivery ARAG with metcoke at $17,500 and a 39,000-dwt fixed delivery Mobile redelivery Continent at about $20,000. In Asia, market conditions remained steady, with a balanced cargo-to-tonnage ratio keeping rates largely flat. A 35,000-dwt vessel was fixed from Phu My for a South China to Southeast Asia trip with iron ore at $12,500. Period interest was relatively active in both basins. A 38,000-dwt open in Houston was placed on subjects for a short period, while a 40,000 DWT newbuilding open in Hong Kong was fixed on a period basis at an index-linked rate of 118%.