Softer footing for shipping this week

The market closed the week firmly on a softer footing, with sentiment deteriorating steadily across both basins despite pockets of activity. The BCI 5TC lost significant ground, sliding from $41,571 to end the week at $30,731, reflecting mounting rate pressure as the week progressed. The Pacific offered the only glimpses of resilience, with miners active on most days and occasional tender cargoes generating modest interest. However, this was not enough to offset declining C5 levels, which fell from the high $11s to mid $10s, signalling clear weakness in the basin. The South Brazil and West Africa to China market also lost ground, with C3 values sliding from the mid $25s at the start of the week to high $21s by Friday, even as cargo volumes improved and fresh demand emerged late in the week. The North Atlantic struggled throughout, with limited enquiry weighing heavily on both Trans-Atlantic and Fronthaul routes, which saw sharp swings but ultimately trended lower.

 

The week began with soft sentiment and limited activity, particularly in the Atlantic, as charterers continued to test lower rate levels. Asia remained under pressure with growing prompt tonnage and cautious bidding, while period activity stayed subdued throughout. Midweek, the North Atlantic showed some improvement, supported by tighter prompt supply and increased US East Coast coal export demand for December, alongside renewed talk of Capesize stems being split into Panamax cargoes. However, this firmness failed to offset persistent weakness in the Pacific, where ample vessel supply and thin cargo volumes drove further rate erosion across NoPac, Australia, and Indonesia. Overall, market softness dominated, with the P5TC average steadily declining to close the week at $15,194.

 

Overall sentiment remained weak, although some felt that there were pockets of activity giving a rather positional feel. Within the Atlantic, a split occurred whilst there still seemed to be demand for US Gulf trans-Atlantic business, fronthaul demand waned. Ultramax size seeing around $30,000 from US Gulf to the Continent. However, from the South Atlantic demand weakened, although a 56,000-dwt was heard to have fixed from North Brazil to the East Mediterranean in the low $20,000s. From Asia, also a rather negative week. Demand remained from the south although there was a good supply of tonnage to keep rates in check. A 52,000-dwt fixing delivery Singapore trip via Indonesia redelivery Cambodia in the low $13,000. However, further north demand slowed with little fresh impetus from the NoPac. A 63,000-dwt open North China fixing a trip to Bangladesh around $16,000. The Indian Ocean remained active, and rates remained relatively stable, a 63,000-dwt fixing delivery WC India fixing a trip via Saldanha Bay redelivery South China in the $17,000s.

 

It has been a challenging week for the sector, with both Atlantic and Pacific markets experiencing persistent downward pressure on rates. The Continent and Mediterranean remained subdued, with limited activity and levels edging slightly below those seen previously. A 33,000-dwt was reportedly fixed for a gypsum cargo from Garrucha to Rotterdam at $12,500. In the South Atlantic and U.S. Gulf, market conditions generally held steady. Although tonnage has gradually increased, pockets of fresh demand have helped maintain current rate levels, with no meaningful rise in cargo volumes to push the market higher. Notable fixtures included a 38,000-dwt fixed from Rio de Janeiro to East Coast Mexico with pig iron at $21,500, and a 40,000-dwt fixed for a Southwest Pass to East Coast Mexico trip at $23,000. Across Asia, rates continued to soften with sentiment remaining weak. A 42,000-dwt open Singapore was fixed for a trip via Australia to Japan with salt at $12,000.