Steady rise for Atlantic Panamax

The Capesize market began the week on a positive note but experienced a gradual weakening as the week progressed. Early in the week, signs of optimism were seen in the Pacific and Atlantic markets, supported by improved cargo flows and a shorter ballaster list. However, these gains were quickly reversed as the Pacific market faced a persistent oversupply of tonnage, with the C5 index dropping steadily from $7.34 on Monday to end the week at $6.385, as owners scrambled for fixtures ahead of the Christmas holidays. The South Brazil and West Africa to China routes showed some resilience, supported by an uptick in January cargoes and a reduction in ballasters, bringing a hint of optimism towards the week's end. This was reflected in the C3 index, which climbed to $16.950. Despite a challenging week overall, the BCI 5TC managed to gain $299, closing at $9,244.

 

A continuation of the previous week, with a steady rise in rates in the Atlantic. The North Atlantic again saw a tightening of tonnage supply, pitted against steady mineral demand throughout the week. Rates of $10,500 were concluded several times on 82,000-dwt tonnage for transatlantic grain trips, with firm sentiment taking hold on these routes. In contrast, fronthaul activity had a lacklustre week, with rates largely flat overall. Asia experienced a tough week, with pressure mounting from the start as the tonnage count grew and there was little fresh demand to counterbalance. $5,500 was agreed on an 81,000-dwt delivery from China for a NoPac round trip, while $3,250 was rumoured for an Indonesia coal trip to China on an older 75,000-dwt vessel delivering from South China. Unsurprisingly, given the low spot rates, period activity was limited, though reports emerged of an 82,000-dwt vessel delivering from Japan at $12,000 for a 14/15-month period.

 

The last full week of the year for many did little to bring much Christmas cheer, with market fundamentals changing little throughout the week. The North Atlantic remained rather positional, with a 61,000-dwt fixed basis delivery US Gulf for a trip to the Far East at $18,750. Further south, from EC South America, brokers described a subdued mood, with a 63,000-dwt fixing a trip from there to the Arabian Gulf at $14,500 plus a $450,000 ballast bonus. The Continent-Mediterranean market lacked fresh impetus, with a 63,000-dwt fixing from the North Continent to the East Mediterranean at $14,750. The Asian market continued its gentle downward trend as an abundance of vessels prevailed, with a 61,000-dwt open in Gresik fixing a trip via West Australia with redelivery in the Philippines at $13,000. Limited activity from Indonesia saw a 63,000-dwt fixed from Dumai, trip via Indonesia with redelivery in China at $10,750. The Indian Ocean also struggled, with a 61,000-dwt fixing a trip from South Africa to Pakistan at $16,000.

 

The market this week saw minimal visible activity across both basins, with rates continuing to slide in the Continent and Mediterranean, and sentiment generally soft. A 33,000-dwt open Newport UK around December 20th fixed delivery Newport via Baltic Russia to West Africa at $9,000. In the South Atlantic and U.S. Gulf, sentiment remained subdued, with tonnage availability putting additional pressure on rates. A 36,000-dwt was placed on subjects for delivery Santos, trip to redelivery Nigeria at $17,000, while a 39,000-dwt open US East Coast fixed delivery Savannah to redelivery Continent at $13,000. The Asian market also faced challenges, with rising tonnage and a lack of cargo, with a 39,000-dwt fixing delivery Far East to redelivery SE Asia at $8,750.