The capesize market witnessed an eventful week. It began energetically in the Pacific, where all three major players actively participated, leading to a positive response to the C5 market. As the week progressed, the market experienced fluctuations in trading volumes, resulting in the market remaining relatively stable by the middle of the week. However, with the substantial cargo volume, owners started to exhibit resistance, injecting a sense of bullish sentiment into the market, and resulting in a further rise in rates. In contrast, the Atlantic market saw limited discussions and activity at the beginning of the week. However, as laycans shifted forward, owners were able to show some resistance. As the week unfolded, there was a gradual uptick in activity, marked by fresh enquiry in the North Atlantic. This led to more robust fixtures being concluded and an increase in trading levels from South Brazil and West Africa to the Far East. The week concluded positively, with improved fixtures in both the Pacific and North Atlantic, leading to increased rates and a promising outlook.
The Panamax market began the week mostly on a firm footing with the continued bullish trend particularly in Asia carrying on from the back of last week’s push. Conversely the Atlantic began nervously with limited fresh demand in the North of the basin for trans-Atlantic trips pitted against an ever-expanding tonnage count. South America was steady rather than exhilarating with end of September arrivals a mix of APS plus BB deals, plus some DOP SE Asia fixtures emerging with reports of $13,500 concluded on several deals. In Asia, steady support for both NoPac grains and Australia minerals throughout the week gave some impetus to the market, with rates returning between $13,000 and $14,500 dependent on trade/delivery position. With healthy Indonesia demand continuing in Southeast Asia positions, there was good demand from all angles. Some period activity of note with several deals reported the highlight an 82,000-dwt delivery China achieving $14,500 basis 6/8 months.
A stronger week overall for the sector, which saw improved activity and stronger rates being discussed. The Atlantic saw healthy demand both from the US Gulf and Continent-Mediterranean with limited fresh tonnage appearing. However, as the week closed some saw a slight tempering of fresh enquiry. From Asia, strong demand was seen from the Indian Ocean-South Africa region, which seemingly buoyed owners’ expectations despite a relatively limited amount of fresh enquiry from SE Asia and further north. Demand remained healthy for period cover, a 56,000-dwt open Mumbai fixing minimum five months to maximum seven months trading at $12,500. In the Atlantic, a 56,000-dwt fixed from SW Pass to Atlantic Colombia at $18,000. Whilst a 63,500-dwt fixed delivery United Kingdom trip via Morocco redelivery India at $24,000. In Asia, an Ultramax was fixed delivery Philippines trip via Indonesia redelivery China at $15,000. From the Indian Ocean a 63,000-dwt fixed delivery Chittagong trip via South Africa redelivery China at $12,750.
A mixed week for the sector. Whilst overall sentiment remained positive in the Atlantic, there was a rather lacklustre feel from the Asian arena. Brokers said the Atlantic saw better levels of fresh enquiry both from the South Atlantic and Continent-Mediterranean regions helping keep rates at reasonable levels. From Asia, it was finely balanced with some seeing prompt tonnage availability grow in the north but limited fresh enquiry. Period activity was seen, with a 33,000-dwt fixed delivery SE Asia for short period at $11,000. In the Atlantic, a 38,000-dwt fixed from EC South America for a trip to the Continent at $15,000. From Asia, a 37,000-dwt open North China fixed a trip to SE Asia at $8,000. Further south a 28,000-dwt was heard fixed basis delivery Singapore for an Australian round voyage redelivery Far East at $9,000.
Source: Baltic Exchange