As the week unfolded, the Capesize market saw a blend of stability, resistance, and shifts in sentiment across both the Pacific and Atlantic regions. The Pacific market commenced the week with a steady but balanced pace. The presence from two out of the three major players, accompanied by operator cargoes and a handful of tender cargoes painted a picture of consistency. However, the supply of available tonnage continued to expand, putting pressure on rates. Despite the healthy cargo volume, this surplus of tonnage kept rates relatively flat throughout the early part of the week. Sentiment shifted midweek as owners exhibited some resistance. This change resulted in a positive turnaround, with rates on C5 improving by approximately 0.60 cents. Yet, this momentary improvement was brief, swiftly eclipsed by the extensive tonnage list, effectively restraining any further room for upside. The Atlantic market began with a positive undertone that persisted throughout the week. Encouraging reports of more substantial fixtures originating from South Brazil and West Africa to China kept owners’ confidence buoyant. This upbeat sentiment saw an increase in activity levels, contributing to a noteworthy uptick in rates. However, the market's forward outlook began to exhibit signs of caution as the market began adopting a positional stance, where index dates started to obtain a premium, although there is a growing perception that rates might start declining as shipments dwindle and dates move forward.
Overall, a positive week for the sector that saw healthy demand from South America combined with a shortage of tonnage rates pushed up. In the North Atlantic, an 80,000-dwt was fixed delivery Gydnia via the Baltic to Turkey at $24,500. The push from South America saw an 81,000-dwt fixing at $17,000 plus $700,000 ballast bonus for a front haul redelivery from Singapore to Japan. In Asia, with good levels of enquiry both from Australia and sustained demand from the NoPac again, stronger rates were seen. An 85,000-dwt open Yeosu fixing an Australian round at $12,500. As the week drew to a close sentiment, Asia became a little more cautious with Indonesian business slowing down. However, with the demand from South America, owners were reluctant to take a cut in ideas. A healthy amount of period cover was seen, with an 82,000-dwt open North China fixing 9 to 11 months trading with worldwide redelivery at $14,350.
A positive week for the sector, with a shortage of tonnage combined with healthy demand in key areas such as the US Gulf and South America, better levels were achieved. A 64,000-dwt open East Coast South America fixing a trip redelivery from the US Gulf to the East Coast Mexico in the low to mid $18,000s. From Asia, despite some holidays in the region, the sentiment remained positive. Tonnage availability became tight, which saw charterers increasing bids to secure tonnage. A 61,000-dwt Southeast Asia was heard fixed for an Australian round at close to $14,000. A 63,000-dwt open South China fixing a trip via Indonesia redelivered to West Coast India at $12,000. Better amount of enquiry from the Indian Ocean saw Ultramax sizes fixing in excess of $15,000 plus $150,000 ballast bonus for delivery to South Africa and redelivery to China. The appetite for the period maintained, with a 63,500-dwt open China fixing at $13,750 for one year’s trading redelivery worldwide at $13,750.
The handy market saw gains this week across the sector. In the South Atlantic, tonnage availability was said to be tight, and a 37,000-dwt fixed from Rio Grande to WC Central America at $19,500 whilst a 35,000-dwt fixed basis delivery when we are ready Upriver Plate for a trip to the Eastern Mediterranean in mid $13,000’s. The Black Sea was also more active with a 37,000-dwt fixed passing Canakkale via the Black Sea to the Western Mediterranean at $7,400; whilst a 36,000-dwt was fixed for a similar voyage in the mid to high $7,000’s. In Southeast Asia, tonnage availability was also a factor and a 38,000-dwt was fixed from the Philippines via Australia to China at $12,500 and a 32,000-dwt opening in Kandla was fixed passing Colombo via Australia to Indonesia with a cargo of Alumina at $8,750. The period market was also active with a 38,000-dwt fixed from Georgetown, Guyana for 12 months at 105.5% of the BHSI.