The Capesize dry bulk market commenced the week with a positive outlook but experienced a gradual decline as activity failed to increase significantly. The BCI 5TC started at $22,311 but fell steadily, concluding the week at $20,503.
In the Pacific region, despite initial optimism stemming from fresh cargo and mining activity, an oversupply of tonnage led to weakening rates. The C5 offers decreased from $9.30 early in the week to $8.65 by week’s end.
In the Atlantic, initial support from tight tonnage quickly diminished due to the emergence of softer fixtures, particularly on routes from South Brazil and West Africa to China. The C3 rates, initially sitting in the high $25s, eroded down to the very low $23s, indicating a lack of market resistance.
The North Atlantic region saw some support from fronthaul activities, mainly with West Africa stems, but a scarcity of trans-Atlantic cargo continued to fuel a bearish market sentiment. In contrast, the Panamax market had a robust week, witnessing gains in both the Atlantic and Pacific basins.
The North Coast of South America drove fronthaul and trans-Atlantic demand. Notably, $20,000 was achieved for a trip via North Coast South America with delivery to the Far East.
In the Pacific, demand remained steady, leading to rates of $15,000 on vessels from NoPac, while rates for the P5 route gained approximately $1,800 week-on-week due to tighter tonnage. The Ultramax and Supramax markets, however, faced challenges.
Political uncertainty led to a cautious approach; while the Atlantic remained stable, the Asian market saw negative trends. The Handysize sector demonstrated mixed performance across regions, with a sense of stability in the Continent and Mediterranean due to a healthy cargo book.
In the South Atlantic and US Gulf, market fundamentals were slow, while Southeast Asia reported steady demand with several strong fixtures. Overall, the week highlighted significant variations in performance across the various dry bulk segments.