The Capesize market saw a significant decline last week, reflecting weak sentiment amid low activity in both the Atlantic and Pacific basins. A major contributing factor to this downturn was the absence of key C5 miners in the Pacific, which increased vessel supply and further deteriorated market sentiment. Consequently, C5 rates dropped substantially, falling to mid-high $6.00 levels from recent highs of $10.00 to $11.00.
While coal cargoes from East Coast Australia provided some fleeting support, this was not enough to counteract the dip in iron ore activity. In South Brazil and West Africa, shipments to China experienced sporadic improvements; however, these gains were inconsistent and fixing rates continued to decline, with C3 rates slipping into the low $20.00s. The North Atlantic appeared comparatively stable, benefiting from fresh cargo and a balanced tonnage list, although fixture activity was limited and rates softened towards the week’s end.
Overall, the Baltic Capesize Index (BCI) 5TC fell by $4,959, settling at $18,408 from over $23,000. In the Panamax market, a more positive dynamic was observed. The North trans-Atlantic run sparked significant discussions, reflecting varied views on market value.
South American activity remained robust; above-index rates were finalized for pre-index arrival dates. Highlights included rates around the $15,500 + $550,000 mark for second-half July arrival deals. In Asia, notable volumes were noted from Australia and NoPac towards the week’s end, with rates averaging around $13,000.
In contrast, the south saw rates improve to approximately $11,750 due to tight tonnage. The Ultramax/Supramax sector displayed mixed trends. The Atlantic faced challenges, with limited fresh inquiries leading to a rate drop, whereas the Asian market benefited from increased demand from Indonesia and NoPac.
Notable fixtures included a 63,000-dwt vessel fixed for a trip from Singapore to China at rates in the high $13,000s. Finally, the Handysize market experienced a mixed performance across regions. The Continent and Mediterranean showed softness, with rates dipping below prior levels.
Conversely, the South Atlantic demonstrated sustained momentum, although the U.S. Gulf market began to exhibit signs of weakness toward the weekend. Demand remained steady in Asia, maintaining largely flat rates with a balanced cargo-to-tonnage ratio. Period interest was evident in both basins as activity continued.