The dry bulk market is experiencing a notable uplift, particularly across various vessel categories. In the Capesize sector, the market started the week slowly due to European holidays but gained momentum as activity picked up.
The C5 route from West Australia to China saw increased engagement from major miners, with rates climbing from below $10.00 to around $11.015 by the week’s end. The Atlantic basin was the standout performer, driven by a tight tonnage situation and rising demand on the C3 route from Brazil to China, where bids for early July laycans reached $27.00-$28.00 on Thursday.
However, Friday saw a drop in activities, particularly for index laycans, despite the strength observed in the North Atlantic. By the week’s conclusion, the BCI 5TC index rose nearly $6,000, closing at $30,866.
The Panamax segment also displayed significant increases, primarily fueled by strong grain demand in the Atlantic. Notable support was noted in both North and South America, particularly for end-June arrivals.
While trans-Atlantic rates diverged due to delivery variations, a vessel from Gibraltar secured $21,500 for a North Coast South America trip, contrasting with an $18,000 rate for a ship from North Spain on the same route. The Pacific market was bolstered by demand out of Australia, highlighted by an 82,000-dwt vessel achieving $13,500 for a trip to Singapore-Japan.
In the Ultramax/Supramax category, while the Atlantic maintained a positive trend with higher rates driven by tight tonnage, the Asian market faced challenges due to fewer inquiries and increasing prompt vessel availability. A 58,000-dwt vessel secured $20,000 for a trip from SW Pass to Japan, while a 60,000-dwt ship experienced limited rates in the mid $11,000s for a trip from Indonesia to China.
The Handysize market displayed mixed results, with modest changes in both the Continent and Mediterranean areas. Some fresh demand was observed, yet rates remained largely stable, as seen with a 40,000-dwt vessel fixed at $10,000 for a trip from Alexandria to the Continent.
In the U.S. Gulf, market fundamentals remained robust, but activity was limited. Overall, the dry bulk market’s momentum indicates a promising trend across various sectors.