The Capesize market experienced a decline last week, particularly in the Pacific where sentiment softened significantly. C5 rates faced pressure as iron ore volumes from West Australia decreased. While coal shipments from East Australia provided some support, they were insufficient to counterbalance the overall weakening. By the end of the week, C5 rates fell from $11.00 at the start to the low-mid $9.00s.
In the Atlantic, the week began stronger due to limited tonnage and a steady flow of cargoes sustaining rates. However, as the week progressed, both trans-Atlantic and fronthaul routes saw a reduction in offers. Specifically, the South Brazil to China (C3) route showed a backwardation trend, with rates dropping from high $26.00s to low $20.00s. Overall, the BCI 5TC declined by over $7,000, settling at $23,879 by Friday.
The Panamax sector had a subdued week, marked by limited trans-Atlantic trades and a noticeable drop in grain and mineral demand. While Eastern South America experienced a mix of rates, overall activity remained low. Midweek fixtures for index arrival dates ranged from $11,500 to $13,000 for 82,000-dwt vessels delivering to the India-SE Asia range. The Asian market too faced a decline, exacerbated by an increasing tonnage count with limited inquiries from NoPac and Indonesia, leading to a slow erosion of rates.
On the period front, an 82,000-dwt vessel delivered to Taiwan managed to secure $11,000 for a 6-8 month term. In the Ultramax/Supramax segment, demand was uneven. The Atlantic reported improved demand, with a 58,000-dwt vessel securing $21,000 for a trip to EC Mexico. Although activity in the South Atlantic remained lively, the Continent-Mediterranean experienced subdued rates.
The Asian market had a slow start, but inquiries from NoPac and Indonesia picked up as the week progressed. Nonetheless, rates remained steady within the Indian Ocean. The Handysize market presented mixed trends. While the Continent and Mediterranean faced soft conditions and limited new inquiries, the South Atlantic and U.S. Gulf regions showcased strong activity driven by consistent demand.
Rates for 33,000-dwt vessels reached $17,500 for trips to the Continent. Despite a quiet Asian market and a longer tonnage list, rates remained largely stable, with a 34,000-dwt vessel fixed for $9,000. Overall, interest in period charters was limited, with a 28,000-dwt fixed for $9,650 from Southeast Asia for a 4-6 month term.