The Capesize market experienced significant challenges this week, primarily driven by broader macroeconomic tensions, particularly the escalating trade conflicts between the US and China. The Baltic Capesize Index (BCI) 5TC witnessed significant fluctuations, dropping from $16,728 to a midweek low before slightly recovering to close the week at $14,952. In the Pacific, the surplus of available tonnage persisted, and while key miners were active during the middle of the week, this was not enough to prevent C5 rates from declining from $7.95 to approximately $7.20, eventually closing at $7.70. In the Atlantic, the South Brazil and West Africa to China routes also faced pressure early in the week, causing the C3 index to decrease from $20.67 to $18.71 before recovering to $19.185.
In the Panamax sector, global macroeconomic factors significantly influenced market conditions, leading to disruptions across various regions. The trans-Atlantic routes faced considerable pressure due to weak demand and deteriorating oil prices, resulting in voyage fixtures dropping below sub-index timecharter equivalents. The only area of positivity came from fronthaul grain movements from North Central South America, although even these saw declines as the week progressed. A quieter market in South America maintained arrival deals around $15,250 + $525,000 bb for late April.
In Asia, demand was hampered by a lack of inquiries from North Pacific routes, despite a mid-week improvement for trips from Australia to China, hovering around $11,500. The Ultramax/Supramax sector continued to be affected by the ongoing tariff conflicts, leading to poor sentiment across many routes. The US Gulf market showed limited fresh impetus, and rumors indicated Supramaxes were achieving rates in the $13,000s for fronthaul voyages. In South Atlantic, tonnage remained positional, with a 63,000-dwt vessel fixed from EC South America to Denmark at $19,000.
Activity from West Africa displayed a little movement, while the Asian market reflected mixed demand, particularly from Indonesia. For the Handysize segment, rates faced continued downward pressure in both the Atlantic and Pacific regions. The markets in the Continent and Mediterranean remained subdued, with minimal activity resulting in slightly lower rates. The South Atlantic and U.S. Gulf continued to suffer from weak sentiment and increasing tonnage.
A 36,000-dwt vessel was fixed for a trip from Recalada to West Africa at $16,000, and a 39,000-dwt was noted for $12,500 on a route from the U.S. Gulf to the West Mediterranean. In Asia, rising tonnage levels anticipated further market softening, with rates for a 38,000-dwt fixed for a trip from Susaki to Indonesia at $11,500.