Dry Bulk Market: Capesize Segment Supported by Demand in the Atlantic Region


The market ended the week at a high as the Atlantic region increased its activity and ignited other regions to rise in prices as well. Capesize 5TC now stands at $13,373. This is hardly an impressive level for this time of year – or for the past 18 months – yet it rose to +4,068 week on week. The stark difference in earnings between regions is evident as the transpacific transatlantic pays $13,518 to the transatlantic C8 at $18,144, while the Ballast C14 route lags behind at $9,080 after several days of gains. Pacific activity was largely steady at the start of the week. But as the Atlantic continues to grow, positive sentiment has infected the Pacific as Friday saw a run from Western Australia to Qingdao C5. The C5 route is now priced at $8.98, while the Brazil to China C3 was similarly affected and closed at $19.006. The Capesize market is nowhere near where owners had hoped, or happy about it, but a rally like this is welcome and raises hopes of a strong finish to the year.

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Some have described Asian markets as a bloodbath this week with a massive correction in value. Aussie/NoPac round trips are now trading at levels not seen since Q4 2020 as demand and confidence in the basin decline. By the end of the week older and smaller units were accepting rates in the sub $7,000 range to make up for short trips, highlighting the decline here. The Atlantic revived midweek on the back of some much-needed demand north of the field. Transatlantic and fronthaul trips yielded better rates. The East Coast South America early arrival window was slightly affected by the fall in the Pacific Ocean and sentiment doubled here as well. But several US Gulf to Far East contracts were heard to close at $21,500 midweek, with some perceived rate improvement. Period news includes an 82,000-dwt delivery to Japan estimated at $15,000 for a 17/19 month charter.

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A tale of two halves for the week as positive momentum returned to the Asian arena with stronger probes from Indonesia and the North Pacific later in the week. In contrast, the Atlantic lost ground overall with limited support from key regions such as the US Gulf and South America. Period activity included 61,000-dwt open Kandla fixing a year at $12,500 after first four months of trading at 112 percent of BSI. From the Atlantic, a 56,000-dwt open is heard to be set for Spain at $25,000 for a voyage to India via Morocco. The size of the Supermax now sees it in the low $20,000s for transatlantic runs in the US Gulf region. From Asia, a 56,000-dwt open Singapore to Indonesia redelivery scheduled a trip via China for $12,000. A 63,000-dwt open Singapore Indonesia redelivery via Vietnam scheduled a trip at $13,250. The Indian Ocean has seen limited activity. A 58,000-dwt with iron ore at $8,000 has scheduled a trip from EC India Redistribution China.

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Hand size

With minimal activity across the Atlantic and Pacific this week, levels continue to soften. On the continent and in the Black Sea, the level of investigation was further reduced. A 35,000-dwt set from Rouen to West Africa at $15,750. On east coast South America, larger sizes continue to take smaller stems and layers soften with a rumored 36,000-dwt slated to travel the Recalada to Skaw-Passero range at $23,000. In Asia, a 40,000-dwt open in Thailand was scheduled to sail to China via Western Australia at $10,500. There was further activity from the NoPac region with 38,000-dwt fixings from Japan via NoPac at $11,500 a round voyage and 33,000-dwt fixings from Astoria to Japan at $13,500. The period was more active with December-dated 38,000-dwt fixing basis deliveries to China at 108% of the BHSI index.
Source: Baltic Exchange


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