The Capesize sector displayed strong momentum in Asia due to a limited vessel supply, steady demand from miners and operators, and increased coal cargoes. The Australia-China route index (C5) closed at $9.86/tn on Friday.
In the Atlantic Basin, increased cargo movement from Southern Brazil and West Africa to China, coupled with a shortage of available vessels, strengthened rates. The Brazil-China route (C3) ended the week at $19.98/tn, while the Continent to Asia route (C9) closed at $32.81K/day. Transatlantic round trips (C8) reached $9.31K/day.
Kamsarmax market
The Atlantic Basin, especially the north, remained calm, with a large vessel supply and weak demand pushing rates down. The East Coast South America (ECSA) to Far East route saw rates at $14-14.5K/day + 400-450K BB, while Continent to Asia trips ranged from $13.5-15.5K/day. Transatlantic round trips were at $5.5-7.5K/day.
In Asia, oversupply caused downward pressure, though vessel availability tightened towards the end of the week. Indonesia-Far East round trips ranged from $10.5-12.5K/day.
Supramax & Ultramax market
Southeast Asia started the week positively, but midweek saw a decline due to lower demand. A rise in Australian cargoes helped limit losses.
- UMX rates:
- SE Asia-Far East: $13-14.5K/day
- North Pacific round trips: $10-11.5K/day
- W. C. India trips: $12.5-14K/day
- Atlantic Basin return trips: $12-13.5K/day
In the Middle East Gulf and West C. India, the market saw minor corrections, with Ramadan expected to slow activity further.
- UMX rates:
- Far East trips: $9-10.5K/day
- Short ME Gulf-W. C. India trips: $7.5-9K/day
- Atlantic Basin trips: $5-6.5K/day
The American Gulf showed slight improvements, absorbing excess capacity midweek, with large fluctuations in rates.
- UMX rates:
- Transatlantic trips: $13-14.5K/day
- Asia trips: $15-16.5K/day
- SE Asia-China: $17-18.5K/day
- Transatlantic (Mediterranean/Continent): $15.5-17K/day
The Continent remained balanced, with limited vessel and cargo availability.
- UMX rates:
- Local trips: $9-10.5K/day
- Scrap cargoes to the Mediterranean: $11-12.5K/day
- Asia-bound trips: $14-15.5K/day
The Mediterranean had low activity, with a positive note being the limited vessel supply.
- UMX rates:
- Mediterranean-Asia: $12-13.5K/day
- Atlantic Basin: $5.5-7K/day
- Intra-Mediterranean (excluding war zones): $8.5-10K/day
Handysize market
The Continent saw an increase due to limited capacity and rising demand, particularly for late-February cargoes.
- Handysize rates:
- Round trips: $13-14.5K/day
- Scrap cargoes to the Mediterranean: $13-14.5K/day
- Transatlantic trips: $7.5-9K/day
The Mediterranean showed slightly improved closings, with Western Mediterranean leading, while competition in the east remained high.
- Handysize rates:
- Intra-Mediterranean: $5-6.5K/day
- Continent trips: $5-6.5K/day
- Atlantic Basin trips: $5.5-7K/day
- Asia trips: $9-10.5K/day
In the American Gulf, cargo flow remained steady, though few closings were recorded. Vessel availability remained high.
- Handysize rates:
- Atlantic Basin: $10-11.5K/day
- Asia: $12-13.5K/day
The ECSA region saw downward corrections due to high vessel availability, despite strong demand.
- Handysize rates:
- Transatlantic (Continent-Mediterranean): $14.5-16K/day
- Asia: $14.5-16K/day
In Asia, Indonesia and Australia remained subdued, while Korea and Japan were active. The Middle East Gulf and W. C. India showed minimal changes.
- Handysize rates:
- Far East & NOPAC round trips: $8.5-10K/day
- SE Asia-China: $8.5-10K/day
- W. C. India-China: $6-7.5K/day
Disclaimer
This report is for general informational purposes only and does not constitute investment advice.