Capesize bulkers reversed course this past week as more dry bulk commodities went to the Far East, ending a three-week slide that put them on the upward swing that smaller dry bulk classes have enjoyed for a month.
The Baltic Exchange’s Capesize 5TC basket of spot-rate averages across five key routes improved 25% over the past seven days to reach nearly $10,700 per day on Friday, despite a temporary rate dip earlier in the week.
The steady rise ended a two-week plummet during which the 5TC dropped 39% to $8,561 per day on 1 September.
“As the week unfolded, there was a gradual uptick in activity, marked by fresh enquiry in the North Atlantic,” Baltic Exchange analysts wrote on Friday in their weekly wrapup of the dry bulk market.
“This led to more robust fixtures being concluded and an increase in trading levels from South Brazil and West Africa to the Far East.
“The week concluded positively, with improved fixtures in both the Pacific and North Atlantic, leading to increased rates and a promising outlook.”
Ashapura Minechem hired an unnamed capesize on Thursday to ship 170,000 tonnes of iron ore at $19.70 per tonne from Giunea’s Port Konta to Qingdao, China, with loading from 15 to 20 September, according to the exchange.
On 30 August, NYK Group fixed an unnamed capesize to ship 170,000 tonnes of ore at a lower $14.25 per tonne from Saldanha, South Africa, to Qingdao, with loading slated to take place between 15 to 20 September.
Meanwhile, supramax and handysize bulkers have continued a steady upward trend this past week that began in early August due to South American grain harvests, Panama Canal delays and trade disruption from the Russia-Ukraine war.
The Supramax 10TC rose 10.1% since 1 September to $11,870 per day on Friday, continuing an upward trend that began on 7 August at $7,545 per day.
“A stronger week overall for the sector, which saw improved activity and stronger rates being discussed,” the analysts said.
“The Atlantic saw healthy demand both from the US Gulf and Continent-Mediterranean with limited fresh tonnage appearing.”
The Handysize 7TC gained 5.7% over the past seven days to reach nearly $10,300 per day on Friday, preserving forward momentum that started on 7 August at $7,007 per day.
This rise continued a hot streak in average handysize spot rates that began at $7,007 per day on 26 April.
“Whilst overall sentiment remained positive in the Atlantic, there was a rather lacklustre feel from the Asian arena,” the analysts said.
“Brokers said the Atlantic saw better levels of fresh enquiry both from the South Atlantic and Continent-Mediterranean regions helping keep rates at reasonable levels.
“From Asia, it was finely balanced with some seeing prompt tonnage availability grow in the north but limited fresh enquiry.”
