Average spot rates for larger bulkers have fallen as supply exceeded demand in most places throughout most of the past week.
The Baltic Exchange’s Capesize 5TC set of spot-rate averages across five key routes dropped 26.6% over the past seven days to $9,735 per day on Friday, falling to its lowest point since early June.
“Overall, the week encapsulated a mixed performance in the capesize market, with varying degrees of activities and sentiment shifts across the Pacific and Atlantic regions,” Baltic Exchange analysts wrote on Friday in their weekly wrapup on the dry bulk market.
Miner BHP fixed two unnamed capesizes on Friday to carry 160,000 tonnes iron ore at $7.40 to $7.45 per tonne from Western Australia to China after loading from 8 to 12 September.
Rio Tinto hired an unnamed capesize on the same day to carry 170,000 tonnes of ore at $7.35 per tonne from Western Australia to China, with loading from 11 to 13 September, according to the Baltic Exchange.
A week earlier, BHP hired an unnamed capesize to carry 160,000 tonnes of the commodity at a higher $7.70 per tonne on a similar voyage, with loading from 4 to 6 September.
Meanwhile, the Panamax 5TC slipped 6% over the past week to $13,040 per day on Friday after going sideways on Monday but then dropping steadily over the next four days.
“The panamax market returned with mixed results this week,” the analysts said.
They noted limited fixture activity in the North Atlantic but pointed out that East Coast South America saw firm demand for September and October.
But spot rates “overall were pegged down” as demand outside of Indonesia failed to materialise as tonnage grew, they said.
Average spot rates for the smaller bulkers continued to climb over the past seven days as robust demand kept sentiment aloft.
The Supramax 10TC rose 3.3% during the past week to reach $9,993 per day on Friday.
“As sentiment remained positive in the Atlantic, a healthy demand from key areas such as the US Gulf and cast coast of South America combined with better levels of cargo from the Continent-Mediterranean saw stronger numbers being achieved,” the analysts said.
Rates on individual fixtures ranged from $8,500 per day for a 58,000-dwt ship sailing from Ko Sichang, Thailand, to Indonesia and then the western coast of India to $16,500 per day for a 58,000-dwt vessel travelling from Louisiana’s the Southwest Pass to the Far East, according to the Baltic Exchange.
The Handysize 7TC gained 8% over the past seven days to land at $9,122 per day on Friday.
“Whilst there was minimal visible activity, bullish sentiment remained for owners across the handy sector,” the analysts said.
