Atlantic bulk freight weakens as US Gulf grain rates soften

Atlantic dry bulk freight markets faced pressure from weak cargo demand and ample vessel supply, while Asia offered firmer support for smaller ships, according to Hellenic Shipping News — Dry Bulk’s 26 October report, sourced to the Baltic Exchange. Panamax-Kamsarmax conditions weakened across both basins, with the P5TC declining throughout the week. The Atlantic was substantially softer as subdued grain and mineral demand, limited fresh cargo and excess tonnage strengthened charterers’ negotiating position.

Transatlantic trading slowed and owners lowered their expectations for fronthaul employment. An 82,000-dwt vessel available in the North Continent secured a transatlantic round at $22,500, while a 75,000-dwt ship agreed a similar voyage with delivery on the East Coast of South America at $33,000. South American fronthaul rates also deteriorated: an 82,000-dwt vessel fixed at $21,000 with Singapore delivery early in the week, before conditions weakened further. Australian demand and a broadly balanced Indonesian market left the Pacific comparatively better supported.

In the Ultramax-Supramax segment, the index closed above the previous week despite subdued trading. US Gulf grain freight softened as enquiries failed to absorb an expanding vessel list. Hellenic Shipping News reported rates ranging from $34,000 to $31,000 during the week for a 64,000-dwt vessel carrying grain from the US Gulf to the West Mediterranean. Longer voyages to the Far East attracted lower rates, while the Continent and Mediterranean saw little activity.

Asia provided the principal support for Ultramax-Supramax trading. Although North Pacific grain business slowed, stronger backhaul demand helped rates rise. A 63,000-dwt ship fixed from North China to West Africa at $27,500. Firm spot conditions also encouraged operators to secure period cover for backhauls, with a 64,000-dwt vessel available in Busan taken for a minimum four to about six months at $24,250.

Handysize trading improved modestly, led by the South Atlantic, where healthy demand met tight prompt availability. A 38,000-dwt vessel open in Santos on 30 October was placed on subjects for Recalada to South America’s west coast at $36,000. The US Gulf remained weaker as demand lagged vessel supply, while limited Pacific tonnage supported backhaul and round-trip rates. A 37,000-dwt ship fixed from Recalada for five to seven months at $19,500, with worldwide redelivery.