- Small Handy
The market in China remains relatively quiet this week, with vessels of 10,000 to 13,000 DWT offered at rates ranging from high USD 4,000 to low USD 5,000 per day. A 13,000 DWT vessel was fixed at low USD 5,000 for a one-trip charter (1TCT) to Korea, while a 12,000 DWT ship was fixed at high USD 4,000 for steel pellets from Fangcheng to Koh Sichang. Fertilizer shipments from Yangzhong to Koh Sichang traded around low to mid USD 20 per metric ton. Overall, the Chinese market remains competitive, showing a downward trend in hire rates. In Southeast Asia, the market is more active than last week. A 12,000 DWT vessel was rated mid USD 5,000 for steel cargo from Cigading to Bangkok, and aiming for high USD 9,000 to low USD 10,000 for trips trading to Australia. Bagged rice shipments from Thailand to Japan are exchanging at rates from high USD 5,000 to low USD 6,000. Owners still seek higher rates in this area, but it appears difficult to push rates up further. The East Coast India (ECI) market continues to offer better hire rates compared to other regions. Scrap cargo from Japan to ECI is fixed at high USD 5,000 to low USD 6,000 for a 12,000 DWT vessel. Vessels around 19,000 DWT are being offered mid to high USD 7,000 for one-trip charters from ECI to Jakarta. Similarly, 19,000 DWT vessels trading between Southeast Asia and the Mediterranean/Black Sea are rated at similar levels. The Indian market is achieving higher rates for shipments returning to the Middle East.
2. Handysize
The week ended on a positive note, bringing renewed optimism across both the Atlantic and Pacific basins. The BHSI recorded a 7-point gain, closing at 581, while the 7TC average rate stood at $10,451. In the U.S. Gulf and South Atlantic, a surge in cargo inquiries—coupled with a shortage of available tonnage—drove rate improvements. Meanwhile, the Asian market continued to build upward momentum. Early signs of firmer rates have instilled a sense of cautious confidence among stakeholders. Although activity in the Continent and Mediterranean remained subdued, sentiment stayed positive, resulting in marginal rate increases. Overall, tightening vessel supply and fresh demand in key regions are supporting the current upward trend, particularly in Asia and the Atlantic southbound routes.
In Pacific, it is reported that a 23.000 DWT vessel has been fixed on time charter at a rate in the mid-$6,000s / day.
Supramax
In South America, the market remains soft with limited fresh activity. Freight rates continue to be pressured by an oversupply of available vessels. A few cargoes of fertilizer and grain were reported, but overall demand is insufficient to push rates upward. Owners are holding for higher levels, but charterers remain cautious given the current low volume of cargoes. In the Mediterranean and Continent region, demand is subdued with slow activity, exerting downward pressure on freight rates. Some cargoes of steel and coal have circulated, but vessel availability remains ample. The market sentiment remains weak as charterers seek competitive rates amid limited cargo flows. In Asia, MV ZH CHANG XIN (57,000 DWT, 2013), open at Penang between 21-23 May, was fixed for one trip from Indonesia to Thailand at $13,750 per day. MV ATHENA (58,000 DWT, 2012), open at Koh Sichang, Thailand, was fixed from Indonesia to Japan at $10,000 per day, DOP basis. MV ASTRID SCHULTE (61,000 DWT, 2017), open at Chittagong, was fixed for one trip carrying salt from Australia to Japan at $11,750 per day. Despite some healthy fixtures, the general sentiment is cautious as cargo volume remains uneven. The tonnage supply in Southeast Asia is still relatively high, keeping rates under pressure in some routes.
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