Weekly Freight Recap: 17/07/25

Overview

The dry bulk market showed a mixed but largely stable performance this week, with Supramax and Handysize segments maintaining upward momentum, while Panamax experienced mid-week softening after an initially firm start. Sentiment across the Atlantic and Pacific varied, with positional dynamics and forthcoming grain flows playing a key role in shaping rate direction.

Handysize

The Handysize market continued its gradual recovery, with the BHSI closing higher at 647, reflecting a $136 increase in the 7TC average, now at $11,945.

In the Atlantic, demand in the Continent and Mediterranean improved modestly, leading to a more balanced environment. The South Atlantic and U.S. Gulf both showed early signs of recovery, driven by new cargo inquiries and a tightening tonnage list.

Meanwhile, the Asian market remained upbeat, supported by healthy cargo volumes and limited tonnage availability, which sustained upward pressure on rates. Period activity included the ES Honesty (37,052 dwt, 2014) open Dammam fixing for a short period at $12,500, though further details were limited.

Supramax

Momentum in the Supramax segment remained positive, with the 11TC average rising by $353 to reach $16,620.

In the Atlantic, the North Atlantic stayed firm on the back of tight tonnage availability, while EC South America also saw some improvement in demand, though actual fixing activity was limited. Owners in the Continent and Mediterranean maintained firmer ideas, supported by prompt demand in the U.S. Gulf and South Atlantic.

In Asia, the market held steady despite a widening bid-offer gap on some routes. Backhaul interest continued to draw tonnage northward, and the Indian Ocean saw steady inquiry with a tightening list, underpinning bullish sentiment.

On the period front, the Clipper Belle (61,411 dwt, 2014) open Balboa reportedly failed for a one-year period in the mid-teens with Intergis, with no further details emerging.

Panamax

The Panamax market experienced a two-phase week, starting firm but softening by mid-week. The BPI timecharter average posted a $214 correction, ending at $17,700.

Early in the week, the Atlantic Basin remained supported by tight tonnage and strong grain-driven demand, particularly in the North Atlantic and ECSA. However, sentiment turned softer mid-week as bid-offer spreads widened and fixture activity slowed, with charterers pulling back amid weaker FFA signals.

In the Pacific, the market appeared flat initially, with some positional strength on favorable deliveries. However, as the week progressed, rates also softened despite steady underlying demand. Rising tonnage availability and negative paper sentiment pressured owners to narrow their ideas.

Market conditions are currently positional, with forthcoming grain activity from South America likely to heavily influence both Atlantic and Pacific trends.

Regional Pulse

Atlantic Basin

• North Atlantic and U.S. Gulf remain supported for Supramax and Handysize, though Panamax came under pressure mid-week

• EC South America demand mixed, with positional sentiment driving rates

• Limited prompt tonnage keeps smaller segments firm despite wider bid-offer spreads

Pacific Basin

• Asian Supramax and Handysize segments remained stable with healthy demand

• Panamax softened despite steady Indo/Pacific rounds due to rising tonnage and weaker FFAs

• Indian Ocean maintained support with steady inquiry and tightening lists

Handysize-Specific Notes

• Continent and Mediterranean showing modest improvement

• South Atlantic and U.S. Gulf showing early signs of recovery

• Asia remains active and upbeat on balanced fundamentals

Trade & Payment Disruptions

Russian Importers Hit by VTB Account Freezes, Disrupting China Trade

Unexplained freezes on accounts at VTB and its Shanghai branch are disrupting one of the last direct payment channels between Russia and China. This forces importers to reroute payments through other Russian banks charging higher fees or use payment agents that add administrative hurdles and complicate participation in tenders and contracts. Bank staff have been unable to resolve the issue, leaving businesses without clear guidance or solutions.

Looming US Trade Tariffs Could Disrupt Optical Industry

The US plans tariff increases starting August 1 and 12, affecting many countries with rates between 20% and 40%, and over 55% for China. These tariffs challenge manufacturers, distributors, and retailers by impacting global sourcing, pricing, margins, and logistics. Uncertainty remains over enforcement and product-specific changes, while industry groups continue to monitor developments and provide guidance

Outlook

Looking ahead, key focus areas include:

• Panamax market movement tied to South American grain exports

• Persistent pressure in the Atlantic amid softer FFA signals

• Asia-Pacific sentiment linked to cargo flows and tonnage levels

• Trade disruptions from VTB freezes and US tariff hikes affecting broader logistics