Weekly Freight Recap: 7/08/25

Overview

The dry bulk market presented a muted performance this week, with limited shifts across the main segments. Handysize remained largely flat amid quiet conditions in both the Atlantic and Asia. Supramax showed more positive sentiment, especially in the U.S. Gulf and South Africa, although broader momentum was still fragile. Panamax experienced some regional improvement, particularly in Asia and EC South America, though overall activity remained inconsistent.

Handysize

The Handysize market saw a slow start, with minimal reported activity and flat sentiment. The benchmark index slipped slightly, and rate levels softened across most regions. The Continent and Mediterranean continued to lack fresh demand, while the South Atlantic remained subdued, showing no new enquiries. The U.S. Gulf also stayed quiet, adding slight pressure to an already calm market.

As the week progressed, the market remained broadly unchanged. Activity levels in Europe and South America held steady but thin. The U.S. Gulf showed a bit more movement, with a few fixtures concluded, including a Gulf-to-Europe grain run and a trip to South Brazil. However, details remained limited, and these did not suggest any broader momentum shift. In Asia, market sentiment stayed neutral, with limited updates and stable rate levels despite a possible increase in tonnage availability.

Supramax

The Supramax segment showed signs of renewed strength, led by firmer demand in the U.S. Gulf and encouraging signals from South Africa. The average index rose modestly, supported by stronger numbers being discussed on both transatlantic and fronthaul routes.

Several U.S. Gulf-based grain fixtures helped lift sentiment, with reported rates in line with recent improvements. Although the Mediterranean remained quiet, improved levels in larger Panamax segments may have contributed to a slightly firmer tone. In the east, the market remained steady. While fixing was limited, owner sentiment improved as better numbers circulated, especially out of South Africa, and more period enquiries emerged. One fixture from Southern Africa to China reportedly included a sizeable ballast bonus, reflecting renewed interest in longer haul routes. Overall, fundamentals appeared more supportive, particularly for owners with prompt positions in active loading zones.

Panamax

The Panamax market offered a mixed picture this week. While the index posted a slight gain, activity was uneven across basins. Most of the action centered around EC South America, where forward demand supported sentiment. However, a large supply of available vessels continued to cap rate improvement. Northern Atlantic routes remained largely inactive, with limited fresh cargo emerging.

In the Pacific, conditions became more dynamic mid-week. Growing demand from Australia and Indonesia, alongside firming FFA values, helped drive modest gains. Owners were more confident, and some held back offers, sensing a possible uptrend. Period interest also increased slightly, contributing to a more optimistic tone in the East. Despite the long tonnage list, a cautious shift toward positive sentiment began to take shape, especially for longer duration employment.

Regional Pulse

Atlantic Basin

• U.S. Gulf more active for Supramax and moderately so for Handysize

• South Atlantic remained quiet despite longer-haul interest

• North Atlantic Panamax stayed soft with limited new demand

• EC South America showed forward support, but vessel supply limited gains

Pacific Basin

• Supramax saw mild improvement from South Africa and stable rates in Asia

• Panamax gained traction on stronger Australian and Indonesian demand

• Overall sentiment cautious, but some positive signs on period interest and paper

Handysize-Specific Notes

• European activity flat with balanced fundamentals

• South Atlantic quiet with low enquiry levels

• U.S. Gulf slightly more active mid-week

• Asian market remained largely unchanged

Port & Logistics Disruptions

Evergreen Ship Loses Boxes, Closing Callao Port for Hours On August 1, Peru’s Port of Callao suspended operations for several hours after an Evergreen containership lost around 50 containers while anchored in heavy fog, amid warnings of tsunami activity linked to a Russian earthquake. No injuries or hazardous cargo were reported. Recovery began the same day, marking the second container loss incident in the region in a matter of days.

Freight Market’s ‘Holding Pattern’ Continues in July July’s Logistics Managers’ Index showed modest growth in transportation capacity (52.6), with prices and utilization continuing to rise. Smaller and upstream firms reported the strongest inventory gains, keeping warehouse costs elevated. Despite this, analysts warned that unless capacity growth slows, the freight market is unlikely to see a stronger recovery in the near term.

Outlook

• Handysize remains rangebound across all regions with limited fresh demand

• Supramax support in U.S. Gulf and Indian Ocean could stabilize rates short term

• Panamax Asia market shows early signs of improvement amid tighter paper and Indo/Aussie demand

• Container disruptions in South America may affect broader logistics chains temporarily