Weekly Freight Recap: 21/08/25 (1)

Overview

The dry bulk freight market ended the week on a firmer note overall, with gains in the Atlantic supporting Panamax and Supramax indices, while Handysize sentiment strengthened across both hemispheres. The Pacific remained softer for Panamax, but Supramax and Handysize showed relative balance with selective firmness.

Handysize

Atlantic: The Handysize market showed a more positive development overall, with both North and South Atlantic regions recording stronger numbers. Fresh inquiry in the North supported firming sentiment, particularly for grain runs into northern Europe and fronthaul activity from South America. In the Continent–Mediterranean, balance in the tonnage-to-cargo ratio shifted slightly in favor of owners, giving a firmer tone to fixtures. South America saw steady demand, particularly for short-haul regional business as well as fronthaul voyages, with sentiment improving into the weekend. Market participants noted that overall activity levels were healthier than in recent weeks, which contributed to a more optimistic outlook.

Pacific: In Asia, the market remained broadly balanced with little fresh news. Sentiment held steady as cargo supply and tonnage availability were largely aligned, resulting in limited volatility. There was no significant change in momentum, though some owners managed to secure firmer returns on selective business. Period activity also surfaced, suggesting that some charterers see value in securing longer-term cover at current levels, lending confidence to the market. While not as dynamic as the Atlantic, the Pacific retained a steady footing, with the broader tone supportive of stability.

Supramax

Atlantic: The Supramax market displayed a mixed picture in the Atlantic, with a clear divide between North and South. The US Gulf was relatively active, with positional demand driving firmer sentiment, particularly on transatlantic business. However, some brokers considered fronthaul levels to be near a peak, with limited further upside. The South Atlantic was steadier but less dynamic, with a shortage of fresh inquiry restricting further gains despite undercurrents of support from upcoming grain stems. In the Continent–Mediterranean, the market remained balanced yet lacked clear momentum, with activity varying considerably across sub-regions. The overall tone was one of relative stability but without decisive movement in either direction.

Pacific: In Asia, the Supramax sector held a healthier undertone compared with Panamax. The Pacific basin maintained a firmer tone, supported by steady flows from Southeast Asia and Australia. Chartering interest in the Indian Ocean was less robust, creating some downward pressure, particularly for longer voyages into Asia. However, regional demand from Indonesia and Australia kept market sentiment broadly steady, with levels considered sustainable in the short term. Overall, the Pacific reflected a firmer sentiment compared to the previous week, even if Indian Ocean activity showed signs of easing.

Panamax

Atlantic: The Panamax market in the Atlantic was buoyed by a more constructive tone this week, with firm support from grain and mineral demand. The North Atlantic was led primarily by fronthaul activity, particularly for coal and grain movements into Asia, while shorter mineral runs also recorded stronger sentiment as fresh inquiry replenished the market. Transatlantic business remained less visible but stable, underpinned by Baltic coal lending some balance. From South America, demand for September arrivals continued to underpin the market despite a slightly slower pace compared to the previous week. Rates in this region trended higher across most arrival dates, with sentiment holding steady on the back of healthy forward coverage. Overall, the Atlantic showed better resilience, with steady inquiry supporting market balance even as tonnage availability built up.

Pacific: In contrast, the Pacific returned a softer performance. The tonnage list continued to lengthen, and while activity levels out of Australia and Indonesia were steady, the weight of available vessels placed pressure on sentiment. A temporary push in the region midweek failed to gain lasting momentum, and fixtures eased slightly as charterers held the upper hand. Cargo flow remained present, but not sufficient to absorb the tonnage overhang, leaving the basin fragile and lacking clear direction. The market here remains vulnerable, with sentiment fragile despite healthy demand fundamentals from Southeast Asia.