Weekly Freight Recap: 04/09/25

Weekly Dry Bulk Recap Dry bulk sentiment turned softer this week, led by notable declines in Panamax indices as oversupply weighed heavily on both Atlantic and Pacific markets. Supramax rates steadied after earlier strength but began to lose momentum in Asia, while Handysize trade remained broadly balanced with only marginal shifts in sentiment.

Panamax

Atlantic: The Atlantic Panamax market entered September under sustained pressure, with enquiry thin and charterers retaining a clear advantage. Limited activity from key grain routes, particularly out of South America, weighed on sentiment as owners increasingly accepted discounts to secure cover. Transatlantic volumes were subdued, and even front-haul opportunities offered little relief, leaving owners competing aggressively for scarce stems. The supply overhang was particularly acute as early ballasters and prompt units crowded the market, leading to a steady erosion in sentiment. Overall, conditions remained unbalanced, with charterers firmly in control.

Pacific: In the Pacific, a similar pattern unfolded as tonnage availability outpaced demand. A lack of consistent enquiry from both North Pacific and Australian origins placed pressure on regional earnings, with owners unable to resist downward moves from charterers. Despite some ballasting to the Atlantic, oversupply persisted, keeping values under strain. Sentiment weakened further as charterers leveraged the abundance of tonnage to drive rates lower, with little sign of relief until export volumes increase. The week closed on a notably softer tone, with both basins showing parallel weakness and forward momentum absent.

Supramax

Atlantic: The Supramax segment demonstrated relative resilience through the past weeks, buoyed by steady enquiry from the US Gulf, South America, and Mediterranean ranges. However, as September began, momentum slowed with fresh activity more sporadic. In the US Gulf, sentiment remained balanced but with growing divergence between charterers’ and owners’ expectations. The South Atlantic also steadied, holding ground but lacking sufficient new business to push levels higher. Overall, the Atlantic market displayed a finely poised balance, with rates largely underpinned but requiring renewed cargo support to avoid softening.

Pacific: By contrast, the Pacific Supramax market turned more negative as prompt tonnage availability built against limited fresh demand. Enquiry levels from Southeast Asia and North Pacific origins were muted, leading to widening bid–offer gaps. Owners sought to resist downward adjustments but charterers maintained the upper hand, resulting in a gradual erosion of sentiment. Earlier optimism in the basin, driven by a tighter northern list, faded quickly as oversupply became evident. The shift marked a clear divergence from prior weeks, with the Pacific dragging on overall segment performance despite steadier conditions in the Atlantic.

Handysize

Atlantic: The Handysize market presented a generally steady picture, with little movement across major Atlantic regions. In the Continent and Mediterranean, sentiment was flat and activity restrained, while in the US Gulf and South America, enquiry remained light and bid–offer spreads limited progress. Charterers held a slight advantage given the lack of urgency from the cargo side, though rates overall held firm. The balance of positions in these regions suggested limited volatility, with market participants adopting a wait-and-see stance until demand returns in greater volume.

Pacific: In Asia, Handysize sentiment remained broadly stable, supported by a slight tightening of tonnage in certain pockets, though overall levels of activity were modest. North Pacific and Southeast Asia both saw limited fresh business, with owners and charterers negotiating within narrow ranges. The regional market retained a cautious tone, with isolated fixtures failing to generate a clear directional trend. Overall, the Pacific balance kept earnings steady, reflecting the broader subdued but stable pattern observed across the global Handysize segment.