Weekly Freight Recap: 08/05/2026

Overview

The dry bulk market remained firm this week, but the move was uneven by size and basin. Capesize and Kamsarmax strengthened most clearly, Ultramax stayed firm but became more selective, and Handysize improved in East Coast South America while parts of the US Gulf and Europe lost momentum.

The market is now split between firmer grain and mineral basins on one side and oversupplied Mediterranean and Continent positions on the other.

Bunker prices eased with crude during the week, but freight did not soften in the same way. Owners remain cautious on forward cover because Middle East risk is still unresolved and the Persian Gulf remains difficult to price normally.

Handysize

Handysize remained split by region.

East Coast South America strengthened again and remains the clearest area of support. Soybeans and sugar continued to drive demand, and prompt grain cover still needs to be treated carefully.

The US Gulf was broadly flat to mixed. Better enquiry appeared earlier in the week, but more tonnage entered the market and capped further upside.

The Black Sea stayed soft, with heavy supply and limited grain demand keeping rates under pressure.

The Continent softened further as too many prompt ships competed against limited cargo. Most enquiry sat further forward, leaving nearby fixing weak.

Asia remained firm and continued to offer one of the cleaner prompt markets.

Overall, Handysize strength is concentrated in East Coast South America and Asia, while the US Gulf, Continent and Mediterranean look less urgent.

Ultramax

Ultramax stayed firm overall, but the market became more route-specific.

East Coast South America remained well supported, especially on fronthaul and north Brazil business. The basin stayed balanced, with steady fixing flow rather than any major squeeze.

The US Gulf stayed firm but mixed by route. Fronthaul improved and remained the clearest support, while some Europe-facing routes eased slightly.

The Black Sea and Mediterranean remained soft, with structural oversupply still limiting recovery despite some stabilisation.

The Continent lost some of last week’s tightness as more tonnage became available and prompt cargo thinned.

Overall, Ultramax still has a firm base, but buyers can be more patient on Europe-facing cover while remaining cautious on fronthaul and Pacific-linked stems.

Kamsarmax

Kamsarmax strengthened again and remains the cleanest firm segment.

South American grain stayed the best Atlantic outlet, supported by steady cargo flow and tighter prompt supply.

The US Gulf improved with the wider Atlantic tone, though it still did not lead the market. The basin is supported, but South America remains stronger.

The Pacific stayed firm, helped by strong mineral and Australian business. This remains one of the clearest areas of demand support.

Europe remained mixed but firm, with mineral demand doing more to support the basin than grain.Overall, Kamsarmax combines firm physical demand with a tightening vessel balance, making it the strongest segment for the next few weeks.

Regional Pulse

Atlantic Basin South America remains the main source of strength, especially for grain-linked employment. The US Gulf is firmer in Kamsarmax and Ultramax but less convincing in Handysize. The Continent and Mediterranean remain pressured by oversupply.

Pacific Basin The Pacific remains strong, particularly for Kamsarmax and prompt Handysize positions. Mineral demand and Australian activity continue to support the market.

Mediterranean / Black Sea This remains the weakest area. Supply is heavy, grain demand is limited, and owners continue to face pressure unless they can ballast into stronger regions.

Market Drivers

Fuel and energy Bunker prices eased with crude, but not enough to reset freight. Owners remain cautious because Gulf risk is still unresolved.

Security and routing The Persian Gulf remains difficult to price normally, and premiums for Red Sea and India-linked employment remain above normal.

Panama Canal Canal economics remain supportive for freight, with Atlantic cargoes still competing for Asia-bound vessel capacity and longer voyage chains reducing effective supply.

China demand risk Mineral demand continues to support Kamsarmax and larger sizes, but the broader demand picture remains mixed rather than fully bullish.

Europe Activity improved after the holiday period, but Mediterranean and eastern Mediterranean vessel supply remains too large for a clean recovery.

Outlook

Handysize should be bought earlier in East Coast South America and on prompt Pacific business. Buyers can wait longer in the US Gulf, Continent and Mediterranean unless timing is fixed.

Ultramax remains firm, especially on fronthaul and Pacific-linked stems. Europe-facing cover looks less urgent where cargo timing allows.

Kamsarmax remains the strongest segment, with South America and the Pacific best supported. Waiting for a softer prompt market still looks risky.

Across all segments, freight remains supported by tighter vessel positioning, unresolved Middle East risk and stronger mineral and grain basins, even though bunker prices have eased.