Mid-April 2025 finds the dry bulk market caught in a stormy swirl of trade wars, weather woes, and shifting cargo flows. Capesize rates falter under tariff pressures, panamax struggles with muted demand, yet supramax and handysize find flickers of resilience. Sanctions, port fees, and production cuts reshape routes, while AI whispers promise for efficiency. This is a sector battling headwinds with grit—let’s chart its course.

⏬ Capesize Market: Weathering the Squall

Earnings Snapshot

Capesize bulkers, the iron ore titans, sail through choppy waters as rates skid to a six-week low. The Baltic Exchange’s index averages $15,148 per day, a 9% drop week-on-week, with a mid-week dip to $14,367 before a slight rebound. March highs of $24,000 per day feel distant, with West Australia-to-Qingdao (C5) rates plunging to $7.79 per tonne (down 25% weekly, though up 35% in a day) and Brazil-to-China (C3) at $18.74 per tonne after an 18% tumble. Weak Chinese iron ore imports (down 6% year-on-year in March) and tariff shocks drag sentiment, yet fundamentals hint at stabilization.

Demand and Supply Pressures

Extreme weather batters key exporters. Rio Tinto’s Pilbara shipments fall 9% to 70.7 million tonnes in Q1, hit by four cyclones costing 13 million tonnes—2025 guidance leans toward the low end of 323-338 million tonnes. Vale’s Brazilian output slips 4% to 67.7 million tonnes, though sales rise 4% to 66.1 million tonnes. China’s Q1 iron ore arrivals drop 9%, with port stocks down 6 million tonnes to 150 million. Yet, Fearnley Securities eyes April import normalization, and Brazil’s March exports climb 8%. Tariff fears curb Pacific activity—Rio Tinto fixes Dampier-to-Qingdao at $7.70 per tonne—while Atlantic routes like Tubarao-to-West Africa hit $18.15 per tonne.

Global Headwinds

U.S.-China tariffs (145% vs. 125%) and EU countermeasures jolt the market, with Braemar noting a “freefall” tied to Trump’s trade moves. A three-month tariff pause lifts forward freight agreements (FFAs) to $16,000 per day for April and $18,000 for Q2, signaling cautious optimism. However, Vale’s vague 325-335 million tonne guidance and Colombia’s coal cuts (Cerrejon down to 11-16 million tonnes) dim cargo hopes—capesize battles to hold its course.

Iron ore is loaded at the Ponta da Madeira terminal in Brazil - For illustrative purposes

⏳ Panamax Market: Adrift in Uncertainty

Rate Struggles

Panamax bulkers, versatile grain and coal carriers, drift in a softer market. Baltic Panamax Index rates hover around $11,500 per day, down 7% week-on-week, reflecting tariff-driven gloom and weaker coal flows. Secondhand prices for five-year-old vessels fall 12% from Q3 2024 peaks, per Veson Nautical, as global uncertainty stifles demand. Activity remains subdued, with limited fixtures reported—owners eye stabilization as bunker price swings complicate voyage trades.

Regional Dynamics

Colombia’s coal output cuts weigh heavily—Cerrejon’s reduction to 11-16 million tonnes (from 19 million in 2024) slashes capesize and panamax cargoes. Exports to Asia-Pacific (South Korea: 10 million tonnes, China: 6.65 million tonnes) rise, but long voyages (55-67 days) and high freight costs deter buyers. China’s coal imports from Colombia drop to 2 million tonnes in Q1 (from 3.9 million), favoring Australian coal’s $14 per tonne CFR price edge. Panamax shipments fall 24.6% to 11 million tonnes as capesize takes share—owners face a thinning cargo pool.

Trade Shifts

U.S. port fee fears for Chinese-built ships (70% of panamax orderbooks) push buyers toward Japanese tonnage, per Pacific Basin’s Martin Fruergaard. Scaled-back fees ($18 per net tonne, rising to $33 by 2028) ease concerns, but contractual haggling looms. Glencore’s Colombian cuts and EU decarbonization shift coal to Asia, stretching tonne-miles yet exposing fragility—panamax treads water, seeking firmer ground.

Coal being loaded onto a ship in the port of Jiujiang - For illustratives purposes

⏱️ Supramax Market: Flickers of Fortitude

Earnings Resilience

Supramax bulkers, nimble mid-sizers, show grit amid market malaise. Pacific Basin’s supramax fleet earns $12,210 per day, 55% above the Baltic Supramax Index, with Q1 operating margins up 61% to $820 daily. Secondhand prices dip 9% from Q3 2024, but fleet renewal (e.g., purchasing a 2018-built 38,000-dwt handysize) bolsters efficiency. FFAs for Q3-Q4 signal $9,000-plus daily—owners hold steady, banking on cargo coverage.

Activity and Coverage

Pacific Basin covers 95% of Q2 supramax days at $12,400, with 37% of H2 at $12,090—strong bookings shield against softening. China’s equipment exports (up 10.8%) and ASEAN trade (up 7.1% to CNY1.71 trillion) lift minor bulk demand. However, iron ore weakness and Colombia’s coal volatility (February exports down 21.1% year-on-year) cap gains. Supramax thrives on flexibility—steel trades optimize port times, dodging 2024’s congestion woes.

External Forces

U.S. sanctions on Iranian oil and Chinese refiners ripple indirectly, tightening tanker markets and nudging bunker costs. Tufton Assets sees bulkers benefiting from trade rerouting—tariffs spur new routes, favoring supramax’s versatility. AI adoption, led by South Korea, streamlines claims and fixtures—supramax sails with cautious optimism, leaning on operational savvy.

⏸️ Handysize Market: Steady Under Strain

Rate Rundown

Handysize bulkers, the fleet’s smallest stalwarts, navigate with poise. Pacific Basin’s handysize earnings hit $10,940 per day, 37% above the Baltic Handysize Index, with Q2 77% covered at $11,390 and H2 25% at $10,150. Secondhand prices fall 9% from Q3 2024, yet fleet upgrades (e.g., buying a 2020-built 40,000-dwt vessel, selling 21-year-old units) keep margins firm. Operating days rise to 6,950, up 300 year-on-year—efficiency drives returns.

Market Moods

China’s Q1 export growth (6.9% to CNY6.13 trillion) and ASEAN trade surge bolster cement and grain flows, but U.S. port fee threats (exempting vessels under 55,000 dwt) shift focus to Japanese-built ships (70% of Pacific Basin’s fleet). Colombia’s coal export swings (4.2 million tonnes in February, up 54.7% month-on-month) disrupt planning—handysize leans on diversified cargoes to weather volatility.

Influencing Factors

Tufton’s Q1 earnings dip to $8 million (from $11.76 million), with a -10.4% NAV return, reflecting rate softness. Yet, the fund eyes tariff-driven rerouting as a boon—handysize’s agility suits reconfigured trades. Rio Tinto’s bauxite boom (15 million tonnes, up 12%) lifts capesize and handysize tonne-miles—handysize holds firm, banking on niche strength.

🌐 What’s Moving It: Trade and Turmoil

Cargo and Supply

Iron ore falters—Rio Tinto’s $RIO (+1,21%)
$RIO (-1,8%)
$RIO (-1,66%) 9% shipment drop and Vale’s $VALE (-2,22%)
$VALE3 (-2,44%) 4% output decline shrink capesize cargoes, with China’s Q1 arrivals down 9%. Colombia’s coal cuts (10 million tonnes lost) hit capesize and panamax, though Brazil’s 8% March export rise and China’s equipment trade (up 10.8%) offer lift. Weather (Australian cyclones, Brazilian rains) and blockades (Colombia) disrupt flows—cargo volatility shapes the market’s pulse.

Global Forces

U.S.-China tariffs and U.S. port fees ($18-$33 per net tonne by 2028) spark uncertainty, though exemptions (small vessels, ballast arrivals) soften the blow. U.S. sanctions on Iranian oil and Chinese refiners tighten bunker markets, while Houthi strikes in Yemen add geopolitical heat. Bulkers benefit from rerouting—Tufton sees them outpacing containers—yet trade war fears cloud the horizon.

🌐 Market and Stocks: Value Amid Volatility

Stock Swings

Dry bulk stocks reel under tariff pressures. Tufton’s $SHIP Q1 profit falls to $8 million from $11.76 million, with a -10.4% NAV return as asset values slide. Pacific Basin’s $2343 (+0,77%) shares trade at a “big discount” to NAV, prompting a $40 million buyback. Secondhand prices drop—capesize down 11%, panamax 12%, supramax and handysize 9% from Q3 2024—yet Q1 rates defy the gloom, hinting at undervaluation.

Investor Perspectives

Analysts view the sell-off as overdone. Firms with lean balance sheets (25% debt-to-asset ratios) trade at trough levels despite firm rates and high newbuild costs. Pacific Basin’s fleet renewal and margin gains (up 61%) position it for resilience, while Tufton bets on rerouting to lift yields. Veson’s Park predicts a 2026 price rebound if trade stabilizes—investors weigh near-term pain against long-term promise.

Sector Outlook

U.S. tariff pauses and scaled-back port fees lift sentiment, but Chinese tariffs threaten consumer costs. Aging fleets (15% over 20 years) and low orderbooks (down 26% in Q1) signal future tightness—2026 looms as a turning point. Stocks lag fundamentals, ripe for a rebound if tariffs ease—bulkers stand poised, undervalued in the storm.

🌐 Outlook: Choppy Yet Hopeful

Fluid Futures

Capesize lingers at $15,000-$18,000 daily—tariffs bite, fundamentals nudge recovery. Panamax at $11,000-$12,000—coal cuts sting, stabilization looms. Supramax holds $12,000-$13,000—coverage shields—resilient. Handysize at $10,000-$11,000—agility endures—steady. AI and rerouting offer upside—2026 glimmers if trade steadies.

Your Call

Will capesize rebound or handysize hold the edge? Drop your take—let’s navigate the seas! 🚢

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The dry bulk market in mid-April 2025 is wrestling with softening rates and a whirlwind of global trade tensions. Capesize battles a tonnage glut, with rates dipping despite late-week flickers of recovery, while Panamax sees soybean support erode under oversupply and macro uncertainty. Supramax and Ultramax limp along with cautious owners, and Handysize remains stagnant as tonnage builds. U.S.-China tariff wars—escalating to 145% vs. 125%—and EU countermeasures jolt sentiment, while Black Sea grain woes and Chinese-built ship fees add pressure. Companies tweak strategies, but the market’s grit is tested as of April 11, 2025.

This update dives into Capesize, Panamax, Supramax/Ultramax, and Handysize, highlighting the forces at play. From trade wars to tonnage shifts, here’s a clear, engaging rundown !

⏬ Capesize Market: Tonnage Drags, Rates Rebound

Market Trends and Rates

Capesize bulkers, the titans of dry cargo, hit choppy waters this week—average time-charter rates slid from $16,728 to $14,952 by week’s end, reflecting midweek slumps. In the Pacific, Western Australia-to-China rates dropped from $7.95 to $7.20 per tonne, clawing back to $7.70 as miners stayed active. Atlantic Brazil-to-China rates fell from $20.67 to $18.71 midweek, recovering to $19.185 with late bids, while North Atlantic fixtures softened. Spot rates settled at $14,768/day—a 6% weekly dip—though a late $401 uptick suggests a tentative floor.

Demand and Tonnage Dynamics

West Australia sees steady enquiries for late April and May, with solid Pacific cargo volumes, but spot tonnage remains heavy, and May ballasting is thick. South Brazil and West Africa keep cargo flowing in the Atlantic, yet surplus ships mute gains. One operator unwound freight hedges from $31,300/day to $23,700/day for May-June, pocketing a $900,000 gain as spot rates lagged—Newcastlemax premiums hold, but the market’s soft, leaning on late-week lifts for hope.

Tariff and Trade Impacts

U.S.-China tariffs—now 145% vs. 125%—and EU countermeasures at 25% on U.S. goods from April 15 stoke trade war fears. Analysts flag bulkers’ exposure to a potential recession and U.S. grain/coal export tariffs, though a 90-day U.S. tariff pause (excluding China) boosts stocks like some major players by over 11%. Black Sea grain forecasts disappoint—Russian wheat exports for 2025 are pegged at 41M tonnes, down from 52.4M—curtailing Capesize demand further.

⏳ Panamax Market: Oversupply Prevails, Grains Weaken

Market Performance

Panamax bulkers, the mid-size workhorses, face mounting pressure—Atlantic rates plunged as oversupply and tepid demand handed charterers the reins. Pacific rates sagged too, with scant enquiries from northern regions and Indonesia, plus a growing tonnage list widening bid-offer gaps. South America’s soybean surge—fueled by pricing—lost steam, with late April fixtures hovering at $15,250 plus a $525,000 bonus, down from prior levels. Macro clouds keep sentiment dour, despite midweek Australia-to-China rates at $11,500 for larger vessels.

Regional Dynamics

Trans-Atlantic routes bore the brunt—low demand and softer oil prices dragged rates below benchmarks. North Coast South America grains offered a lifeline, but gains faded as the week closed, with Asia’s northern basin stalling—midweek Australian demand provided a brief uptick. Black Sea grain exports—projected at 94.4M tonnes for 2025, a 16% drop—hit Panamax hard, especially with Russian volumes down sharply. Period deals stayed scarce—future uncertainty stifles action.

Tariff and Strategic Shifts

The U.S.’s 145% tariffs on China, met with China’s 125% retaliation, cast a shadow—EU’s 25% on U.S. soybeans from April 15 could redirect flows. One Greek firm shifted years ago from Capesize to smaller ships, eyeing regional trades to dodge trade war fallout—others brace for impact as U.S. grain exports face risks. Panamax clings to soybean support, but oversupply and tariffs threaten the balance.

⏱️ Supramax/Ultramax Market: Quiet Persists, Caution Reigns

Regional Activity

Supramax and Ultramax, the versatile mid-tier haulers, stayed subdued—Atlantic rates sagged under tonnage oversupply and weak backhaul demand, with U.S. Gulf fronthaul rumored in the $13,000s. South Atlantic held steady—a 63,000-dwt fixed at $19,000 to Denmark—while West Africa saw a scrubber-fitted vessel at mid-$13,000s to China. Pacific demand split—Indonesia showed life with a 64,000-dwt at $16,000 to East India, but northern routes lagged, fixing at $12,000 for a Japan round. The 11TC average slipped from $12,429 to $12,058 by week’s end—sentiment’s soft.

Market Sentiment

Owners resist rate cuts in the Mediterranean and Indian Ocean, but caution rules—period activity’s nearly stalled amid tariff war jitters. South Atlantic balances out, yet Atlantic and Pacific weakness dominates, with oversupply in Asia dragging the mood. Analysts note steel and cement—key cargoes—face tariff hits, though rerouting could offset some losses. The sector’s quiet—small positives flicker—but confidence remains elusive.

Trade and Tariff Pressures

U.S. tariffs at 145% on China, countered by 125%, and EU’s 25% on U.S. goods from April 15, per global reports, threaten Supramax/Ultramax volumes—Black Sea’s 49.5% Q1 export drop (notably ultramax at zero) adds strain. Proposed U.S. fees on Chinese-built ships widen valuation gaps—owners like one Norwegian hybrid carrier limit U.S. calls as a precaution. The market treads water—trade shifts loom—but near-term softness persists.

⏸️ Handysize Market: Stagnation Holds, Tonnage Builds

Market Conditions

Handysize bulkers, the smallest dry cargo movers, saw another tough week—Continent and Mediterranean stayed quiet, rates dipping slightly with little action. South Atlantic and U.S. Gulf weakened too—a 36,000-dwt fixed at $16,000 to West Africa, and a 39,000-dwt at $12,500 to West Med—as tonnage counts rose. Asia’s list grew all week, pushing rates down—a 38,000-dwt hit $11,500 with steel to Indonesia. Sentiment’s flat—pressure mounts, no relief in sight.

Activity and Dynamics

Activity’s minimal across basins—steady but uninspired, with owners holding rates where they can. Black Sea’s grain slump—Q1 at 9.4M tonnes, down 49.5%—clips Handysize wings, with Russian and Ukrainian drops steep. One hybrid carrier fleet reported $22,400/day Q1 earnings, down from $28,527, hit by dry bulk softness and less optimal trading—others feel the same pinch.

Tariff Considerations

U.S.-China tariff escalation and EU’s 25% on U.S. goods from April 15 could ripple to Handysize—regional pivots by firms like one Greek player aim to sidestep fallout. U.S. port fees on Chinese-built ships loom—11 of 16 vessels in one fleet are China-made, prompting U.S. pullbacks. The sector’s stuck—stable but lackluster—awaiting trade clarity.

🌐 What’s Driving It: Tariffs, Trade, and Tonnage

Global Trade Tensions

U.S. tariffs hit 145% on China, met by 125% retaliation—EU counters with 25% on U.S. goods from April 15—sparking fears of recession and trade freezes. A 90-day U.S. tariff pause (ex-China) lifts shipping stocks, but Black Sea grain deals falter—exports down 49.5% Q1—curbing bulker demand. Analysts see short-term pain, long-term tonne-mile gains as flows reroute—DNB flags dry bulk’s tariff exposure.

Market and Strategic Moves

Tonnage oversupply dogs all tiers—Pacific Capesize and Atlantic Panamax hit hardest—while Q1 newbuild orders tanked to 39 globally, with China at a 32-year low (13). Deliveries rose to 152 units, skewing small, as firms like one Norwegian hedge fund and a Greek operator shift strategies—some exit Capesize, others dodge U.S. ports over Chinese ship fees. IMO’s carbon deal falls short—30% by 2030, not enough—adding decarbonization pressure.

🌐 Outlook: Uncertain Tides

Capesize at $14,000-$15,000/day—tonnage drags, late lifts tease—trade wars key. Panamax near $11,000-$15,000/day—soybeans wane, oversupply bites—uncertainty grows. Supramax/Ultramax around $12,000/day—muted, positional—tariffs loom. Handysize steady—rates slip, no spark—flatline persists.

1 Year T/C Dry Bulk - April 9th

💬 Your View?

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The dry bulk market in early April 2025 is a tale of cautious stability and looming disruption, shaped by seasonal swings and global policy shifts. Capesize sees a Pacific rebound fade as Atlantic demand wanes, while Panamax rides a soybean wave but faces tariff uncertainty. Supramax and Ultramax stay subdued amid slow activity, and Handysize remains flat with little spark. Trump’s new U.S. tariffs—34% on Chinese imports—and sanctions on Russian grain movers are rattling trade flows, while fees on Chinese-built ships loom large. Coal cuts in Colombia and holiday lulls in Asia add to the mix. It’s a market balancing resilience with risk, with headlines driving the narrative as of April 4, 2025.

This update digs into Capesize, Panamax, Supramax/Ultramax, and Handysize, spotlighting the events shaping them. From trade wars to tonnage trends, here’s a clear, engaging breakdown—easy to read, packed with insight.

⏬ Capesize Market: Pacific Flicker, Atlantic Fade

Market Activity and Rates

Capesize bulkers, the giants of dry cargo, kicked off the week slowly with holidays in Singapore (Hari Raya Puasa), but the Pacific saw a midweek lift—Western Australia-to-China (C5) rates climbed from mid-$8 per tonne to $9.235, with miners fixing in the low $9s. By April 4, though, momentum fizzled—holidays in Hong Kong and China softened activity, pulling C5 back to $8.78. In the Atlantic, Brazil-to-China (C3) held at $21.815 by week’s end, down from $22.45 midweek, while West Africa-to-China edged lower despite steady tonnage. Baltic Exchange spot rates dropped 6% to $20,198/day, with the BCI 5TC at $18,404, signaling a bearish turn.

Demand and Tonnage Trends

West Australia enquiries for mid-April and May dates are healthy, per April 2 reports, with East Australia coal cargoes—like KLC’s $22,750 time-charter—adding support. Pacific spot tonnage tightened midweek as prompt ships cleared out, though ballasting west grew for May. The Atlantic’s North saw transatlantic cargoes fail to soak up ships, tanking the C8 index, while South Brazil and West Africa held steady early on. Allied Shipbroking notes owners banking on fresh May cargoes to revive the market after a sluggish stretch.

Tariffs and Trade Impacts

Trump’s April 2 “Liberation Day” tariffs—34% on Chinese imports—could hit steel and cement, though Greek owner Stamatis Tsantanis sees core Capesize cargoes (iron ore, coal) as less exposed. Glencore’s 5-10M tonne coal cut at Colombia’s Cerrejon mine, slashing 2025 output to 11-16M tonnes, may trim longer-haul trades to Europe and Asia, per MB Shipbrokers. Replacement volumes from Australia or Indonesia—shorter runs—could dent tonne-miles, with Colombian freight to China ($34-$35/tonne) outpacing Newcastle ($13.50/tonne).

⏳ Panamax Market: Soybean Support, Tariff Shadows

Market Performance

Panamax bulkers, the mid-tier haulers, are at a turning point—Baltic spot rates hit $13,489/day by April 1, a 5% weekly rise and 43% monthly jump, surpassing six-month highs. The Atlantic shows a split—North softens with weak mineral demand and rising tonnage, while South America’s soybean exports prop up rates, per April 2 updates. Asia’s Pacific basin faltered—holiday slowdowns and fading NoPac/Australia cargoes met owner resistance, though coal from Indonesia and South American grains lent some lift. By April 4, momentum stalled as U.S. tariff uncertainty widened bid/offer gaps.

Fixtures and Sentiment

Clarksons notes strong Atlantic fronthaul demand—e.g., an 82,000-dwt fixed at $18,750 from North Spain to Singapore-Japan, now closer to $17,000s. In Asia, an 82,000-dwt scored $15,500 for a year-long charter from China. The Baltic reports fixtures like the 87,285-dwt Climate Justice at $18,250 via East Australia to Singapore-Japan, though activity muted post-holidays. Fundamentals seem balanced, but low coal shipments and U.S. grain declines temper optimism beyond the seasonal peak, per April 2 analyses.

Tariff and Macro Pressures

Trump’s 34% tariff on Chinese imports, announced April 2, seeps into sentiment—Braemar Research warns of trade war risks, though Greek owner John Coustas sees long-term shipping gains from rerouted flows. Low coal prices and Glencore’s Colombian cuts could soften demand, while USTR’s $1M-$1.5M fees on Chinese-built ships worry charterers, per April 1 reports. The market holds firm for now—soybeans buoy it—but macro headwinds loom large.

Bulker delivers coal to a terminal in Jiujiang, in China’s Jiangxi province

⏱️ Supramax/Ultramax Market: Quiet Waters, Mixed Signals

Regional Activity

Supramax and Ultramax, the versatile smaller bulkers, stayed subdued—U.S. Gulf wavered with a 61,000-dwt fixed at $16,000 to Japan, while South Atlantic gained traction, like a 64,000-dwt at $14,500 plus $450,000 bonus to SE Asia, per April 4. The Continent-Mediterranean saw slow fixing—e.g., a 58,000-dwt at $14,000 to East Med—while Asia weakened with tonnage oversupply and holiday lulls. Indian Ocean runs, like a 63,000-dwt at $12,000 to Bangladesh, stayed lackluster, though a 61,000-dwt to WC India hit $16,000, per April 2 reports.

Market Sentiment

Global holidays muted activity—sentiment’s mixed, with U.S. Gulf fragile and Asia’s NoPac/backhaul demand poor, per April 2 updates. Slight rate upticks in South Atlantic and Continent-Med offer glimmers, but oversupply in Asia drags overall mood. Trump’s tariffs on steel and cement—key Supramax/Ultramax cargoes—could hit U.S. imports (60M tonnes annually), per AXS data, though trade shifts might offset losses, per Braemar.

Trade and Tariff Impacts

Steel imports, down from 35M tonnes (2017) to 20M (2020) in past trade wars, face new 34% tariffs—cement from Vietnam (3.8M tonnes, 46% tariff) may pivot to Turkey (6.8M tonnes, 10% tariff), per April 3 analyses. USTR’s Chinese ship fees add pressure—Clarksons sees valuation gaps widening, impacting these mid-sized fleets. The sector’s quiet—some positives flicker—but tariffs cloud the horizon.

Self-unloading cement carrier

⏸️ Handysize Market: Flatline Across Basins

Market Stagnation

Handysize bulkers, the smallest dry cargo movers, saw minimal action—Continent-Med stayed flat, with a 35,000-dwt fixed at $7,250 to NC South America, per April 4. South Atlantic and U.S. Gulf held steady—e.g., a 38,000-dwt at $15,250 to Algeria—while Asia’s gradual tonnage rise met modest demand, like a 40,000-dwt at $16,000 to China. Sentiment’s unchanged—long tonnage lists pressure rates across basins, per April 2 reports.

Sanctions and Activity

The U.S. Treasury’s April 2 sanctions hit the Russia-flagged 37,200-dwt Zafar for moving Ukrainian grain to Yemen’s Houthis—linked to Russia’s Salmi Shipmanagement, it’s a rare dry bulk blacklist. Activity stayed low—holidays and weak cargo volumes kept rates stable but uninspired. The market’s in a holding pattern—no big shifts, just quiet consistency.

Tariff Considerations

Trump’s tariffs could ripple to Handysize—steel and cement flows may reroute, though core demand holds, per Greek owner insights. USTR’s Chinese ship fees loom, but impact’s unclear on this smaller tier. For now, it’s steady but subdued—no fireworks here.

" Zafar " (picture above) carried grain from the Crimea to Houthi-controlled Saleef port on at least two occasions last year

🌐 What’s Driving It: Tariffs, Sanctions, and Supply

U.S. Policy Shifts

Trump’s 34% tariffs on Chinese imports (April 2) and sanctions on Russia’s Zafar for Ukrainian grain (April 2) disrupt steel, cement, and coal trades—Braemar sees short-term pain, long-term gains. USTR’s $1M-$1.5M fees on Chinese-built ships widen valuation gaps—Clarksons predicts 7-10% discounts, per April 2. Greek owners like Harry Vafias eye tonne-mile boosts from trade rerouting, per April 3.

Commodity and Tonnage Dynamics

Glencore’s 5-10M tonne coal cut in Colombia shrinks long-haul demand—MB Shipbrokers note shorter Australia/Indonesia runs may follow, per April 1. Holiday lulls and tonnage oversupply in Asia/Pacific weigh on rates, though Pacific Capesize and Atlantic Panamax resist softening, per April 4. Low coal prices and cautious S&P activity—Allied counts 168 dry bulk sales in Q1, down from 237—signal restraint, per April 2.

🌐 Outlook: Cautious Currents

Capesize at $18,000-$20,000/day—Pacific dips, Atlantic weakens—May cargoes key. Panamax near $13,500/day—soybeans prop, tariffs loom—stability tested. Supramax/Ultramax steady—South Atlantic lifts, Asia drags—trade shifts ahead. Handysize flat—rates hold, no spark—quiet persists.

1 Year T/C Dry Bulk - April 2nd

💬 Your Take?

Panamax riding high, or Capesize set to bounce? Drop your thoughts—let’s unpack it! 🚢

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$WEST (-5,37%)

The dry bulk shipping market in late March 2025 shows a split picture. Capesize rates softened from recent highs as Pacific activity slowed, while Panamax keeps climbing, buoyed by grain and coal demand in both basins. Supramax and Handysize hold steady but lack fireworks—Asia’s quiet, and the Atlantic’s mixed. U.S. port fee threats on Chinese-built ships stir unease, a Russia-Ukraine ceasefire cuts insurance costs, and China’s soy shift could jolt routes. It’s a market with some muscle, some stumbles, and big changes brewing.

This update tracks Capesize, Panamax, Supramax, and Handysize moves, plus what’s driving them. From rate swings to global twists, here’s the latest—clear and unpacked.

⏬ Capesize Market: Easing Off the Gas

Capesize, the bulk giants, started strong but faded—BCI 5TC dropped from $22,311 to $20,503, a 2% overnight slip to $21,810/day by week’s end.

West Australia to China (C5) fell from $9.30 to $8.65/tonne—Rio Tinto fixed $9.30 for early April—hit by muted miner activity and heavy tonnage lists.

Brazil to China (C3) slid from high $25s to $24.71/tonne, despite a $25.90 fixture on Cape Pride—South Atlantic ballast lists shrank, offering some lift.

North Atlantic saw fronthaul flickers from West Africa, but trans-Atlantic cargoes stayed scarce—sentiment’s softening as tonnage piles up.

Congestion in West Africa props up the Atlantic—spot rates stabilized near $20,000/day—yet Pacific slowdowns drag the vibe down.

Australian iron ore shipments rose 3.3% week-on-week, but China’s high inventories and flat demand cap upside—new West African supply looms for 2026.

FFA contracts peg Q2 at $21,800-$23,000/day—Allied notes a reassessment as traders eye tariffs and quieter fundamentals ahead.

Clarksons flags trade uncertainty as the year’s driver—rates hold three-month highs, but the rally’s losing steam.

⏳ Panamax Market: Grain Fuels Gains

Panamax, the mid-size haulers, broke $13,108/day—up 5.7% weekly—riding a second ECSA grain wave and solid Pacific demand.

North Atlantic fronthaul hit $17,000/day—like Falkonera’s NC South America-to-Pakistan run—while ECSA late-April stems keep bids firm, if spread wide.

Pacific strength surprised—Australia and Indonesia coal runs, plus NoPac at $15,000/day on Maine Soleil, defied China’s high coal stocks and India’s dip.

South America to Singapore-Japan fetched $15,250 plus a $525,000 bonus on Yasa Pioneer—P5 rates jumped $1,800 week-on-week as tonnage tightened.

China’s U.S. soy imports soared 84% to 9.1M tonnes in Jan-Feb—Brazil’s harvest (70% done) gears up for a Q2 surge, boosting tonne-miles.

Short-period fixes ranged $14,500-$16,500—Alpha Vision scored $14,500 for 5-7 months—showing owners’ confidence in tight prompt lists.

MB Shipbrokers see Brazil’s port congestion lifting rates—Beijing’s U.S. tariffs might flip flows, keeping Panamax hot into mid-year.

The market shrugs off seasonal lulls—Atlantic and Pacific demand align for a rare double-barreled push.

⏱️ Supramax Market: Steady but Stalled

Supramax, the smaller bulkers, stayed flat—the 11TC average wobbled with no big moves—sentiment’s cautious amid political noise.

ECSA teetered on imbalance, while Continent-Mediterranean perked up with more enquiries—US Gulf rates stuck in the mid-teens for Ultramax fronthaul.

A 63,000-dwt fixed $18,000 from Recalada to Egypt—South Africa held firm with a $15,000 Lagos-to-China run on a 64,000-dwt.

Asia sagged—downward pressure grew with thin cargoes—an Ultramax nabbed $13,000s for a NoPac round, and a 64,000-dwt got $16,000 to Bangladesh.

Backhaul was tame—a 52,000-dwt scored $15,000 Jingtang-to-Med—but fresh enquiry’s lacking, and tonnage lists lengthen.

MEG-WC India stayed hushed—cargo volumes didn’t budge—period deals were rare, though a 57,000-dwt fixed a year at $13,000s in Hong Kong.

USEC and North Atlantic tightness split some Panamax cargoes to Supramax—still, it’s a wait-and-see market with no spark yet.

Rates hover, but Asia’s lull and Atlantic’s balance keep things grounded—demand needs a kick to shift gears.

⏸️ Handysize Market: Mixed but Holding

Handysize, the smallest carriers, showed a split bag—Continent-Mediterranean stayed steady with a solid cargo book—$14,000-$15,000 trips to Morocco/Algeria.

South Atlantic and US Gulf lagged—a 39,000-dwt got $14,750 Recalada-to-Salvador, but slow fundamentals kept gains in check.

Asia hummed along—a 38,000-dwt fixed $13,300 via Dampier to China—Southeast Asia’s balance of demand and ships propped up rates.

Period action was light—a 28,000-dwt nabbed $10,350 for 3-5 months in North China—but strong fixtures signal quiet resilience.

Russia-Ukraine ceasefire cuts Black Sea insurance costs—Ukraine’s 70M tonnes of grain exports roll on, unfazed by past risks.

Grain demand’s steady, not booming—China’s 35% import drop (corn, barley) dents upside, but local stability holds the line.

It’s a mixed run—Europe and Asia chug, Atlantic drags—Handysize keeps afloat without big waves.

🌐 What’s Driving It: Trade and Tensions

Iron ore’s $100/tonne stability masks oversupply—China’s flat steel output and West Africa’s 2026 boost cap volume pops.

Panamax rides soy and coal—China’s U.S. tariffs and Brazil’s harvest could stretch tonne-miles, though grain’s soft in spots.

U.S. port fees ($1.5M/call) on Chinese ships threaten chaos—Seaboard and Tropical warn of collapse, smaller operators like World Direct face ruin.

Russia-Ukraine truce eases Black Sea costs—inspections might slow Ukraine’s 110M-tonne trade—Russia ties it to sanctions relief.

China’s grain slump (down 35%) and feed drop (1.7%) hit demand—SDTR’s Gao sees no newbuild case amid oversupply.

Tariffs and fees loom large—Clarksons flags them as the year’s wild cards—rates might swing if trade reroutes.

1 Year T/C Dry Bulk - March 26th

🌐 Outlook: Push and Pull Ahead

Capesize could settle near $20,000/day—West Africa congestion helps, but Pacific tonnage weighs—May lists grow.

Panamax eyes $14,000+/day if Brazil’s soy surge holds—U.S. tariff shifts might juice it, though coal’s iffy.

Supramax and Handysize hover—Asia needs cargo, Atlantic a nudge—$15,000-$18,000/day’s in play if demand stirs.

Fees and trade wars could jolt costs—rates look solid now, but volatility’s on deck for Q3-Q4.

💬 What’s Your Call?

Backing Panamax’s rally, or watching Capesize steady? Share your take—let’s break it down! 🚢

$NMM

$SBLK (+1,11%)

$SB (+2,37%)

$PANL (-1,64%)

$GNK (+0,09%)

$HSHP (+3,23%)

$GOGL (+0,44%)

$2020 (+4,51%)

$9104 (+1,19%)

$KCC (+3,36%)

$WEST (-5,37%)

The dry bulk market in late March 2025 is a mixed bag. Capesize rates, after hitting four-month highs, eased off as activity slowed, while Panamax shows uneven signs—some strength, some slippage—amid trade uncertainties. Supramax and Handysize keep a steadier pace, with Asia lifting rates despite a quieter Atlantic. U.S. tariff threats on Chinese-built ships are stirring worries, and a bauxite boom from West Africa keeps Capesize busy. It’s a market with ups, downs, and plenty to watch as the year rolls on.

This update digs into Capesize, Panamax, Supramax, and Handysize trends, plus what’s behind them. From rate shifts to trade twists, here’s the latest—clear and straightforward.

⏬ Capesize Market: Highs Fade, Demand Holds

Capesize ships, the heavyweights of dry bulk, saw rates slip to $21,190 per day—a 6% drop from last week’s $23,992 peak—after a quieter start this week.

The Pacific had a wild ride: West Australia to China (C5) hit $11.58 per tonne earlier but fell to $9.35 as miners stepped back midweek.

Brazil to China (C3) steadied at $24.485 per tonne, up slightly, with end-April cargoes—like Vale’s $VALE (-2,22%)
$VALE3 (-2,44%) $24.25/tonne deal—showing grit despite thinning ship lists.

North Atlantic stayed calm, though a $43,000/day transatlantic run last week raised eyebrows.

Guinea’s bauxite exports, up 45% year-to-date, and Brazil’s iron ore keep demand humming—64 ships are queued off West Africa.

Futures hint at $21,250 for April, and John Fredriksen’s 10% grab of Star Bulk signals confidence. It’s a cooldown from the highs, but the pulse is still there.

⏳ Panamax Market: Push and Pull

Panamax, the mid-sized carriers, faced a week of ups and downs—rates hovered around $12,000-$12,500 per day for key routes, down slightly overall.

The Atlantic showed flickers of life: a $17,000/day trip from South America to Asia stood out, but North Atlantic demand stayed thin, dragging sentiment.

Asia held firmer with NoPac grain runs fetching $12,500-$15,500/day, though lengthening ship lists let charterers nudge rates lower.

U.S. tariff talks—$1M fees per port call—rattle U.S. grain trades, with coal cargoes facing a 34% value hit and ag products 10-15%.

South America’s grain steadied things, but bid-offer gaps widened as players pause.

A short-term $17,000 deal for 3-5 months in China popped up, yet the market feels cautious—waiting for clearer signals.

⏱️ Supramax Market: Asia Leads, Atlantic Lags

Supramax ships, the versatile smaller haulers, notched slight gains, especially in Asia.

Indonesia’s coal runs hit $17,000-$18,000/day—like a $17,000 trip to West India—while a $15,500/day South Africa-to-Far East run showed Indian Ocean spark.

The U.S. Gulf pushed up early with a $14,000/day Baltic-to-West Africa trip, but momentum fizzled—South Atlantic and Europe stayed balanced, not booming.

A $15,000/day NoPac round in China held steady, though demand softened northward.

Tariff fears have owners dodging U.S. calls or passing fees to charterers, squeezing margins.

A 7-9 month deal at $14,000/day worldwide kept period rates alive.

Asia’s the bright spot here, with the West playing catch-up.

⏸️ Handysize Market: Quietly Firm

Handysize, the smallest bulkers, kept a low-key but solid week.

Europe’s Continent and Mediterranean ticked up—a $14,000/day Skaw-to-Morocco run showed support—while Asia’s $10,500/day alumina trip from Singapore stayed healthy.

The U.S. Gulf slumped, with a $9,250/day grain run to the USA reflecting too many ships and not enough cargo.

South Atlantic balanced out, with a $16,000/day Recalada-to-U.S. East Coast deal for larger sizes.

Steel shipments and steady flows in Asia propped up rates, despite a slight ship pile-up.

It’s not flashy, but Handysize is holding its own—small gains, small worries.

🌐 What’s Moving Things: Trade and Ships

A few big pieces are in motion.

Guinea’s bauxite surge—31.4M tonnes in Q1—and Brazil’s iron ore keep Capesize humming, though coal’s down 28% year-on-year for these big ships.

U.S. tariffs on Chinese-built vessels (41% of Pangaea’s fleet $PANL (-1,64%) ) could slap $1M fees per call—coal feels it worst, alumina less so—pushing owners to rethink U.S. routes.

China’s shipyards shrug off the threat, flexing quality and adaptability, while U.S. revival plans lag.

New ship orders are scarce, but Guinea’s tonne-mile demand (1.32T miles) and Australia’s bauxite exports (42.6M tonnes) stretch what’s out there.

China’s consumer shift might cap commodity demand long-term—supply’s the key lever now.

1 Year T/C Dry Bulk - March 19th

🚨 Outlook: Steady with Swings

Capesize could ride bauxite and iron ore for six more weeks—$20,000+/day feels solid, but a slowdown might settle in.

Panamax has pockets of strength, especially if South America picks up, though tariffs cloud the U.S. side—rates might hover unless cargo flows firm.

Supramax leans on Asia’s buzz—$15,000-$18,000/day looks doable there—while Handysize chugs along quietly.

Tariff chaos and tight ship counts could spark volatility, but futures suggest a plateau soon.

It’s a market with some steam left, balanced by trade risks—eyes on April.

💬 What’s Your Take?

Seeing Capesize keep rolling, or Panamax finding its groove? Drop your thoughts—let’s chat! 🚢

$NMM

$SBLK (+1,11%)

$SB (+2,37%)

$PANL (-1,64%)

$GNK (+0,09%)

$HSHP (+3,23%)

$GOGL (+0,44%)

$2020 (+4,51%)

$9104 (+1,19%)

$KCC (+3,36%)

$WEST (-5,37%)

The dry bulk market in mid-March 2025 is heating up in spots. Capesize rates are nearing a four-month peak, thanks to steady iron ore shipments, while Panamax gets a boost from a busy Atlantic after a slow start to the year. Supramax shows a mixed picture—Asia perks up, but the Atlantic stays patchy—and new ship orders hit a 30-year low, hinting at fewer ships down the road. U.S. tariffs and trade tensions are shaking things up, especially for Panamax grain routes, though Brazil’s soy surge offers a lift. It’s a market with some bright patches and plenty of questions still hanging.

This update covers Capesize, Panamax, and Supramax trends, plus the big forces at play. From rate jumps to trade shifts, here’s what’s happening.

⏬ Capesize Market: Rates Rise, Momentum Builds

Capesize ships, the biggest in dry bulk, saw rates climb to $23,697 per day by week’s end—up 16% since Monday and a massive 300% from February’s $5,939 low. In the Pacific, miners kept things moving with iron ore from West Australia, pushing C5 rates (Australia to China) to $11.58 per tonne before easing to $10.665—weather issues in China and closed ports cut down available ships. In the Atlantic, Brazil to China (C3) rates reached $25 per tonne for mid-April, helped by fewer ships heading over and steady cargo demand. The North Atlantic was quieter, but a couple of standout deals—like a $43,000/day transatlantic run—caught attention. Futures markets point to second-quarter rates above $23,000/day, and a big stake sale in Golden Ocean added some excitement. It’s a strong run, though some wonder if it’ll last without help from smaller ships.

⏳ Panamax Market: Atlantic Sparks a Surge

Panamax ships, the mid-sized haulers, sprang to life midweek, with average rates leaping 28% since Monday to $11,700 per day—close to a five-month high. The Atlantic took the lead, with minerals and grains from South and North America tightening ship supply—deals like $15,500/day for a year-long Japan-based ship showed the upswing. In the Pacific, North Pacific grains and Australian cargoes gave support, though the U.S. to China route sits at $43.507 per tonne, well off last year’s $65 peak. Brazil’s route to China climbed to $33.214 per tonne, and a bumper soy crop (172M tonnes) could push rates up by May or June. U.S. tariffs are slowing U.S. soy exports—stocks are building—shifting focus to Brazil. It’s a lively turnaround, but trade policies might keep things bumpy.

⏱️ Supramax Market: Asia Shines, Atlantic Wavers

Supramax, the smaller bulk carriers, had a week of ups and downs. Asia stood out with better rates—like $18,000/day for a coal trip from Indonesia to India—thanks to solid demand and fewer idle ships. The Atlantic was less steady: the U.S. Gulf held flat at $17,000/day for a petcoke run to India, while South America stayed even with deals in the upper $12,000s plus bonuses. Europe’s Continent-Mediterranean area felt balanced, hitting $15,000/day for a Far East trip, but the Indian Ocean lagged at $10,500/day for a South Africa-to-China run. Tariffs are making folks hesitant in the U.S., though South Africa’s cargo rush soaked up ships.Asia’s got some zip, but the Atlantic’s still finding its rhythm.

🌐 What’s Driving It: Trade Tensions and Ship Supply

A few big things are steering the market. U.S. tariffs—20% on China, 25% on Canada/Mexico—are hitting U.S. soy exports, boosting Brazil’s role and changing shipping paths—more distance could help, but it’s tricky for Panamax rates. New ship orders dropped to zero in February, the lowest in 30 years, with only 10% of the fleet on order—new ships won’t arrive until 2027-28, keeping things snug for now. Scrapping picked up, with 1M dwt recycled this year, nudging out older vessels. China’s iron ore and coal demand seems shaky, and trade wars might cool things off, but Brazil’s soy and corn could pick up the slack. It’s a mix of tight spots and big what-ifs shaping the next steps.

1 Year T/C Dry Bulk - March 12th

🚨 Outlook: Hot Spots and Cool Risks

Capesize might keep climbing if iron ore demand and low ship counts stick—rates near $24,000/day look good, but smaller ships need to step up to keep it going. Panamax has space to grow with Brazil’s soy season coming, though tariffs could limit U.S. gains—$14,000/day by April isn’t out of reach. Supramax’s Asia boost is promising, but the Atlantic needs more cargo to get moving—rates could stay steady unless demand shifts. Fewer new ships and more scrapping might lift rates later, but trade uncertainty keeps some risks in play. It’s a market with hot streaks and a few wait-and-see moments ahead.

💬 What Do You Think?

Feeling good about Capesize gains, or waiting on Panamax to prove itself? Share your thoughts—let’s talk it out! 🚢

$NMM

$SBLK (+1,11%)

$SB (+2,37%)

$PANL (-1,64%)

$GNK (+0,09%)

$HSHP (+3,23%)

$GOGL (+0,44%)

$2020 (+4,51%)

$9104 (+1,19%)

$KCC (+3,36%)

The dry bulk market in early March 2025 presents a divided picture. Capesize rates surge to three-month highs, fueled by robust iron ore demand, while Panamax grapples with oversupply and a tariff-driven shift in China’s soy sourcing from the U.S. to Brazil. Supramax delivers a mixed performance amid subdued cargo flows, as newbuilding activity plummets and escalating U.S.-China trade tensions drag bulker stocks lower. Investors navigating this space face a blend of Capesize strength, sub-Cape struggles, and macroeconomic headwinds—volatility remains front and center.

This update explores Capesize, Panamax, and Supramax developments, alongside trade and investment factors. From rate spikes to tariff impacts, here’s the latest—opportunity meets risk in this shifting market.

⏬ Capesize Market: Surge Tempers Midweek

Capesize rates soared 33% this week, reaching $20,084/day on the Baltic Exchange—a 22% jump since Monday—driven by iron ore demand from Australia and Brazil, plus West African bauxite. West Australia saw steady enquiries for mid-late March, with C5 peaking at $10.50/tonne midweek before settling at $9.50/tonne; C3 (Brazil-China) climbed to $23/tonne for early April, narrowing the Pacific-Atlantic divide. Modern, fuel-efficient ships are assessed at $22,600/day, with March FFA contracts trading near $20,000/day, suggesting potential upside. South Atlantic and North Atlantic tonnage tightened, boosting the BCI 5TC by $3,660 week-on-week, despite a midweek dip to $15,711. Bad weather in North China thinned Far East spot tonnage, and a vanishing contango aligns spot rates with futures—yet sub-Cape weakness could stall the rally. Investors might see momentum here, though long-term risks tied to China’s stimulus linger.

⏳ Panamax Market: Oversupply and Tariffs Weigh

Panamax markets remained muted, bogged down by excess tonnage and sparse demand. In the Atlantic, rates slipped below $10,000/day as ECSA tonnage piled up, despite a slight uptick in NCSA grain activity—cancelled Indonesian cargoes further soured sentiment. Pacific rates eroded as grain voyages dwindled, with Japan-delivered 82,000-dwt trips falling from $12,500 to $10,500, despite minor relief from split Australian coal cargoes. China’s 10% tariff on U.S. soy is boosting Brazilian exports—Brazil-China routes hit $34.071/tonne, while U.S. Gulf-Qingdao dropped to $44.014/tonne—shifting tonne-miles southward. A 1-year period fix for an 82,000-dwt in China achieved $14,000, but broader softness persists without a seasonal lift. Stocks like Golden Ocean fell 4.8% amid trade war fears—Panamax faces choppy waters unless cargo flows rebound.

⏱️ Supramax Market: Mixed Signals Prevail

Supramax and Handysize markets kicked off quietly, with uneven activity across regions. The Atlantic saw flat Continent-Mediterranean rates and a softening US Gulf, where a 63,000-dwt petcoke run to India fixed at $17,000, while South America balanced out with a 61,000-dwt at upper $12,000s plus a $200,000s bonus. Asia’s Indonesian coal pricing uncertainty subdued Supramax, with a 63,000-dwt NoPac round at $12,500, though Indian Ocean demand pushed a 64,000-dwt to $15,500 plus $155,000 bonus. Handysize shone in Asia—a 37,000-dwt to Japan hit $11,000—contrasting US Gulf weakness at $8,500 for a 37,000-dwt East Coast run. Tightening Handysize availability offers a glimmer, but Supramax cargo scarcity limits gains—Brazil’s soy shift could nudge sub-Cape tonne-miles, yet momentum remains elusive. Investors might find selective stability here, tempered by broader caution.

🌐 Trade & Investment Context: Tariffs and Trends

Trade tensions are reshaping dry bulk dynamics. U.S. tariffs—20% on China, 25% on Canada/Mexico—met China’s 10-15% levy on U.S. farm goods, tanking stocks like Himalaya Shipping (-5.4%) and hitting sub-Cape grain hardest. Brazil’s soy exports, nearing 99.6M tonnes in 2025, gain as U.S.-China soy trade fades— milder than 2018’s 25% tariffs but still impactful. Newbuilding orders crashed 95% year-on-year to 130,000 dwt in January 2025, with a 10.5% orderbook and 14% higher 2025-26 deliveries pressuring rates. U.S. fees on Chinese ships and China’s NPC stimulus talks (ending March 11) loom—steel vs. consumer focus is unclear. Investors might weigh Capesize resilience against sub-Cape tariff risks and fleet growth concerns—macro events will steer the course.

🚨 Outlook: Uneven Paths Ahead

Capesize could climb further if China’s iron ore push and tight tonnage hold—FFAs and rising deal flow signal confidence, but sub-Cape drag may temper gains. Panamax faces a slog unless Brazilian soy offsets U.S. losses and tonnage eases—trade wars cloud prospects. Supramax offers pockets of steadiness, with Handysize a bright spot, though cargo scarcity caps upside. A newbuilding slowdown hints at future balance, yet 2025 bearishness looms with 3% fleet growth and flat shipments possible. Investors might lean into Capesize strength, brace for Panamax weakness, and watch China’s NPC—volatility’s here to stay.

1 Year T/C Dry Bulk - March 5th

💬 What’s Your Read?

Bullish on Capesize strength, or bracing for Panamax weakness? Share your take—let’s break it down! 🚢

$NMM

$SBLK (+1,11%)

$SB (+2,37%)

$PANL (-1,64%)

$GNK (+0,09%)

$HSHP (+3,23%)

$GOGL (+0,44%)

$2020 (+4,51%)

$9104 (+1,19%)

$KCC (+3,36%)

The dry bulk market in late February 2025 paints a varied picture. Capesize rates are rallying to near three-month highs, fueled by Australian iron ore and tightening tonnage, while Panamax rates face headwinds from China’s dwindling grain demand. Supramax holds steady with mixed regional activity, as broader economic shifts—like a U.S. recovery and China’s inventory drawdown—shape freight dynamics. Investors eyeing shipping stocks or commodity plays face a market of contrasts: bullish Capesize sentiment meets fragile fundamentals elsewhere.

This update unpacks the latest across Capesize, Panamax, and Supramax segments, weaving in global economic and demand trends. From rising spot rates to oversupply risks, here’s what’s driving the dry bulk space—and what it might mean for the months ahead. Volatility remains a constant; let’s dive in.

⏬ Capesize Market: Rates Climb, but Questions Linger

Capesize spot rates hit $15,074/day on Friday, up 83.5% week-on-week and the highest in nearly three months, per the Baltic Exchange. West Australia sees a flurry of enquiries for March 10 onward, with some operators eyeing end-March and April on index-linked terms. East Australia coal and Pacific cargoes are ticking up too, lifting mid-week optimism—C5 crossed $8/tonne, and C3 (Brazil-China) fixtures hit $19-$19.70/tonne. Clarksons notes Rio Tinto fixing multiple vessels in the Pacific, where tonnage lists are thinning, while Vale’s Atlantic interest for early April adds momentum. Yet, BRS Shipbrokers flags sustainability concerns: prompt C3 and C9 (Europe-China via Brazil) positions struggle with oversupply, despite forward dates firming to mid-$19,000s. China’s iron ore stocks dipped 0.3% to 153.4M tonnes, hinting at inventory reliance over new shipments, which could cap demand. Ballasters are easing (SE Africa at 130 vessels, down 20), but levels stay above early-year lows—rates may rise further if March trends tighten, or soften if physical demand lags paper gains.

Capesize - USD/Day , USD/Tons - February 26th

⏳ Panamax Market: China’s Grain Slump Weighs Heavy

Panamax markets are sluggish, with sentiment mixed across basins. The Atlantic’s North is quiet, and ECSA fronthaul activity has retreated, piling up tonnage and softening rates. In the Pacific, coal and grain volumes ease as Capesizes snatch demand, pushing Australia-China rates down since mid-2024—Drewry sees no near-term recovery to last year’s $19,802/day highs (January 2025 averaged $6,762/day). China’s wheat imports are fading, with four 60,000-tonne shipments rejected this month and no March orders, reflecting a record 140M-tonne domestic crop. Brazil’s corn dominance and U.S. export declines (China’s wheat/corn imports down 37% y-o-y) shrink tonne-miles—Panamax Baltic rates are off 40% y-o-y. SE Africa ballasters dropped to 150 (down 30), and Continent-Far East rates edged to $30/tonne, but without fresh cargo inflows, further corrections loom. Seasonal March strength is possible, yet fundamentals remain shaky—investors might brace for prolonged softness.

Panamax - USD/day , USD/tons - February 26th

⏱️ Supramax Market: Steady with Regional Twists

Supramax activity is a mixed bag. The US Gulf lacks fresh demand, holding rates flat as owners resist cuts, while the South Atlantic balances upward pressure and stability. Asia’s market stays firm—Indo-ECI rates hit $9/tonne—but may have peaked, with SE Asia ballasters dipping below 98. The Med-Continent gains from new enquiries, unlike the flat Indian Ocean and struggling US Gulf. Pacific sentiment holds strong, and period charters remain active, signaling confidence. Tonne-day growth outpaces other segments, with congestion easing (down 10 vessels to ~250). NOPAC Far East Handysize rates rose to $30/tonne (up 15% m-o-m), though Handy NOPAC ballasters fell below 27. The week ended quietly, but positive vibes persist—Supramax could offer stability amid larger vessel swings, though regional disparities warrant close watch.

Supramax - USD/day , USD/tons - February 26th

🌐 Economic Context: U.S. Rebound, China’s Shift

Global economic signals are shifting. Commodore Research highlights a U.S. turnaround: retail spending beat inflation for four months straight (unlike 17 of the prior 23), and industrial production grew 2% y-o-y—the strongest since 2018 sans COVID years. This could lift dry bulk demand if sustained. In China, iron ore port stocks fell to 153.4M tonnes despite higher throughput, suggesting reliance on reserves over new shipments—a bearish tilt for Capesize rates. Grain self-sufficiency cuts import needs, pressuring Panamax tonne-miles. The U.S. as a growth engine contrasts with China’s mixed outlook—investors might weigh these against freight trends.

🚨 Outlook: Diverging Paths

Capesize rates could climb if Pacific tightness and Atlantic forward fixtures hold—FFAs peg March at $19,000/day and Q2-Q4 at $21,200-$22,900/day—but oversupply risks linger for prompt cargoes. Panamax faces a tougher road, with China’s grain pivot and tonnage buildup threatening further declines unless seasonal demand kicks in. Supramax offers a steadier footing, buoyed by tonne-day growth and Asian strength, though US Gulf weakness tempers gains. U.S. economic tailwinds clash with China’s inventory drawdown—bullish Capesize sentiment may not spread evenly. Congestion’s easing (Capesize below 80, Panamax below 140) hints at capacity surplus, yet recovery signs suggest a bottoming out. Investors might find selective opportunities amid the noise.

1 Year T/C Dry Bulk

1 Year T/C Dry Bulk

💬 Your Take?

What’s your read on dry bulk’s next move? Bullish on Capesize rates, or worried about Panamax softness? Share your thoughts—let’s dig into this together! 🚢

$NMM

$SBLK (+1,11%)

$SB (+2,37%)

$PANL (-1,64%)

$GNK (+0,09%)

$HSHP (+3,23%)

$GOGL (+0,44%)

$2020 (+4,51%)

$9104 (+1,19%)

$KCC (+3,36%)

The dry bulk market is trying to shake off a rough start to 2025. After sinking to multi-year lows, Capesize rates are finally inching up, helped by recovering iron ore shipments and a firmer tone in freight futures.

However, challenges remain. China’s steel demand is still weak, limiting iron ore imports. Congestion is at multi-year lows, keeping too many ships available and capping rate increases. Adding to the uncertainty, Arctic Securities has cut its Capesize rate forecasts for 2025, warning that a full recovery may take longer than expected.

Meanwhile, dry bulk stocks are seeing mixed performances. Jefferies downgraded Star Bulk price target but kept it as a Buy, and Safe Bulkers maintained its Buy rating after a solid earnings report.

This early rebound is promising, but will it last?

⏬ Capesize Market: A Fragile Recovery

Capesize rates have edged higher, but remain under pressure. The Baltic Exchange’s Capesize index is at $6,009 per day, still hovering near breakeven. Forward freight agreements (FFAs) for Q2 suggest optimism, trading around $17,500 per day.

The recovery is being driven by:

• Australian ports reopening after Cyclone Zelia. Rio Tinto and Vale are back securing fixtures, but lost shipments will take time to recover.
• Brazilian iron ore exports holding steady, down just 0.4% year-on-year in January.
• A surge in Guinea’s bauxite exports, up 50%, creating additional cargo demand for larger vessels.

Despite these positives, risks remain. Congestion is at its lowest level in years, meaning plenty of vessels are still available. China’s weak steel demand is also slowing iron ore imports. If demand doesn’t pick up soon, this rebound could quickly stall.

Capesize - USD/Day , USD/Tons - February 19th

⏳ Panamax Market: Stable, but Waiting on China

The Panamax market is showing resilience, with coal and grain shipments providing steady employment. The Baltic Panamax index stands at $9,932 per day, benefiting from rising grain flows into China.

South American grain exports are picking up, and coal shipments from South Africa are also recovering. However, much depends on whether Chinese demand strengthens post-Lunar New Year. If it does, rates could continue climbing. If not, the market may struggle to gain further momentum.

Panamax - USD/day , USD/tons - February 19th

📈 Supramax Market: Asia Tightens, Rates Firming

The Supramax market continues to strengthen, with the Baltic Supramax Index at 839 points. Tonnage availability is tightening in Asia, and demand for coal and bauxite is helping push rates higher. Charterers are also locking in more period charters, a sign that some expect a stronger market ahead.

Supramax - USD/day , USD/tons - February 19th

🌪️ Cyclone Zelia’s Impact on Iron Ore Shipments

Australian iron ore exports are still feeling the effects of Cyclone Zelia. Shipments were down 10% in early 2025, with Port Hedland alone losing three full days of operations. That caused a 55% year-on-year drop in exports for the affected week.

Brazilian exports have also been softer, down 5% year-on-year due to sluggish demand. China’s high port inventories are delaying new purchases, further slowing the recovery. If steel production doesn’t pick up soon, iron ore imports could remain weak, putting more pressure on Capesize rates.

📉 Rate Forecasts Cut: Arctic Securities Lowers 2025 Outlook

Arctic Securities has lowered its Capesize rate forecast for 2025 by 24%, now expecting $21,900 per day. Panamax and Supramax projections were also cut by 30-40%.

The main concerns behind the downgrade:

• Too many available vessels, with congestion at low levels.
• Weak iron ore and coal demand, especially from China.

Arctic still sees long-term upside but warns that rates may remain under pressure in the near term.

1 Year T/C Dry Bulk

1 Year T/C Dry Bulk

📊 Dry Bulk Stocks: Mixed Earnings and Downgrades

Dry bulk stocks have been reacting to market conditions, with some outperforming expectations while others struggle.

• Safe Bulkers maintained its Buy rating after posting $71.5 million in revenue, slightly above estimates. However, EPS came in at $0.15, just below the forecasted $0.16. Target price remains at $6.
• Star Bulk saw Jefferies cut its target price to $21 while keeping it as a Buy. The company reported $308.9 million in revenue, beating estimates, but its EPS of $0.34 missed the expected $0.43.
• Genco Shipping reported $99.2 million in revenue, with an EPS of $0.29, below the forecasted $0.42.
• Golden Ocean also had its price target lowered to $12.30, though analysts still see long-term upside in the Capesize segment.

Meanwhile, Western Bulk saw its target price slashed from NOK 25.2 to NOK 14 due to ongoing market uncertainty.

🚨 Outlook: Can the Recovery Hold?

The market has seen some positive momentum, but risks remain. Capesize rates are back above breakeven, but with congestion low and demand uncertain, the rally could be short-lived.

A lot hinges on China. If steel production picks up post-Lunar New Year, iron ore imports will rise, supporting Capesize and Panamax rates. If not, the market could struggle in the coming months.

For now, FFAs suggest a stronger Q2, but real cargo demand will need to materialize for the market to sustain any real gains.

💬 Let’s Connect!

What’s your take on the dry bulk market? Will Capesize rates hold, or is another slump ahead? Let’s discuss! 🚢

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Troubled Waters: Dry Bulk Market Challenges

The dry bulk market has been battling persistent turbulence in recent years, facing headwinds from a global economic slowdown, particularly in China. As the world’s largest importer of iron ore—accounting for 70% of global imports—and a major consumer of coal at 27.5% of global imports, China’s economic deceleration has had a profound impact on shipping demand. However, supply-side dynamics have compounded the situation. The market is grappling with a significant oversupply of vessels, which, despite steady demand, has driven freight rates downward and intensified competition across the industry.

Geopolitical conflicts have added another layer of complexity. The ongoing war between Russia and Ukraine has disrupted global grain shipments, further straining an already fragile trade environment. These pressures are clearly reflected in the Baltic Dry Index (BDI), which on February 18th stood at just 792 points—down 49.9% year-over-year and 20.6% since the start of 2025.

SBLK: A Strong Contender in a Challenging Market

Despite the industry-wide downturn, Star Bulk Carriers ($SBLK (+1,11%)) continues to set itself apart with a combination of cost efficiency, fleet scale, and operational excellence. The company operates one of the lowest-cost fleets in the world, with a daily operating expense (OPEX) of just $5,056 per vessel per day in Q4 2024. This efficiency, paired with its 155-vessel fleet spanning various classes with an average age of 11.8 years, provides a solid foundation for long-term resilience.

SBLK Fleet composition including 5 newbuilding vessels and

Sustainability is also a priority for SBLK, and the company has been proactive in meeting environmental regulations. By equipping its vessels with cutting-edge emissions technology, SBLK has earned a “B” score in environmental and water management from the 2024 Carbon Disclosure Project (CDP). This commitment to responsible shipping is further reinforced by an ESG risk rating of 18.4, making SBLK the top-ranked U.S.-listed dry bulk company in ESG performance.

Delivering Value to Investors

Through strategic financial management, SBLK has consistently prioritized shareholder value. Since 2021, the company has generated $2.6 billion in returns for investors. This commitment is evident in the recently announced $100 million share buyback program, which saw 900,000 shares repurchased in December and January at an average price of $15.08, largely financed by free cash flow and vessel sales.

Dividends remain a key pillar of SBLK’s strategy, with 60% of quarterly free cash flow allocated to payouts. The company also maintains a strong financial position, with $440 million in cash on hand post-Q4 2024. Over the past four years, net debt per vessel has been reduced by 54%, from $11.9 million to $5.4 million, while 13 ships are now fully debt-free, collectively valued at $250 million.

SBLK Shareholder commitment since 2021

Financial Performance: Growth Despite Market Conditions

Even amid the broader market downturn, SBLK has continued to deliver strong financial results. In Q4 2024, the company reported total revenues of $308.9 million, marking a 17.25% year-over-year increase compared to Q4 2023. Earnings before interest, taxes, depreciation, and amortization (EBITDA) also rose by 14% YoY, reaching $106.2 million, up from $93.1 million in the same quarter the previous year.

A key driver of this growth has been the 2024 acquisition of Eagle Bulk, a strategic move that has strengthened SBLK’s market position and operational efficiencies.

Q4 24 SBLK Earnings + YOY + 2023 vs 2024

Eagle Bulk Integration: Unlocking Synergies

The integration of Eagle Bulk has been progressing smoothly, unlocking significant cost savings and operational efficiencies. By bringing crewing operations in-house and phasing out third-party management, SBLK has substantially reduced operating expenses. Further efficiencies have been achieved through the centralization of procurement for spare parts, bunkers, lubricants, and other vessel necessities.

Technical oversight of the former Eagle Bulk fleet has also been fully integrated into SBLK’s Athens headquarters, ensuring uniform maintenance protocols and enhanced marine safety standards. Additionally, the company’s scale and strong relationships with shipyards and service providers have led to significant reductions in dry dock costs for the Eagle fleet.

SBLK has also benefited from lower interest expenses following the Q2 2024 refinancing of Eagle Bulk’s debt, further strengthening its balance sheet. To date, synergies from the Eagle Bulk integration have resulted in more than $22 million in cost savings, with additional opportunities expected in 2025, particularly in OPEX and dry dock expenses.

Conclusion: Positioned for Long-Term Success

The dry bulk shipping industry continues to face turbulent waters, but SBLK has proven its ability to navigate through uncertainty with operational efficiency, financial discipline, and strategic growth initiatives. While market challenges persist, the company’s low-cost structure, commitment to sustainability, and shareholder-focused approach set it apart from its peers.

With the successful integration of Eagle Bulk, a disciplined financial strategy, and continued efforts to optimize costs, SBLK is not only weathering the current market downturn but also positioning itself for long-term success. As the industry eventually rebounds, SBLK stands ready to emerge stronger, leaner, and more resilient than ever before.

I rate for myself SBLK as a "BUY" on the long term with a 1Y price target of 23$.

The analysis provided in this post reflects my personal views and opinions on Star Bulk Carriers (SBLK) and the broader dry bulk market. I currently hold a position in SBLK, which may create a potential bias in my perspective. This analysis is for informational purposes only and should not be considered financial advice. Investors should conduct their own research and consult with a professional before making any investment decisions. I am not responsible for any financial losses or decisions made based on the information presented.