MID-SHIP Report: Dry Bulk Freight Market – Jun 7, 2024

June 7, 2024

Sentiment in the cape size market is positive, reflecting a tight new vessel order book, expectations that Chinese ore imports will continue in the face of declining steel production, as Japan, Korea, and Taiwan are increasing steel production as their economics continue to improve. Long-haul West African sources continue to support firm front haul rates.

The Panamax market remains quiet with levels softening as we enter the summer months. Over the last two weeks the Time Charter Average has lost another $1,000 or close to 10% of its value, approaching now the $15,000 per day support level, and is now at 20% off the January lows, with several  players attending Posidonia in Athen this week, we expect activity to further slow down at least for the remaining of the week.

The Supramax index continues to slide this week, heading towards April lows, which dropped to 1258 points on Wednesday. Although paper shows a bullish outlook on the market sector from June through Q4 with a moderate rate increase of 3-7%, the market still appears to lack momentum. Many market players are attending the shipping event in Posidonia, so the segment will likely see a muted week.

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