MID-SHIP Fertilizer – May 6, 2025
May 6, 2025
Market Overview:
The overhang of holidays (May Day, Golden Week in Japan, April 29th/May 5th, and the UK Bank Holiday today) has kept a cap on market activities and the spot market. This lag was reflected in trading within a very narrow range last week and today to start the new trading session.
As we start the week, many are returning from long weekend holidays. The market opened steady to flat with mixed sentiment across both basins.
OPEC+ announces a hike in output, which continues to pressure the price of oil amid macroeconomic concerns.
The Cape market showed signs of life, particularly within the Pacific rim. Panamax enjoys steady demand from grain trades, both front haul and transatlantic. Meanwhile, other segments lacked luster and traded sideways to down slightly. There are too many ships… generally speaking.
On May 1, 2025, the Mediterranean SOx Emissions Control Area (ECA) was officially implemented. This regulation mandates that ships operating within the designated area must utilize fuel with a sulphur content not exceeding 0.1%. Alternatively, vessels may employ exhaust gas cleaning systems to achieve an equivalent SOx emission level, ensuring compliance with the stringent environmental standards set forth by the International Maritime Organization (IMO) under MARPOL Annex VI, Regulation 14.
The S&P 500 ultimately ended the tumultuous month of April about 0.8% lower, and the NASDAQ closed out 0.85% higher. The Dow was down about 3.2% in April.
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