MID-SHIP Report: Dry Bulk Freight Market – Jan 23, 2025

January 23, 2025

The Cape-size market is quiet ahead of the Lunar New Year holiday next week. At present, while China imports record iron ore in the month of December, the market is well-supplied, and demand is declining. Cape rates languish at low levels not seen for some time, with vessel owners struggling to cover Opex in the Pacific.

Expectations for recovery in the Panamax market are diminished at present, as the Panamax Time Charter Average falls below the $8,000 support level and is currently trading at $7,500 per day. Since mid-December, the Panamax Market saw a gradual increase from $8,750 to $9,500 per day in the first week of January. However, it has since declined, with no clear bottom in sight.

The freight market in East Coast South America continued to face pressure this week, with sentiment for late January and early February remaining weak. Vessel availability for these dates has increased significantly, while fresh demand has been limited, leading to further rate declines.

The current market in the Indian Ocean region remains under significant pressure due to the limited influx of fresh cargo inquiries and an ever-growing spot tonnage list in India. This oversupply of available tonnages is significantly outpacing demand, placing sustained downward pressure on rates. This imbalance has managed to keep fixtures in the region at relatively low levels.

Regionally, in the South Pacific, time charter levels for both handies and ultras have unfortunately again continued their downward trend over the last two weeks.

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