Dry bulk spot rates are stabilizing in a profitable zone. While rates are nowhere near the spectacularly high levels of this time last year, earnings are still healthy. Capes, the largest of all bulker types, closed October 10 at $19,418 per day on the Baltic Exchange, up from the $16,924 seen a week ago. Although that is a 15% gain, rates are down from the October 5 level of $21,175, a two-month high. However, at the same time last year, the rates were at the $80,000 per day mark. Capesizes averaged $13,695 in the third quarter.

The Baltic Exchange said that the Atlantic market remained the more optimistic region, while the Pacific saw only a couple of major charterers looking for tonnage. Meanwhile, backhaul has been “an interesting route to watch” as several coal cargoes from Australia to Europe have pushed the C16 index up to healthy levels, it said. Ship brokerage Fearnleys said that the big ships were enjoying “better times on limited prompt supply and somewhat healthier demand”. It highlighted how the Atlantic keeps standing out as the hotspot with miners, steel mills, utilities, traders, and operators absorbing most of the early tonnage, despite “close to negligible volumes”.

For panamaxes, which rose 7% in the week to $20,048 per day on the Baltic Exchange, it was “a tale of two halves” as the Atlantic “thrived” while the Pacific “floundered,” according to ship brokerage Braemar. “The Atlantic was predominantly driven by the grain and mineral markets whilst the transatlantic route provided supplementary support,” it said in a weekly note. “Conversely the Pacific struggled to really get going. Rates remain softer right across the basin with the only notable support coming from the North Pacific and Australia to Japan.” This time last year, panamaxes were enjoying rates that were heading to the $35,000 per day range. The vessel class averaged $17,172 per day in the third quarter.

Supramaxes have gained 3% in the week to close at $18,850 per day on the Baltic Exchange. Rates were close to $40,000 at the same time last year. The third-quarter average reached $19,727 per day, the most lucrative of all bulker sizes. Fearnleys said the Atlantic market was improving, while the Pacific was easing off considering the Golden week holidays in Asian countries last week. The Mediterranean market however showed “good resistance” mainly due to grain exports increasing from Ukraine and Russia, at a time when the tonnage list is short, thus giving “owners the opportunity to obtain better levels,” it said in a weekly note. East Coast South America and the US Gulf were also seeing “good activity levels,” helping rates to rise. 

In the handysize segment, Braemar said the recent push had continued, with owners willing to fix vessels for short periods in the $17,000s range for small handys and $1,000-$2,000 more for the larger handys, as tonnage tightened “significantly” especially in Europe. The segment closed at $18,607 per day on the Baltic Exchange, up 2.2% from October 3. As with the other sizes, rates were in the $35,000 bracket at the same time last year. The average in the third quarter was $18,708 per day.