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Weekly Market Report & Predictions: Handy and Ultramax Sectors 18th July 2025

Iakovos (Jack) Archontakis

Senior Maritime Strategy Consultant & Chartering Executive

& Commercial Director

TMC SHIPPING

Handysize & Ultramax Sectors

Navigating the Currents of the Shipping Market

As the maritime winds continue to shift across the global shipping routes, the Handysize and Ultramax sectors are grappling with an intricate dance of supply and demand. This report delves into the nuances of the current market landscape, exploring regional movements, key trends, and potential developments as we set sail into the coming week. Join us as we chart the course of these vital sectors, shedding light on what’s to come.

Handysize Market Overview:

US Gulf / US East Coast (USG/USEC)

The Handysize sector in the US Gulf and East Coast remained anchored this week, with an oversupply of capacity weighing on rates. As the majority of July cargoes have already been covered, the spotlight now falls on August's shipments. The anticipation of steady rates in the coming week suggests a calm before the storm, where traders will look for fresh opportunities to set their sails.

East Coast South America (ECSA)

The market in ECSA was split in two. While smaller vessels drifted in quiet waters, the larger units benefitted from the robust support of their Supramax counterparts. This dual current points to an optimistic outlook, where demand could sustain the momentum in the coming days, keeping the market afloat.

Northern Europe (Continent/NWE)

The North European market sailed forward without any dramatic shifts. A number of owners, seeking better opportunities, opted to ballast their vessels towards the US Gulf. With a tightening tonnage list, it’s expected that the market will catch a favorable wind in the near future, bringing a slight uptick in rates.

Mediterranean

The Mediterranean region saw an uptick in demand, though fixture volumes remained relatively stable. With tonnage levels steady, the market is expected to continue its current course into the next week, holding steady like a ship anchored in a safe harbor.

Middle East Gulf / India (MEG/India)

In the Middle East Gulf and India, the market maintained its momentum, with stable demand coupled with decreasing capacity. As this trend holds steady, the region is forecast to continue its course, offering a reliable trading route for those navigating these waters.

Southeast Asia / Far East (SE Asia/FE)

A tale of two seas in Southeast Asia and the Far East, where tonnage in the northern areas tightened while activity surged in the south. The positive energy from this increased activity bodes well for the week ahead, setting the stage for a promising market outlook.

Ultramax Market Overview:

US Gulf / US East Coast (USG/USEC)

The Ultramax market in the US Gulf and East Coast charted a new course upward this week. All destinations saw rising rates, fueled by a healthy cargo flow. With expectations of continued strong demand, the outlook for the next week is full of potential, as the market sails forward with renewed momentum.

East Coast South America (ECSA)

After a strong start, the ECSA market briefly caught its breath midweek before fresh cargoes surged in to propel the market forward. The optimism on the horizon suggests that the upward trend will persist, with a steady flow of cargo pushing the market into the next week with confidence.

Northern Europe (Continent/NWE)

The Ultramax sector in Northern Europe was supported by a strong push from the US Gulf and North Brazil. With several vessels ballast-bound for the other side of the ocean, the remaining ships saw an increase in their rate expectations. As tonnage supply diminishes, the forecast looks bright, especially as we approach the end of July.

Mediterranean

The Mediterranean market followed the general bullish sentiment from the Atlantic, with noticeable improvements in the region. A shortage of tonnage, both in the West and East Med, has heightened the sense of anticipation. However, for further market developments, particularly in the Eastern Med, more cargoes are needed to fully sail into positive territory.

South Africa

South Africa’s market surged this week as tonnage shortages lifted rates. With vessels from India finding opportunities in the region, the supply-and-demand balance has kept the market in a steady, upward trajectory. The positive trend is set to continue into the next week, steering the region in a favorable direction.

Middle East Gulf / India (MEG/India)

The market in the Middle East Gulf and India remains on an upward course, buoyed by the shortage of vessels in South Africa. As the South African market continues to attract more vessels, the firm stance in the MEG/India market looks to endure through the next week, offering a steady hand to those navigating these waters.

Southeast Asia / Far East (SE Asia/FE)

While Indonesian coal cargoes boosted the southern market, the northern region faced softer conditions with a quiet NOPAC market. However, a sense of cautious optimism remains, with many hoping for a recovery in the upcoming week.

Setting Sails Toward the Horizon

As we navigate the intricate waters of the Handysize and Ultramax sectors, one thing becomes clear: the seas are constantly shifting, yet opportunities abound for those with the right course. With stable demand in some regions and a tightening supply in others, the coming weeks promise to be both challenging and full of potential. Whether you’re sailing through the US Gulf, charting a course for South Africa, or riding the waves in Southeast Asia, the winds are favorable for those who remain agile and prepared for what’s next.

Disclaimer

This report and the information contained herein are for general information only and does not constitute an investment advice