Weekly Freight Recap: 11/07/24

PANAMAX

Atlantic: The Panamax market in the Atlantic region demonstrated solid performance this week, driven by increased activity from East Coast South America (ECSA), which continued to absorb global tonnage. This led to tighter tonnage availability in the Continent and West Mediterranean, resulting in improved rate levels for both trans-Atlantic and front haul routes. Several deals for the late July to early August window in ECSA added momentum, with rates steadily improving. In the Northern Atlantic, the market saw minimal trans-Atlantic activity, characterized by a flat market in the South due to subdued demand. Limited trade and inactive regions like North Coast South America (NCSA) and the US East Coast (USEC), combined with an oversupply of tonnage, allowed charters to maintain low bids, contributing to a weak overall market outlook.

Pacific: In the Pacific, the Panamax market experienced mixed outcomes. The Indonesia market saw minor gains, while the North Pacific (NoPac) region continued to underwhelm with low activity levels. However, there was a noticeable improvement in activity from Australia, with several deals concluded, providing some support to the market. Despite localized gains, the broader Pacific market remained weak due to insufficient demand, leading to drifting rates. Initial hopes of stabilization from South American activity did not materialize, leaving sentiment largely negative. The imbalance allowed charters to maintain low bids, pressuring owners to lower their rate expectations.

SUPRAMAX

Atlantic: The Supramax market in the Atlantic showed mixed signals. The US Gulf led the positive trend with significant rate improvements due to limited available tonnage and increasing levels of enquiry. The Mediterranean also saw more activity, contributing to regional positivity. Conversely, the South Atlantic struggled with a lack of fresh enquiry, leading to further softening of rates. The overall market sentiment remained subdued, with minimal exchanges and fixture reports highlighting thin cargo volumes in both ECSA and the wider Atlantic. The market outlook was cautious, with owners under pressure to lower their rate expectations to secure fixtures.

Pacific: In the Pacific, the Supramax market continued its slow decline. The Indian Ocean, affected by the monsoon season, saw very low cargo volumes, giving charters the upper hand to maintain low bids. Similar patterns were observed in Southeast Asia, where an oversupply of tonnage and low demand further weakened the market. Rates drifted lower throughout the week, reflecting the ongoing imbalance and lack of substantial support for owners. Overall sentiment in the Pacific remained negative, with little hope for immediate improvement given the current market dynamics.

HANDYSIZE

Atlantic: The Handysize sector experienced continued negativity, with the Baltic Handysize Index (BHSI) contracting further. Activity was limited across the Continent and Mediterranean, with minimal fresh enquiry maintaining a subdued market sentiment. In the US Gulf, the cargo-to-tonnage imbalance provided some steadiness, with expectations of further rate improvements in the near term. The South Atlantic saw a slight improvement in fresh enquiry for end-of-July dates, leading to a reduction in open tonnage and a slightly more positive outlook for the region.

Pacific: The Handysize market in the Pacific remained steady, with balanced levels in Southeast Asia and Australia. However, activity in North China and Japan was muted, contributing to an overall lackluster market sentiment. There was an underlying feeling of potential positivity in the near future, but concrete improvements were yet to be seen. Rates held steady amidst a balanced supply-demand dynamic, with some regional variations but no significant shifts in overall market direction.