Weekly Freight Recap: 13/06/24

Jun 13, 2024
PANAMAX

Atlantic: The Panamax market in the Atlantic experienced notable optimism this week, especially in the North Atlantic, where tight tonnage availability drove expectations of rising rates. Significant demand for grain and mineral trips from the North Coast of South America and the US Gulf contributed to the bullish sentiment. Meanwhile, the South Atlantic market remained stable yet firm, supported by ample cargo volumes. This steadiness will likely persist, buoyed by consistent demand and limited vessel availability, suggesting a potential rate increase soon.

Pacific: The Panamax market in the Pacific, however, remained quiet and subdued. Limited activity was observed, with a weaker overall market tone, partly due to holidays in parts of Asia slowing down the start of the week. Despite some stronger bids for grain transatlantic round trips, the sentiment remained bearish with minimal overall market activity. Charterers held off placing bids, leading to a standoff with owners and further stifling activity. However, a few period fixtures indicated a cautious optimism for a market rebound soon, as participants anticipate increased demand and potentially higher rates.

SUPRAMAX

Atlantic: The Supramax market in the Atlantic showed a marked improvement, driven by stronger numbers from the US Gulf, where rates increased significantly compared to the previous week. Fresh requirements and better cargo volumes, especially from the US East Coast and US Gulf, pushed rates up by around USD 3,000 from last week's fixtures. Additionally, the scrap trade from the Baltic/Continent paid a premium, with owners holding back to negotiate better rates. In the South Atlantic, sentiment remained positive, although fresh fixtures were limited. Overall, the Atlantic Supramax market is gaining strength, supported by increased demand and improved cargo volumes.

Pacific: In the Pacific, the Supramax market saw a slight uptick in activity, indicating that the market might have reached a bottom. A good balance of cargo and tonnage supply led to stable rates. Supramax vessels delivering to North China for coal round voyages and Ultramax vessels from Indonesia to China saw consistent fixtures at steady rates. While the market remained somewhat positional, there was cautious optimism as brokers reported more activity and stable demand, suggesting a potential stabilization of rates soon.

HANDYSIZE

Atlantic: The Handysize market in the Atlantic experienced a slight shift in sentiment, with brokers noting a potential change in fortune for owners in the Mediterranean and Continent regions. Increased cargo visibility contributed to this optimism, though significant gains were yet to be seen. The South Atlantic remained challenging, with negative sentiment due to prompt tonnage and a lack of fresh enquiry. However, the lack of prompt tonnage in the US Gulf allowed owners to achieve small gains, hinting at a potential recovery if demand continues to rise.

Pacific: In the Pacific, the Handysize market continued to face pressure, with negativity prevailing due to a lack of fresh enquiries from key regions such as Australia, Indonesia, and China. This persistent lack of demand further softened the market, causing rates to remain under pressure. Despite ongoing challenges, there were signs that owners were beginning to hold back, hoping for a turnaround as the market seeks a balance between supply and demand.

Weekly Recaps

Commodities

Agri- Commodities:
19-23/5/25 Agri

May 26, 2025

Grain markets exhibited volatility throughout Week 21, with wheat prices leading a mid-week rally before easing slightly into the weekend. Early in the week, MATIF milling wheat weakened in response to Saudi Arabia’s tender, which confirmed continued preference for competitively priced Black Sea wheat. Meanwhile, CBOT futures found strength, buoyed by a broader risk-on sentiment in financial markets after a brief dip following Moody’s downgrade of the U.S. credit rating. U.S. corn inspections came in strong, and planting progress remained well ahead of the five-year average, though winter wheat conditions unexpectedly declined. On the geopolitical front, markets briefly reacted to the news of prospective ceasefire talks between Ukraine and Russia, although subsequent clarifications tempered expectations.

Freight

Freight Recap:
21/05/25

May 21, 2025

The Handysize segment saw mild gains in most Atlantic regions. The Continent and Mediterranean moved slightly higher, while the US Gulf and South Atlantic markets remained balanced, helped by steady cargo flows and tighter prompt tonnage. Sentiment was stable to slightly firmer across the basin.

Commodities

Agri- Commodities:
12-16/5/25 Agri

May 19, 2025

Monday kicked off with a flurry of major developments. The USDA’s first 2025/26 crop year projections revealed tighter-than-expected corn and soybean ending stocks, lifting those markets, though wheat futures lagged on a more bearish supply outlook. Meanwhile, U.S.-China trade optimism resurfaced after both sides agreed to a 90-day mutual tariff rollback, triggering gains in soybeans and financial markets. U.S. crop planting made notable headway, while winter wheat ratings improved by three points to 54% good to excellent.

Freight

Freight Recap:
15/05/25

May 15, 2025

The North Atlantic saw further pressure this week as mineral fronthaul activity continued at discounted levels and transatlantic demand remained thin. Tonnage availability increased, widening the bid-offer spread and contributing to a downward drift in rates.

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