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:
6-10/1 /25 AGRI
Jan 13, 2025
Monday: Grain markets rebounded from Friday's losses, bolstered by a weaker dollar and pre-USDA report positioning. CBOT-denominated prices gained, though MATIF milling wheat remained an outlier. U.S. weekly export inspections showed mixed results, with wheat exceeding expectations while corn and soybeans remained within range. In Argentina, persistent hot and dry conditions continued to pose risks, while Brazil benefited from favorable weather. Kansas winter wheat conditions declined, adding concerns over the domestic crop.
Freight
Freight Recap:
09/01/25
Dec 12, 2024
The Atlantic market began with initial strength due to limited New Year tonnage, but rates flattened as more vessels entered the region. In the south, oversupply led to discounted rates, and forward fixing remained cautious. Spot vessels maintained premiums, but lack of fresh demand in the north and a long tonnage list saw rates ease, favoring charterers. EC South America faced additional pressure from long ballast lists and sub-index equivalent fixtures for early February.
Commodities
Agri- Commodities:
9-13/12 /24 AGRI
Dec 16, 2024
Monday: US wheat futures began the week on a positive note but struggled to maintain gains as MATIF wheat remained unresponsive. Corn saw slight upward movement, while soybeans softened ahead of Tuesday’s USDA report. The Russian wheat market showed resilience, with FOB prices for 12.5% protein wheat climbing to $228/ton, up $2 from the previous week. Concerns about the poor condition of Russian winter grains were tempered by IKAR analysts suggesting the reality may be less dire. Meanwhile, China’s Politburo announced aggressive economic stimulus measures, signaling a shift in fiscal and monetary policies, but these had minimal impact on grains. U.S. export inspections highlighted weak performance in wheat, with only 227k tons inspected, significantly below the previous week’s 299k tons.
Freight
Freight Recap:
19/12/24
Dec 12, 2024
Panamax transatlantic activity saw a modest boost as charterers sought coverage ahead of the holiday season, but an oversupply of tonnage in the East Mediterranean kept pressure on rates. Fronthaul routes remained lackluster due to weak demand from the Black Sea and continued ballasting toward Gibraltar, leaving the market constrained.
