Weekly Freight Recap: 20/06/24
Jun 20, 2024
PANAMAX
Atlantic: The Panamax market in the Atlantic basin faced a continued downturn, lacking substantial activity. South American routes, in particular, saw increased ballaster tonnage, leading to nervous sentiment among charterers who either retracted bids or offered significantly lower rates. Minimal fresh cargo from North America also contributed to the softness, resulting in owners accepting reduced rates to secure employment. Although there was a slight increase in grain and mineral activities towards the end of the week, it was insufficient to boost the market significantly.
Pacific: The Panamax market similarly suffered from declining values in the Pacific. The bid/offer gap remained wide, particularly for longer trips from the northern region, as charterers maintained a firm stance. Southern areas, such as Indonesia, saw an easing market, reflecting the overall downward trend. Despite a muted start to the week due to holidays, the market sentiment remains cautiously optimistic for a potential upturn driven by seasonal trends and anticipated grain shipments from the Black Sea.
SUPRAMAX
Atlantic: The Supramax market experienced a relatively stable week with healthy activity levels across the Atlantic basin. However, the lack of new cargo from the US Gulf exerted downward pressure on rates. The Continent-Mediterranean region remained optimistic, with brokers reporting stronger numbers from South America, albeit with some influence from the weaker Panamax sector. Grain and mineral shipments balanced the market despite little room for rate improvement. US Gulf fixtures saw stabilization, with notable rates for transatlantic routes and trades to the Mediterranean and Continent.
Pacific: The Supramax market displayed a more robust sentiment in the Pacific. While backhaul cargo pressure from the north had slightly slowed, the southern routes showed better numbers, particularly from Indonesia. The Indian Ocean and South African markets remained stable, with consistent rates. The Pacific market overall held steady, with Pacific coal round voyages achieving moderate rates. The general sentiment was that while current activities supported the market, increased cargo volume would be necessary to sustain or improve rates.
HANDYSIZE
Atlantic: The Handysize market in the Atlantic was led by significant gains in the US Gulf, where owners benefitted from a lack of prompt tonnage. This resulted in substantial rate increases, particularly for two to three-laden legs with Atlantic redelivery. The Continent and Mediterranean regions also saw continued resurgence with modest gains, while the South Atlantic faced softening due to limited enquiry and growing tonnage lists.
Pacific: The Handysize market remained balanced with a healthy cargo list in the Pacific. However, more fresh enquiries would be needed to maintain the current status. Despite this balance, there was no significant rate improvement, with the market relying on steady demand to keep rates from declining. Overall, the Handysize sector showed stability but with cautious optimism dependent on future cargo volumes.
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.
