Weekly Freight Recap: 22/08/24

PANAMAX

Atlantic: Tonnage availability in the Atlantic continues to expand, pushing rates down as owners chase diminishing market opportunities. The Continent remains particularly soft, with lower levels of activity leading to further rate erosion. The South Atlantic also weakened, with minimal fresh cargoes reported. Owners are becoming increasingly concerned, considering repositioning options as market sentiment remains bearish.

Pacific: The Pacific market saw some recovery in activity, with reports of increased demand for Indonesian round voyages, helping to stabilize the region's balance. However, despite these improvements, overall sentiment remains weak. The index continued to slide due to insufficient positive momentum. Market participants are closely watching the potential impact of upcoming grain and coal demand, which could shift dynamics in the coming weeks.

SUPRAMAX

Atlantic: The Atlantic Supramax market remains lackluster, with limited fresh inquiries and rates seeing little support. The Continent and Mediterranean regions struggled amid a continued summer lull, and the US Gulf saw stronger discussions for larger fronthaul cargoes, though fixing details remain scarce. The South Atlantic, while steady, still lacks the push needed for significant rate improvement, leading to a cautiously pessimistic outlook.

Pacific: In the Pacific, activity has slowed, especially in the southern regions, with earlier gains now appearing to level off. Increased tonnage availability has put further pressure on rates, leading to limited optimism. Indonesian and Australian cargo flows showed some resilience, but overall, the market remains largely stagnant. Market players are waiting for a potential uplift later in the year, although visibility remains low for now.

HANDYSIZE

Atlantic: The Handysize market saw limited activity across the Continent and Mediterranean, with sentiment remaining soft amid minimal fresh inquiries. The South Atlantic remains flat, with few cargoes emerging to absorb the tonnage. In the US Gulf, the imbalance between cargo and tonnage persists, keeping rates under pressure as fixing opportunities dwindle. Owners face a challenging environment with little expectation of an immediate improvement.

Pacific: The Pacific market showed marginal improvement, aided by slightly better cargo availability from Australia and Indonesia. However, the rise in activity has done little to reverse the overall downward trend, with tonnage availability still exceeding demand. The market remains cautious, with owners hoping for a more sustained rebound later in the year, though current visibility remains limited.