Weekly Freight Recap: 22/08/24
Aug 22, 2024
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.
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.
