Weekly Freight Recap: 23/05/24

PANAMAX

Atlantic: Activity in the North Atlantic decreased as most recent cargoes were covered, leading to potential downward rate adjustments. The trans-Atlantic market weakened due to a lack of freight, causing fronthaul rates to drift. In the South Atlantic, vessel counts rose, and South American rates picked up for late June arrivals, supported by strong FFA figures. Despite a slow start post-holidays, the East Coast South America (ECSA) showed resilience with stable volumes and decent demand projected from mid-May. Overall market sentiment is firm, with expectations for higher averages in Q3.

Pacific: The market showed signs of weakening, mainly from Indonesia, due to a seasonal decline in coal demand. Despite a stable tonnage count, a lack of bids created uncertainty about the market value. Rates for longer routes improved due to steady business from Australia, with some achieving higher rates. The overall sentiment in the Pacific remains mixed, reflecting firmness in certain areas and uncertainty in others.

SUPRAMAX

Atlantic: Negative trends were observed across most segments, with rates falling sharply for vessels in the North Continent, Mediterranean, and US Gulf due to a lack of fresh volume. The trans-Atlantic sector continued to struggle, needing more fresh enquiry to support rates. In the ECSA, resistance was noted with fixture volumes for trips both East and within the Atlantic, though bids were reported to be substantially lower than previous rates. Specific fixtures included trips from Brazil to the East Mediterranean and Southeast Asia, with rates indicating a challenging market.

Pacific: The Asian market held a positive trend, with rates higher than in the Atlantic. Ultramax and Supramax vessels saw healthy fixing activity with good cargo flow, mainly from Indonesia and Southeast Asia. Rates for trips via Indonesia to Southeast Asia remained strong, with owners asking for higher rates. Despite falling indexes, demand for trips from the North Pacific and Australia remained robust, with some achieving notably high rates.

HANDYSIZE

Atlantic: Pressure mounted on prompt tonnage with limited fresh enquiry in the Continent and Mediterranean. Stability prevailed, but potential rate adjustments were noted as activity slowed in the South Atlantic. Some owners showed reluctance to reduce levels further, with more cargoes emerging from the River Plate and Southern Brazil offering hope for near-term improvements. The US Gulf struggled with restricted fresh enquiry, leading to muted activity and steady rates.

Pacific: Positivity remained evident with a steady flow of fresh enquiry across all loading regions. Owners continued to see slight gains, indicating a relatively stable Asian market. Activity was muted due to holidays, but overall numbers remained steady, reflecting ongoing stability and resilience. The market maintained its position, with a healthy level of enquiries and some rate improvements noted.