Weekly Freight Recap: 27/06/24
Jun 27, 2024
PANAMAX
Atlantic: The Panamax market in the Atlantic remained sluggish, with rates continuing to decline. Limited activity from South America contributed significantly to this decline, as charterers held back. The mineral trade experienced heavily discounted rates, while the grain trade also saw minimal support. A two-tiered market emerged, with mineral trades faring worse. Despite firm fundamentals, such as ton-time growth outpacing fleet growth, the lack of sufficient cargo influx halted any potential recovery.
Pacific: In the Pacific, the Panamax market faced severe rate erosion. Owners heavily discounted shorter runs to minimize exposure to the depressed market. Growing tonnage lists and lack of new cargoes further pressured rates. Deals were concluded at significantly reduced levels, with long round trips falling dramatically. For example, the rate for a longer round trip was heard to be around $12,500. Market sentiment remained bearish with no signs of a near-term recovery, reflected in the BPI timecharter average correction to $15,149.
SUPRAMAX
Atlantic: The Supramax market in the Atlantic saw downward pressure on rates, particularly for transatlantic voyages. Increased activity on fronthaul routes from the Black Sea and the Continent provided some relief but was insufficient to counterbalance the overall decline. The South Atlantic faced an oversupply of tonnage, leading to further rate drops. The US Gulf market weakened, with owners' expectations for higher rates unmet and rates fixing below previous levels. For instance, an Ultramax fixed at around $29,000 for a trip with pet-coke, and a Supra fixed at $20,000 for a trip from USEC to the UK.
Pacific: The Pacific Supramax market showed better cargo volumes and increased activity compared to the previous week. Rates for Pacific round voyages were stable, although there was a noticeable gap between charterers' and owners' expectations. Some routes, such as those from South China via Indonesia, saw decent rates, like $12,500 for a trip to South China. Overall, the market remained flat with no substantial changes anticipated soon, as reflected in the 10TC average finishing at $15,530.
HANDYSIZE
Atlantic: The Handysize market in the Atlantic followed the broader trend of limited activity and declining rates. The East Coast South America market suffered from an oversupply of tonnage compared to demand, causing further rate erosion. For example, a vessel fixed at $15,000 for a coal run to the North Continent. The US Gulf market showed little change in fundamentals, maintaining an indifferent outlook with reasonable numbers achieved from the Continent and Mediterranean.
Pacific: In the Pacific, the Handysize segment remained balanced with a steady flow of inquiries. Rates for routes such as Indonesia coal runs held steady at around $13,000, but fresh cargo was needed to drive any significant market changes. The market in North Asia also saw steady rates, like $14,000 for a trip via South Korea to India, but overall sentiment indicated the need for increased demand to support potential rate improvements. The 7TC average was slightly up, finishing at $13,738.
Overall, the dry bulk freight market this week was characterized by falling rates and subdued activity across all segments, with a generally bearish outlook and no immediate signs of recovery.
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.
