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
Freight
Freight Recap:
05/06/25
Jun 05, 2025
The Panamax Atlantic market showed signs of a strong rebound, especially in both the North and South where firmer bids and tightening tonnage contributed to rising sentiment. Fixtures suggested that some charterers may have overplayed their hand, triggering a jump in rates
Commodities
Agri- Commodities:
26–30 /5/25 Agri
Jun 02, 2025
Monday opened quietly in Europe as U.S. markets remained closed for Memorial Day. MATIF wheat traded lower in thin volumes, but losses were limited by concerns over dry conditions in France and rising temperatures in Russia. The May JRC MARS Bulletin painted a mixed EU crop outlook, nudging soft wheat yield estimates slightly higher but trimming rapeseed expectations. Meanwhile, geopolitical noise grew louder with President Trump mulling new sanctions against Russia, and Germany lifting range restrictions on Ukrainian strikes using Western weapons.
Freight
Freight Recap:
29/05/25
May 29, 2025
The Atlantic market struggled with weak sentiment throughout the week. Following recent holidays, demand remained soft and fresh cargoes were limited, particularly in the North. In the South, while some fixing activity was noted, oversupply of ships continued to weigh heavily on rates. Owners faced increasing pressure as charterers held firm, and some vessels were reported fixing below last done.
Commodities
Agri- Commodities:
19-23/5/25 Agri
May 26, 2025
Grain markets exhibited volatility throughout Week 21, with wheat prices leading a mid-week rally before easing slightly into the weekend. Early in the week, MATIF milling wheat weakened in response to Saudi Arabia’s tender, which confirmed continued preference for competitively priced Black Sea wheat. Meanwhile, CBOT futures found strength, buoyed by a broader risk-on sentiment in financial markets after a brief dip following Moody’s downgrade of the U.S. credit rating. U.S. corn inspections came in strong, and planting progress remained well ahead of the five-year average, though winter wheat conditions unexpectedly declined. On the geopolitical front, markets briefly reacted to the news of prospective ceasefire talks between Ukraine and Russia, although subsequent clarifications tempered expectations.
