Weekly Freight Recap: 06/06/24
Jun 03, 2024
PANAMAX
Atlantic: The Panamax market in the Atlantic remained sluggish, with the North Atlantic continuing to underperform due to limited cargo availability and competition from smaller vessels. Rates saw downward pressure as owners sought to cover positions in a lacklustre market. Despite this, there were slight improvements in the ECSA region, suggesting a potential market floor might be forming. Posidonia in Athens contributed to a quiet start to the week, with minimal new inquiries and a generally subdued market sentiment.
Pacific: The Pacific basin also experienced a softer market, though the decline was less pronounced than in the Atlantic. Limited activity marked the beginning of the week, but some support came from the South American route (P6), which saw higher levels for early July arrivals. Steady cargo flow in Asia provided a slight impetus, helping the Panamax timecharter index to rise modestly. However, the overall sentiment remains cautious, with expectations of further weakening as market dynamics adjust post-Posidonia.
SUPRAMAX
Atlantic: The Supramax market in the Atlantic was characterized by a lack of fresh activity, largely due to the ongoing Posidonia effect. Rates remained flat across most areas, with brokers reporting minimal changes. Some fixtures were noted, but detailed information was scarce. The overall sentiment remained tepid, awaiting more significant movements post-Posidonia.
Pacific: In contrast, the Pacific Supramax market saw more activity, particularly focused on the nickel ore routes. Rates for trips via Indonesia to India and China were relatively stable, reflecting steady demand in the region. The Pacific market performed well across geared size segments, with the Handy index remaining stable. Trips from India to the Continent/Mediterranean and inter-MEG/MEG-EC India routes maintained firm rates. However, backhaul trades saw limited interest due to ample tonnage in the Atlantic and low cargo volumes. The market anticipates increased activity once the Posidonia effect diminishes and players return to their desks.
HANDYSIZE
Atlantic: The Handysize segment experienced a quiet week, with Posidonia limiting activity as many market participants attended events in Athens. The BHSI index fell slightly, reflecting the muted sentiment. The South Atlantic continued to see rate erosion due to a lack of fresh cargo. The US Gulf region saw some resistance from owners against further rate reductions, but significant changes in sentiment require more cargo volume. Overall, the market remained subdued, with little visible activity.
Pacific: The Pacific Handysize market also slowed, particularly in Southeast Asia, where a lack of fresh inquiries contributed to a negative outlook. Tonnage lists are expected to grow as activity remains stifled. In North China-Japan, recent improvements were followed by a lull, leading to potential corrections in the coming days. The overall sentiment in the Pacific mirrors the cautious approach seen across the other segments, with market participants awaiting post-Posidonia adjustments.
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.
