Weekly Freight Recap: 06/06/24

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.