Weekly Freight Recap: 21/11/24
Nov 21, 2024
PANAMAX
Atlantic: The Atlantic Panamax market faced strong headwinds with minimal fresh demand, especially from EC South America and the US Gulf, leading to an oversupply of tonnage and lower rates. Baltic cargo provided limited support, but overall, sentiment remained bearish. Seasonal factors may bring a bounce in February when the Brazilian soybean season begins, but near-term demand remains subdued.
Pacific: The Pacific basin saw slightly better activity, with steady Australian demand offering some relief. However, growing tonnage counts kept rates under pressure, and charterers remained cautious. Global congestion levels for loading are at their lowest in 2023, while discharging congestion has risen but remains below average. Overall, the outlook is challenging, with rates unlikely to recover meaningfully in the short term.
SUPRAMAX
Atlantic: The Atlantic Supramax market continued to struggle, with oversupply of tonnage and weak demand in the US Gulf and South Atlantic pushing rates lower. The Continent and Mediterranean markets saw slight stability, but overall, the Atlantic remained under pressure.
Pacific: In the Pacific, high tonnage levels kept rates soft, despite limited signs of stabilization in Northern Asia. Period activity was sparse, and overall sentiment stayed weak. The Indian Ocean also experienced patchy demand, contributing to subdued rates across the sector.
HANDYSIZE
Atlantic: The Handysize market saw mixed sentiment. While rates in the South Atlantic showed slight improvement due to stronger fundamentals, the US Gulf remained under pressure with heavy tonnage availability and weak demand. The Continent and Mediterranean held steady at previous levels, but no significant gains were recorded.
Pacific: The Pacific Handysize market faced challenges, with rising tonnage levels and a lack of fresh cargo forcing owners to lower their rate expectations. Overall, the regional market remained soft, with limited activity and downward pressure on rates.
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.
