Weekly Freight Recap: 28/11/24
Nov 29, 2024
PANAMAX
Atlantic: The Atlantic Panamax market struggled with weak fundamentals, as grain volumes remained low and coal demand softened due to high inventories and mild weather. Mineral cargoes provided limited support, but fronthaul routes were pressured by an oversupply of vessels heading East. Rates continued to decline, with demand insufficient to balance the market. Recovery is unlikely without a significant uptick in grain demand and stronger fundamentals.
Pacific: The Pacific market saw limited activity, with demand from key origins remaining subdued. Some support came from southern minerals and tenders, but an oversupply of tonnage kept pressure on rates. Modest improvements in forward freight markets offered slight optimism, but meaningful recovery requires a tightening of vessel supply and higher cargo volumes.
SUPRAMAX
Atlantic: The Supramax market remained weak due to limited cargo volumes and an oversupply of vessels. In the South Atlantic, activity was minimal, with rates steady but under pressure. The Mediterranean and Continent lacked fresh demand, further frustrating owners. Period activity was slow, with little optimism for a significant improvement in the short term.
Pacific: In the Pacific, northern regions saw slower activity, while southern areas showed slight optimism. Indonesian coal cargoes provided some movement, but overall demand remained insufficient to ease the oversupply of vessels. The Indian Ocean saw modest activity, but rates stayed subdued across most regions.
HANDYSIZE
Atlantic: The Handysize market in the Continent and Mediterranean weakened as fresh demand failed to materialize. In the US Gulf, activity was limited due to holiday-related slowdowns, while the South Atlantic remained stable but under pressure.
Pacific: In the Pacific, the market faced challenges with rising vessel availability and limited cargo options. Anticipation of steel orders in December offered some hope, but current sentiment remained weak, and rates were under pressure across the region.
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.
