Weekly Freight Recap: 12/12/24
Dec 12, 2024
PANAMAX
Atlantic: The Atlantic Panamax market saw mixed developments, with slight improvements in tonnage balance providing some stability. Transatlantic routes showed marginal gains due to steady demand and tighter tonnage lists, while fronthaul trips faced pressure from limited fresh inquiries and competitive rate-cutting among owners. The South American grain season remains slow, but vessel demand is expected to pick up in the coming weeks. Meanwhile, the US grain season has peaked, leading to a notable drop in activity.
Pacific: The Pacific market continued to face challenges, as record-high coal inventories in China, combined with unseasonably warm weather, dampened coal demand. Limited replenishment from key origins added to the strain, leaving the basin oversupplied. Early-week signs of stability faded as rates remained under pressure, and overall sentiment stayed muted due to cautious activity across the board.
SUPRAMAX
Atlantic: The Supramax market saw increased cargo volumes but remained weighed down by an abundance of tonnage, causing rates to stay below previous levels. The South Atlantic exhibited some positive sentiment, with mineral cargoes supporting activity, but the Continent-Mediterranean and US Gulf markets continued to struggle with low demand and high vessel availability. As the festive season approaches, owners and traders are expected to finalize positions, potentially leaving leftover volumes in the market.
Pacific: In the Pacific, steady flows of Indonesia-India and Indonesia-China coal shipments kept activity moving, but low volumes in other areas like the WC India-MEG region limited broader improvements. Prompt tonnage availability continued to rise, and sentiment remained subdued. Period market activity was minimal, with only a few reported fixtures.
HANDYSIZE
Atlantic: The Handysize market faced ongoing challenges, with the Continent-Mediterranean weighed down by high vessel availability and limited opportunities. The South Atlantic saw little change, with tonnage supply putting downward pressure on rates. The US Gulf remained slow, with weak sentiment and limited fixing activity. Charterers often bid below previously agreed levels, further restraining any recovery.
Pacific: In Asia, negative sentiment persisted, driven by growing tonnage availability and limited fresh inquiries. Rates remained under pressure with no significant improvement in sight. Fixing activity was sparse, reflecting broader market caution.
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.
