Weekly Freight Recap: 16/01/25

Jan 16, 2025

PANAMAX Atlantic: The Atlantic market faced persistent challenges with limited demand from South America and an oversupply of tonnage. Northern regions saw fixtures concluded at discounted levels due to scarce activity, while grain trades struggled to hold steady. Ballaster positions remained under pressure, reflecting subdued sentiment.

Pacific: The Pacific market offered slightly more activity on longer routes, particularly NoPac runs, but shorter voyages faced significant rate pressure. Grain trades in the East provided some support, but overall, the market remained weak due to oversupply. Recovery is unlikely before increased coal trades and South American soybean exports boost activity.

SUPRAMAX Atlantic: Weak demand and abundant tonnage supply kept rates under pressure across the region. The US Gulf showed signs of stabilizing for transatlantic runs, but the Continent and Mediterranean markets remained quiet. Slight improvements in the South Atlantic were insufficient to balance the market.

Pacific: Soft demand and a growing tonnage list dominated, with owners adjusting expectations amid limited fresh cargo availability. Charterers continued to hold the upper hand across the basin. HANDYSIZE Atlantic: Activity was sparse across the US Gulf, South Atlantic, and Mediterranean regions, where excessive tonnage weighed heavily on sentiment.

Pacific: The market stayed under pressure, with Southeast Asia seeing a buildup of tonnage and limited demand. Rates remained weak with no signs of imminent recovery.

Weekly Recaps

Commodities

Agri- Commodities:
10-14/2/25 AGRI

Feb 17, 2025

Wheat prices diverged as Euronext gained while CBOT declined. MATIF wheat found support from Algeria’s tender, lower Russian wheat crop projections, and a weaker euro. IKAR lowered its 2024/2025 Russian wheat export estimate to 43.0 mmt and production estimate to 77–87 mmt. Meanwhile, Russian wheat prices rose to $245/ton FOB for March delivery. Algeria sought 50k tons of soft milling wheat for April shipment. U.S. weekly export inspections showed strong wheat volumes, while President Trump’s new 25% tariffs on steel and aluminum heightened trade tensions. Despite this, Mexico’s corn purchases remained active, with the USDA reporting private sales of 365k tons for 2024/2025 delivery.

Freight

Freight Recap:
13/02/25

Feb 06, 2025

Atlantic: The market remained under pressure with weak demand and an oversupply of tonnage, particularly in the North Atlantic. Limited fresh cargo made it difficult for owners to secure strong rates, with charterers holding the upper hand in negotiations. In the South Atlantic, sentiment remained negative, with further corrections for forward positions, particularly for vessels ballasting to East Coast South America.

Commodities

Agri- Commodities:
3-7/2/25 AGRI

Feb 10, 2025

Grain markets opened on the defensive but rebounded after news broke that Mexico would delay imposing tariffs, following a last-minute agreement with Canada. This pause suggests tariffs are being used as a negotiation tactic rather than an end goal. President Claudia Sheinbaum announced that Trump agreed to suspend tariffs for a month in exchange for Mexico reinforcing its northern border. Similarly, the U.S. and Canada suspended tariffs temporarily, contingent on strengthened Canadian border security. However, China retaliated with new tariffs on U.S. coal, LNG, crude oil, and agricultural equipment, escalating trade tensions. Ukraine’s grain exports rose to 25.77 mmt, reflecting increased wheat and barley shipments, though corn exports declined. U.S. export inspections showed solid corn and soybean figures, but wheat lagged. Russian wheat prices continued their upward trajectory, while Eurozone inflation unexpectedly rose, reinforcing the European Central Bank's cautious stance on rate cuts.

Freight

Freight Recap:
06/02/25

Feb 06, 2025

Atlantic: Strong demand from South America pushed rates higher, with fronthaul routes tightening tonnage. The market remained firm for February-March arrivals, though long-term gains may be capped by weaker coal demand and slower economic growth.

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