Weekly Freight Recap: 23/01/25

Jan 23, 2025

PANAMAX Atlantic: The Atlantic market remained sluggish with limited fresh demand and an oversupply of tonnage. Transatlantic and fronthaul routes saw muted activity, and rates continued to soften. South American volumes offered some promise but failed to impact rates meaningfully, while the US Gulf remained quiet.

Pacific: The Pacific market weakened further, with long tonnage lists and softening demand weighing on sentiment. NoPac grain activity slowed, and Australian and Indonesian trades struggled at low levels. Limited optimism exists for recovery before mid-February.

SUPRAMAX Atlantic: Weak demand and abundant tonnage supply kept pressure on rates across the region. The US Gulf, Mediterranean, and South Atlantic markets showed minimal activity, with little improvement in sight.

Pacific: The Pacific market faced high vessel availability and subdued demand, with little pre-Chinese New Year activity. Owners adjusted expectations downward amid scarce fresh cargo opportunities.

HANDYSIZE Atlantic: Activity in the Atlantic remained limited, with an oversupply of tonnage weighing on sentiment. The US Gulf, South Atlantic, and Mediterranean markets offered few opportunities.

Pacific: The Pacific market struggled with growing vessel lists and weak demand, particularly in Southeast Asia. Rates remained under pressure with no signs of 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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