Weekly Freight Recap: 03/07/25

PANAMAX

The Panamax market held broadly steady this week, though signs of softening began to emerge toward the close, particularly in areas where prompt tonnage began to outpace fresh demand. Across the Atlantic, sentiment remained mixed. The North Atlantic saw tight tonnage lists at the start of the week, helping to maintain rate levels for fronthaul and transatlantic runs. However, as the week progressed, a lack of fresh inquiry and cautious chartering activity created an increasingly positional market, especially in the North Continent and US East Coast areas.

In the South Atlantic, rates stayed relatively stable, although there were fewer fresh fixtures to support continued momentum. While some owners continued to secure decent returns, others found themselves under pressure to adjust ideas as July dates approached with thinner support.

The Pacific region maintained a steadier tone for most of the week. Australian and NoPac trades provided a consistent, if unspectacular, flow of cargo, helping to keep rates afloat. Indonesian coal demand showed pockets of support, though the overall volume appeared less robust compared to recent weeks. Despite this, better-spec ships were still able to command a premium, particularly for short-haul or repositioning trips.

Overall, sentiment remains cautiously balanced, with no strong bullish or bearish signals emerging. While fundamentals appear relatively tight in some areas, the lack of volume is beginning to weigh on owners’ confidence heading into the second half of June.

SUPRAMAX

The Supramax sector posted modest gains this week, supported primarily by improved sentiment in the Asia-Pacific region. Activity picked up gradually through the week, particularly Southeast Asia, where Indonesian coal and short-haul cargoes provided increased support. The NoPac grain market also contributed to a firmer Pacific tone, with some owners showing greater resistance in rate discussions amid tightening supply of spot tonnage.

In the Indian Ocean, market dynamics were slightly more varied. While some reports pointed to improved numbers on longer trips from the Middle East and East Coast India, others noted a more cautious approach from charterers amid fluctuating bunker prices and softening sentiment in certain trade lanes. Nonetheless, optimism appeared to be building slowly across the basin.

The Atlantic, by contrast, remained somewhat muted. In the US Gulf, sluggish cargo flow and a build-up of open tonnage led to increasing downward pressure, with owners having to adjust their expectations. Meanwhile, in the South Atlantic, market levels remained relatively resilient, although fixing activity was slow and positional. Tonnage lists appeared balanced for now, but participants are watching closely for any sign of tightening or fresh support from grain-related cargoes.

Period interest was seen in select cases, particularly for short to medium durations, as some owners sought to lock in coverage amidst uncertainty over forward earnings. While not yet a rally, this week has laid the groundwork for potential improvement, particularly if Pacific demand continues to hold up into early July.

HANDYSIZE

The Handysize market remained range-bound overall this week, with only modest directional changes across the main trading basins. In the Atlantic, the picture was mixed. The Continent and Mediterranean were generally quiet, with limited fresh enquiry and a steady build-up of prompt ships putting pressure on owners’ ideas. Despite this, rates held at or near last done levels for most of the week, with many charterers content to wait and see if further easing would emerge.

The South Atlantic continued to show signs of balance, with available tonnage broadly matched by cargo demand. That said, activity levels were thinner compared to recent weeks, and the lack of fresh fixtures contributed to an air of uncertainty. In the US Gulf, conditions softened somewhat, driven by weaker inquiry and a growing number of open ships. Owners increasingly faced resistance, particularly on longer trips, as charterers capitalized on their improved negotiating position.

In the Pacific, the market presented a more positive tone. A gradual pick-up in demand across Southeast Asia and Australia helped improve sentiment, and some owners were able to leverage this into firmer rates, especially on shorter regional runs. East Coast India and the Far East remained steady, with the cargo-to-tonnage balance relatively well aligned for now.

Overall, the Handysize sector enters the second half of June with a little clearer direction. While the Pacific offers modest upside potential, the Atlantic remains more cautious, and the market will likely require fresh stimulus from seasonal trades or commodity flows to generate more meaningful movement in the weeks ahead.