Weekly detailed analysis of world shipping freight markets for all major routes for April 8– April 15, 2024.
Capesize (Atlantic and Pacific)
Moderate demand, especially from Australia, supported Capesize freight rates; in the Atlantic optimism continues to prevail, hence the upward trend last week. Iron ore futures prices kept increasing supported by the expectations that construction activity is picking up in China and hopes of more stimulus in the second quarter. In the Pacific, Rio Tinto fixed two TBN vessels to load its cargoes of 170,000mt +/- 10% iron ore from Dampier to Qingdao, both for laydays 28/30 April, respectively at freight rates of $10.50 and $10.85/mt. FMG fixed a TBN vessel to load its cargo of 160,000mt +/- 10% iron ore from Port Hedland to Qingdao, laydays 27/29 April at $10.75/mt. BHP fixed a TBN vessel to load its cargo of 160,000mt +/- 10% iron ore from Port Hedland to Qingdao, laydays 29 April/1 May at $10.50. Arcelor Mittal fixed a MOL TBN vessel to load a cargo of 152,000mt +/- 10% coal from Dalrymple Bay Coal Terminal to Rotterdam plus Dunkirk, laydays 1/10 May at $17.10/mt. The MV Mineral Edo (207,219 dwt | 2015 built), Lanqiao on 15/16 April was fixed for a timecharter trip via Australia to Japan at $36,000/d, for a JFE tender. Richland fixed the MV Cape boss (175,882 dwt | 2003 built), Xiamen on the 14 April for one timecharter trip within the Pacific at $25,000/d. In the Atlantic basin Vitol fixed a Golden Ocean TBN vessel to load a cargo of 190,000mt +/- 10% iron ore from Tubarão to Qingdao, laydays 25/30 April at $24.00/mt. There was also some activity with fixtures concluded for voyages from Brazil to China with West Africa options, at freight rates between $24.50/mt and $26.00/mt with Mercuria associated with several fixtures for mid-May dates, including a deal at $25.50/mt for laydays 10/19 May, with Nouadhibou options. Cosco won the Posco tender for a cargo of 150,000mt +/- 10% iron ore from Port Cartier to Gwangyang, laydays 5/19 May at around $31.00/mt freight. Out of South Africa, Anglo American fixed a Capesize vessel to move a cargo of 170,000mt +/- 10% iron ore from Saldanha Bay to Qingdao for May 5-10 laycan at a freight rate of $18.50/mt.
Panamax (Atlantic and Pacific)
An unexciting week for the Panamax Atlantic Market with a very slow start characterized by weak mineral/grains demand from both northern and southern regions. Nonetheless, towards the end of the week a slightly positive pick up was noticed with some interesting fixtures reported especially from S America. P1A_82 suffered a w-o-w loss of approximately $1,000/d with fixtures reported showing different grain houses fixing on Panamax at $21,000/d basis dely aps ECSAm redely Passero, equivalent of around $13,100/d Gib/Gib on BKI. P2A_82 remained pretty much flat throughout the week, with a 2021 built Kamsarmax reported around $29,000/d dop Brake for a trip via ARAG to China. P6A_82 witnessed a mid-week twist with the list of ballasters shortening all of a sudden and a major grain house fixing 3 vessels well above market. For instance, in comparison to beg week (and end of last week as well) where vessels were being fixed in the $17,000/d P6 equivalent on BKI, we have seen a couple of May arrivals getting the equivalent of lower $18,000/d P6 equivalent pushing the market up to close the week at $18,315/d.
ECSAm was active again and many vessels started ballasting towards Singapore. This reduced the supply of tonnage and with increased activity from Indonesia and Australia Pacific rates increased. NoPac was not very active with only a few fixtures in the low/mid-teens basis dely Japan. Indo RV was in the low/mid-teens basis dely S China. Australia RV was in mid/high-teens basis dely CJK/N China. India was quite active with its regular tenders and with fixtures in the lowteens from Indo and mid-teens from Australia basis dely S China.
Handy (Far East/Pacific)
The Far East market remained more or less stable last week, with rates on the most representative routes not changing that much, both on Handies and on Supramaxes. A 63,000 dwt delivering with dely N China was reported at $16,500/d for a trip via the Philippines to China with nickel ore, a 55,000 dwt with dely Philippines was done at $21,000/d to China, and a 57,000 dwt with dely Singapore was fixed at $12,500/d for a trip via Indonesia to N China. A 55,000 dwt delivering to Indonesia was fixed at $15,500/d for a trip via Indonesia to Thailand. To the west, a 64,000 dwt with dely Indonesia was fixed at $15,000/d for a trip via Indonesia to the WCI. A 37,000 dwt passing Singapore took $11,000/d for a trip via Australia to N China with grains.
Handy (North Europe/Black Sea/Mediterranean)
Holidays affected activity, which was very low, especially for Handysize units, but rates still remained stable especially for Supramax thanks to a good number of scrap cargoes from Continent and Baltic. A 63,000 dwt fixed a trip via Baltic redely S Africa at $18,500/d.
Rates moved in opposite directions: on the one hand the declining markets of USG and S America led to higher TA rates, on the other hand CrossMed and Med-Cont rates were stagnant; good demand from Ukraine and Russia prevented the market to collapse. Units not trading those countries recorded rates $2/3,000/d lower compared to last week. For 35,000 dwt units CrossMed rates were at $9/10,000/d basis dely Canakkale, $11/12,000/d if Ukraine or Russia loading. 58,000 dwt units were fixing around $11/12,000/d depending on destination. TransAtlantic trips improved: Handies were getting $14,000/d for trips to USG and around $11,500/12,000/d for trips to ECSAm. Supramax trips to USG were at $13/14,000/d depending on size and redelivery, and at $16,000/d for W Africa destinations. Fronthauls were still strong with Supramaxes getting $26,500/d basis dely passing Canakkale via BSea to Spore/Jpn range and Handies in the $17/18,000/d.
Handy (USA/N.Atlantic/Lakes/S.America)
The market in USG kept cooling off, however the decline was slower compared to the previous weeks. Grains to Spore/Japan range were fixed at $20,000/d on Supramax and at $26,000/d on Ultramax while the petcoke trade to India was covered on Ultramax at $26,000/d. On TransAtlantic trips an Ultramax to Cont/Baltic with coal was fixed at $19,000/d, woodpellets to UK/Cont were done at $16,000/d and grains to Port Said were covered at $16,500/d. Handies were fixed in the mid-teens with dirty cargoes to Med and in the low/mid-teens for clean cargoes to Continent.
Rates were still firm especially when compared to USG, NCSAm and US EC. A modern 38,000 dwt was fixed at $18,625/d basis dely aps Recalda for a trip with grains redely Skaw/Passero. Rates on fronthaul were assessed around $22/23,000/d on nice 38,000 dwt tonnage for trips to Spore/Jpn range with grains. Fronthaul was assessed around $20,000/d for 58,000 dwt tonnage basis dely W Africa via ECSAm to Spore/Jpn range.
Handy (Indian Ocean/South Africa)
The market remained more or less flat during the week, despite the long local holidays in the area. A 52,000 dwt open MEG was fixed for a trip to Bangladesh with aggregates around $14,250/d dop level. For similar business, a 60,000 dwt was fixed basis aps Salalah at $21,000/d. Another 63,000 dwt open Srilanka was rumoured at $11,500/d for a trip via UAE to Bangladesh. Due to the limited activity on the iron ore trade from ECI to China, many vessels were ballasting to S Africa or Indonesia. A 56,000 dwt Open Bangladesh was rumoured at $12,000/d dop for a trip via ECI to China with iron ore. Rates continued to slide from S Africa throughout the week. Early in the week, a 63,000 dwt was rumoured at $23,000/d + 230,000 gbb for a trip to F East. As the week progressed, a similar vessels were rumoured at $22,250/d + 225,000 gbb. Towards the end of the week, a 58,000 dwt was fixed at $20,000/d + 200,000 gbb.
Banchero Costa and Co Spa
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