Weekly detailed analysis of world shipping freight markets for all major routes for December 11 – December 17, 2023
Capesize (Atlantic and Pacific)
Although weaker fixtures in the Atlantic and adverse weather conditions in the Pacific, in particular in North China, impacting the general sentiment, the market remained resilient. Pacific activity was slightly lower and the Atlantic faced challenges with stagnant activity, both from S Brazil and W Africa to the F East. The BCI 5TC route closed the week at $34,107/d, reflecting the market fluctuations and uncertainties. Vale fixed a mini-COA basis TBN vessels for stems of 170,000 mt +/- 10% iron ore from Tubarão to Qingdao, from 1 February - 31 May at a freight rate of $17.25/mt with a bunker adjustment factor clause, bunker reference at $500/mt. In the Pacific, towards the end of the week Rio Tinto fixed two TBN vessels to load their cargoes of 170,000 mt +/- 10% iron ore from Dampier to Qingdao, laydays 24/26 December and 27/29 December, respectively at freight rates of $14.55 and $14.25/mt. BHP fixed the MV Great Song (180,388 dwt | 2011 built) to load a cargo of 160,000mt +/- 10% iron ore from Port Hedland to Qingdao, laydays 27/29 December at US14.25/mt. FMG fixed a TBN vessel to load a cargo of 160,000 mt +/- 10% iron ore from Port Hedland to Qingdao, laydays 29/31 December at $14.88/mt. Mercuria fixed a TBN vessel to load a cargo of 160,000 mt +/- 10% iron ore from Port Hedland to Qingdao, laydays 29/31 December at $15.00/mt. Vale fixed a TBN vessel to load its cargo of 170,000 mt +/- 10% iron ore from TRMT to Qingdao, laydays 21/23 December at $12.45/mt. In the Atlantic basin, Vale fixed the MV Saiko (180,178 dwt | 2010 built) and also one or two TBN vessels to lift its cargoes of 170,000 mt +/- 10% iron ore from Tubarão to Qingdao, laydays 10/15 January, at freight rates of $23.75 and $24.25/mt. Vitol fixed a ST Shipping TBN vessel to load a cargo of 170,000 mt +/- 10% iron ore from Tubarão to Qingdao, laydays 1/10 January at $26.00/mt. Trafigura fixed the MV Achievement (175,850 dwt | 2011 built) to load 170,000 mt +/- 10% iron ore from Sudeste to Qingdao, laydays 18/22 January at $24.00/mt. Cosco fixed the MV Grand Sakura (181,924 dwt | 2021 built) to load a stem of 170,000 mt +/- 10% bauxite from Boffa to Jingtang, laydays 1/15 January at $26.00/mt. A Koch TBN vessel was fixed by Treasure Boost Shipping to load a cargo of 170,000 mt +/- 10% iron ore from Freetown to Qingdao, laydays 9/13 January at $25.25/mt. From South Africa Anglo American fixed a ST TBN vessel and also another TBN vessel to load stems of 170,000 mt +/- 10% iron ore from Saldanha Bay to Qingdao, laydays 28/30 December and 1/5 January, respectively at freights of $21.75 and $21.50/mt.
Panamax (Atlantic and Pacific)
After weeks of strong volatility, the Panamax Atlantic market had a correction with TransAtlantic RV losing value mainly due to a lack of significant demand from Northern regions, especially on the mineral side. On the other hand, in S American a steady amount of demand was recorded with the tonnage count slightly reducing and leading the way to improving rates. At the end of the week the Houthis attacks along with a the Panama Canal situation pushed rates suddenly positive. P1A_82 closed the week with a - $4,000/d compared to Monday, a major grain house fixed a 2012 Kamsarmax for $21,000/d dop Gib for a trip via USG to Skaw/Spain with grains. P6_82 gained almost $1,000/d compared to the previous Friday with fixtures reported in the low/mid $16,000s/d for standard Kamsarmax with eta ECSAm first half January.
In Asia, the volume of fixing decreased substantially and only a handful of deals were rumoured. South Pacific lacked any meaningful demand to lend any support and rates for shorter rounds inevitably decreased while the tonnage list was getting longer. A 77,200 dwt built 2009 open Ningbo 9 December was allegedly fixed for a trip via Indo, redelivery S China around $12,500/d. A 2005 built 76,200 dwt open Tianjin 12/15 December was reported for a NoPac RV around $11,500/12,000/d. In the middle of the week, an 82,900 dwt built 2013, open Yeosu prompt was placed on subjects for a NoPac RV with grains around $15,000/d and a scrubber fitted 81,700 dwt built 2019 with dely in direct continuation Dafeng prompt got $17,250/d for a NoPac RV and scrubber benefit to Charterers. Towards the end of the week with the holidays approaching the market slowed quite a lot.
Handy (Far East/Pacific)
Another week on a negative trend; rates of the most representative routes decreased both on Handies and on Supramaxes. A 63,000 dwt with dely S China was reported at $12,000/d for a trip via Australia to Spore/Jpn range, a similar unit with dely Japan was done at $12,350/d for a trip via NoPac to Spore/Jpn range, a 55,000 dwt with dely Indo took high $14,000s/d for a trip via Indo to China and another Supramax with dely mid-China was fixed at $7,700/d for a trip via Indo back to China. Regarding west direction, a 61,000 dwt with dely mid-China was fixed for a trip via Indonesia to India at $11,000/d for ECI and $10,000/d for WCI. On Handies, a 28,000 dwt open S Korea took $8,750/d for a trip via Australia to SE Asia.
Handy (North Europe/Black Sea/Mediterranean)
The market in Cont was still strong. A 58,000 dwt was reported fixed at $33,000/d with scrap from ARAG to Turkey, another 58,000 dwt open Immingham was repored fixed with grains to W Africa at $26,000/d dop. Another 58,000 dwt was fixed with scrap to US EC at $18,000/d. In the Russian market a 55,000 dwt open Dunkirk fixed a trip via Baltic Russia to SE Asia at $40,000/d.
Although the market generally maintained a flat trend, still at interesting levels, last week a slowdown was noticed, especially for Supramax, but the feeling is that Handies might follow shortly. 35,000 dwt CrossMed were fixing $16,000/d basis dely passing Canakkale, the same level for trips to Cont. To USG rates increased to $19/20,000/d for 35/38,000 dwt vessels, trips to ECSAm were done at $17,000/d level. Supramaxes slowed to the same levels whilst on CrossMed were achieving mid/high teens. The trips East for Supramax slowed quite significantly to $27.000/d and low $20,000/d for Handies.
Handy (USA/N.Atlantic/Lakes/S.America)
The market was softening a bit, but was still strong. The tonnage list increased dramatically due to the ballasters. The most preferred routes were CrossCaribbs and fronthaul. Petcoke to India on Ultramax was fixed at $47,500/d, while on Supramax a ship was fixed at $45,000/d. The grains trade to Spore/Jpn range on Ultramax was covered at $42,000/d. On TransAtlantic an Ultramax was fixed at $55,000/d to Morocco with petcoke and a grain cargo to Atlantic Colombia was covered at $47,000/d on Supramax. On Handies a 39,000 dwt was fixed at $30,000/d for a trip to UK with woodpellets and a petcoke cargo to Lebanon was covered at $23,000/d on a 31,000 dwt.
Firmer rates were recorded compared to the previous week. A 37,000 dwt built 2012 was fixed at $45,000/d basis dely aps Recalada for a trip with grains to WCSAm. A 61,000 dwt was fixed basis dely S Brazil at $33,000/d for a tct with grains to W Med. At the end of the week a nice 63,000 dwt was evaluated $28,000/d for a grain trade to W Med, owners were seriously considering it.
Handy (Indian Ocean/South Africa)
Activity slowed in MEG and WCI despite owners were asking higher rates compared to the previous week for cargoes. ECI was stable and a 63,300 open Paradip was reported for a trip via ECI to China at $20,000/d dop, trips to China with iron ore was done at the same level like a 63,500 dwt built 2017 open Ennore 16 Dec. Rates remained largely unchanged from S Africa, a 63,000 dwt built 2017 open Durban 19/22 Dec was reported at $21,000/d + 210,000 gbb for a tct to F East, a 61,000 dwt fixed at $18,000/d + 180,000 gbb for a trip to Pakistan and a Tess58 got $17,500/d + 175,000 gbb on the same route.
Banchero Costa and Co Spa
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