Weekly detailed analysis of world shipping freight markets for all major routes for December 4 – December 10, 2023
Capesize (Atlantic and Pacific)
After weeks of remarkable gains, Capesize rates were volatile and dropped to an average $35,320/d at the end of the week. Nevertheless, rates are still healthy with firm seasonal activity and raw material demand supporting freight rates. Strong iron ore demand and seasonally stronger iron ore trade are expected by market participants. Despite the presence of Rio Tinto and BHP fixing some cargoes, overall activity in the Pacific was not strong and in the Atlantic market activity was minimal. In the Pacific, Rio Tinto fixed two TBN vessels to load their cargoes of 170,000mt +/- 10% iron ore from Dampier to Qingdao, both for laydays 24/26 December at freight rates of $10.95 and $10.50/mt. BHP fixed a TBN vessel to load its cargo of 160,000mt +/- 10% iron ore from Port Hedland to Qingdao, laydays 23/25 December at a freight of $10.40/mt. Libra fixed a TBN vessel to lift a cargo of 150,000mt +/- 10% coal from Samarinda to Mundra, laydays 15/23 December at $8.35/mt. TKSE fixed a TBN vessel to load a stem of 170,000mt +/- 10% coal from Abbot Point to Rotterdam, laydays 30 December / 5 January at $13.60/mt. A LDC TBN vessel was fixed by Netbulk to lift a stem of 160,000mt +/- 10% iron ore from San Nicolas to Qingdao, laydays 10/14 January at $25.00/mt. In the Atlantic basin TKSE fixed a TBN vessel to load a cargo of 180,000mt +/- 10% iron ore from Seven Islands to Rotterdam, laydays 31 December / 6 January at $13.25/mt. Treasure Boost Shipping fixed an Oldendorff TBN vessel to load a cargo of 170,000mt +/- 10% iron ore from Freetown to Qingdao, laydays 27 December / 1 January at a freight rate of $27.80/mt. The MV Royal Iole (180,129 dwt | 2009 built) was fixed for the NSC Tender basis delivery to make Pointe Noire, laydays 1/10 January for one timecharter trip to Japan at around $60,000/d. From South Africa, Mercuria fixed the MV Capt G (182281 dwt | 2023 built) to lift a cargo of 170,000mt +/- 10% iron ore from Saldanha Bay to Qingdao, laydays 26/31 December at $21.50/mt.
Panamax (Atlantic and Pacific)
Activity finally weakened both in the Northern and the Southern areas and rates dropped pretty much everywhere. Some plausible explanations are that the Capesize market was less tight, more ballasters arrived in the basin and spot cargoes were largely covered. P1A_82 an P2A_82 were the routes that suffered the most with losses of approximately $3,000/d and $4,000/d respectively w-o-w. A 2016 Kamsarmax was rumored at $25,000/d basis dely Gib for a trip via NCSAm with grains to Skaw/Gib range. US EC coal cargoes to India remained pretty active and a Kamsarmax achieved $38,000/d basis dely Gib. A weakening P6 route was also recorded with not a lot of spottish grain activity and most of the fixtures carried out for mid/end January dates for fronthaul. A 2013 built 82,000 dwt got $17,250/d basis dely retro Mangalore for a trip via ECSAm and redely Spore/Jpn range.
The positive sentiment seen the previous week continued till Wednesday, then at the end of the week, with the Atlantic market starting to be weaker, also the Pacific slowed down. During the first part of the week demand was quite good and rates followed; a nice Kamsarmax was reported at $22,000/d basis dely S China for a W Australia to China with iron ore, and a standard Australia RV with coal paid in the $19/20,000/d basis dely dop N China/Jpn/S Korea range. On Thursday a 2013 Kamsarmax was reported in the midteens for an Australia RV with coal. NoPac was fixed at the beginning of the week in the $18/20,000/d basis Panamax with dely Japan, then, towards the end of the week Oldendorff was reported to have taken a Panamax in the $15,000/d level basis dely Kashima. Indonesia followed the same path from $18/19,000/d to $15/16,000/d basis dely S China. Bad weather in Yellow Sea region is affecting ports line up creating delays, this situation might have a positive impact on rates shortening the tonnage list.
Handy (Far East/Pacific)
After a positive week, approaching the weekend rates started to soften again both on Handies and on larger units. A 58,000 dwt with dely Indonesia was reported at $15,500/d for a trip via Indonesia to China, a smaller Supramax with dely N China was done at $12,000/d for a trip via Indonesia to China and a 57,000 dwt with dely Vietnam took $12,000/d for a trip via Indonesia to Cambodia. With West direction, a 57,000 dwt with dely S China was fixed at $14,000/d for a trip via Indonesia to India with coal and a 63,000 dwt with dely N China took $12,400/d for a trip via Indonesia to WCI. On Handies, a 28,000 dwt with dely Japan was done at $10,000/d for a trip to SE Asia.
Handy (North Europe/Black Sea/Mediterranean)
The market was still very strong with lots of fixtures recorded for ContMed and Baltic-East. A 57,000 dwt was reported at $33,000/d for a scrap trip from ARAG to Turkey, a 64,000 dwt open Rotterdam was reported at $35,000/d dop with grains from Baltic to SE Asia and a 61,000 dwt achieved $36,500/d with fertilizers from Scandinavia to China. As far as Russia is concerned, a 58,000 dwt open Gdansk got $38,500/d dop for a coal trade to India and redely Port Said and a 58,000 dwt open Auginish achieved $48,000/d dop from Russia Baltic to India.
The market trend remained positive, although the momentum seemed to weaken a little, mostly for Supramaxes. The route towards the USG was particularly strong, which seems rather strange as USG has been climbing during the last month or so. In any case, Handies did not seem to suffer from the slight slowdown suffered by some routes of the supramaxes, at least so far. For January a decrease is expected, but operators remain cautious in booking forward cargoes anyway. 35,000 dwt units CrossMed were asking rates around $17,000/d basis dely passing Canakkale, fixing most probably in the $16,000s/d, not many fixtures were reported. A fixture heard at the end of the week reported a 37,000 dwt achieving $17,000/d for a BSea to W Med, but was not reconfirmed yet. Owners preferred USG destinations which could easily pay $17/18,000/d. As said, Supramax slowed to $18/19,000/d level on CrossMed and on trips to Cont. TA trips to ECSAm were assessed in the mid-teens on Handies while Supramax rates increased to $19,000/d to USG. The trip East was also increasing to 29/30,000/d on Supramax and mid $20,000s/d on Handies.
Handy (USA/N.Atlantic/Lakes/S.America)
The market in USG was still pushing with a shorter tonnage list compared to the previous week, but the number of ballasters was increasing. Grains to Spore/Jpn range on Ultramax tonnage were fixing at $52,000/d for min 70 days duration and petcoke to India was rated $65,000/d on the same size. On TransAtlantic an Ultramax was fixed at $52,000/d to W Med, int. Morocco) and a clean cargo to UK was fixed at $38,000/d. On Handies, at the beginning of the week a petcoke cargo to Med was fixed on a 39,000 dwt at $31,5000/d, and at the end of the week a grain cargo to E Med was covered by a 35,000 dwt at $24,000/d.
The market firmed, but rates are still far from those in the USG. Very little activity was officially reported, a 57,000 dwt was fixed at $30,000/d basis dely N Brazil for a tct to Cont/Med. On fronthaul a 63,000 dwt was fixed at $17,500/d + 750,000 gbb to Spore/Jpn range with grains. On Handies, little info were available except a 35,000 dwt traded in the mid-teens basis dely aps ECSAm to Cont/Med with grains.
Handy (Indian Ocean/South Africa)
Rates kept increasing on most routes during the week. On the limestone trade from MEG to WCI, a Dolphin57 was fixed basis dely UAE port around $16,000/d. A 57,000 dwt from WCI to F East got $17,000/d and a 61,000 dwt achieved $19,000/d to China. A 63,500 dwt was reported at similar levels. Rates improved from ECI during the week, eco 56,000 dwt vessels were heard fixing around $17/17,500/d for trips to China with iron ore in bulk. Towards the end the week a spot 58,000 dwt was heard to have fixed $16,000/d basis dely dop Chittagong for a similar trade. Rates were a bit mixed from S Africa, an Imabari63 open Pakistan was rumoured at $20,000/d dop for a trip via S Africa to Pakistan/india range. A 61,000 dwt was heard to have fixed $25,000/d + 250,000 gbb basis dely S Africa for a similar trip. Then a 61,000 dwt was rumoured to have fixed $19,000/d + 190,000 gbb with coal to Pakistan. A 58,000 dwt was fixed at $19,000/d + 210,000 gbb for a trip to F East.
Banchero Costa and Co Spa
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