Weekly detailed analysis of world shipping freight markets for all major routes for January 1 – January 7, 2024.
Capesize (Atlantic and Pacific)
The market for the Capesize segment ended 2023 on a high note in view of a strong demand for the first month of 2024 and although the first weeks of the new year have been marked by limited activity and challenges, the dry bulk market for Capesizes started on a positive note, with strong fixtures and maintaining a bullish sentiment. In the Pacific, BHP fixed three TBN vessels to load their cargoes of 160,000 mt +/- 10% iron ore from Port Hedland to Qingdao; two shipments with laydays 20/22 January at freight rates of $9.65 and $9.85 /mt and the third shipment with laydays 21/23 January at $9.95/mt. Rio Tinto fixed a TBN vessel to load its cargo of 170,000 mt +/- 10% iron ore from Dampier to Qingdao, laydays 22/24 January at $9.90/mt. Vale fixed a TBN vessel to load its cargo of 170,000 mt +/- 10% iron ore from TRMT to Son Duong, laydays 14/16 January at a freight rate of $6.90/mt. Pacbulk fixed a TBN vessel to load a cargo of 170,000 mt +/- 10% from Whyalla to Qingdao, laydays 26/31 January at a freight rate sub $14.00 /mt. Bulk Asia fixed the MV Cape Horn (181,725 dwt | 2010 built) basis delivery Zhangjagang, 4/7 January for one timecharter trip via West Australia to China at $26,000/d. In the Atlantic basin, Vale fixed a couple of vessels to load its cargoes of 170,000mt +/- 10% iron ore from Tubarão to Qingdao, laydays 15/30 January (with ST Shipping linked to one of the stems) at freight levels in the high $29s/mt. Vale also fixed the MV Barbarian Honor (180,091 dwt | 2011 built) to load its cargo of 170,000 mt +/- 10% from Tubarão to Qingdao, laydays 30 January / 2 February at $29.80/mt. Trafigura fixed a newcastlemax and a standard cape to load cargoes of 190,000 mt +/- 10% iron ore from Sudeste to China, with the standard cape giving an ETA on the 12th and the newcastlemax with an ETA 25th January and the freight rates in the region of high $29s/mt. TKSE fixed the MV Berge Torre (175,935 dwt | 2011 built) to load a cargo of 180,000 mt +/- 10% iron ore from Seven Islands to Rotterdam, laydays 20/29 January in the low/mid $14s/mt. From South Africa, Ore and Metal fixed a Richland TBN vessel to load a cargo of 170,000 mt +/- 10% iron ore from Saldanha Bay to Qingdao, laydays 21/25 January at $19.37/mt.
Panamax (Atlantic and Pacific)
Similary to the closing stages of 2023, the first week of the year witnessed a pretty slow start with rates declining across most regions due to the holidays, a rush of fixtures from previous weeks and weakening demand. The most affected areas were the Northern Atlantic ones where P1A_82 and P2A_82 lost approximately $3,500/d and $3,000/d respectively. A 2016 built PostPanamax got $24,000/d dop Funchal for a trip via USG and redely PMO. From S America, not a lot of activity was recorded, P6_82 closed the week at $15,182/d with rates dropping further towards the closing stages of the week. A 2017 built Kamsarmax was fixed around $18,000/d retro Haldia for a trip via S America redely Spore/Japan range.
The market had a rough start of the year with rates rapidly decreasing as a result of lacking demand. Rates went as low as $10/11,000/d levels for Pacific RV. Indonesia was fixed around $10,000/d on Panamax open S China and while Kamsarmax were fixing $12/13,000/d for Australia-China depending on delivery. A number of vessels were also sent in ballast to Spore and ECSAm.
Handy (Far East/Pacific)
The market in the Pacific basin softened. A 53,000 dwt was fixed basis dely S China at $8,500/d for a trip via Indo to S China with coal. A 56,000 dwt was fixed at $8,500/d basis dely N China for a NoPac RV to Spore/Jpn. No fixtures were reported on Handies, but a Handy was mentioned at $9,200/d basis dely S China for a trip via Indo to China.
Handy (North Europe/Black Sea/Mediterranean)
Much lower rates than in December with low demand and tonnage oversupply. A couple of Handies were fixed between $11/12,500/d for trips with grains to Morocco whilst the Supramax scrap trade was down to $18,500/d.
As expected, the holiday period pushed rates downwards. There is certainly a shortage of spot cargoes, but also the expectations for the first months of the year remain rather low, although the general mood remain uncertain. The leading rate for 35,000 dwt for CrossMed trips was around $11/11,500/d basis dely passing Canakkale, the trip to Cont was slightly higher around $12,000/d since the destination is less appealing during this period of the year, despite the market is strong there with few vessels in the market. USG levels decreased to $12/12,500/d while the trip from Med to ECSAm was at $10/11,000/d. Larger units followed the same trend fixing $13/14,000/d for CrossMed, $14/14,500/d for trips to USG and $12,000/d to ECSAm. The trip East for Supramax tonnage was around $22,000/d while Handies were slightly over the mid-teens, but no many fixtures were reported on this route.
Handy (USA/N.Atlantic/Lakes/S.America)
Rates has been shrinking with a longer tonnage list and not enough demand. The most traded route was TA due to the issues affecting the Panama and the Suez canals and trips to F East mainly going via the Cape Of Good Hope. Grains to Spore/Japan range on Ultramax were fixed around $32,500/d and around $27,500/d on Supramax. On TA an Ultramax was fixed at $26,000/d to Egypt with coal and a Supramax trip to Croatia was done at $30,500/d again with coal. On Handies a 40,000 dwt was fixed at $25,000/d to Morocco with coal and a grain cargo to Spain was done at $20,500/d on 38,000 dwt.
Quiet market both on Handy and Supramax sizes. A 34,000 dwt was fixed basis dely N Brazil at $21,500/d for a trip to Caribbs and a another 34,000 dwt built 2015 was reported at $22,500/d basis dely Recalada for a trip with grains redely N Brazil. A 42,000 dwt was fixed basis dely aps River Plate for a trip to Venezuela at $22,000/d. No fixtures were reported for larger sizes, but a Supramax was traded at $18,000/d + 180,000 gbb basis dely aps ECSAm for a trip with minerals to Spore/Jpn range int. China, but with no confirmation so far.
Handy (Indian Ocean/South Africa)
Rates in the Indian Ocean were coming off. Early in the week a 64,000 dwt was reported at $21,000/d basis dely dop WCI to China, during the week a similar unit was fixed at $20,000/d basis same dely with limestone via Oman to Bangladesh. A 58,000 dwt was rumored to around $22,000/d basis dely UAE for a trip via UAE to Bangladesh. From ECI, rates seems to have come off even more: a 63,000 dwt open ECi was reported around $16,000/d for a trip to China and a 56,000 dwt was fixed around $13,000/d for similar business. Rates also seemed to ease off from S Africa from where a 58,000 dwt was fixed at $18,000/d + 180,000 gbb for a trip to Red Sea with coal in bulk. On trips to SE Asia a 53,000 dwt was reported at $16,500/d aps Maputo + 165,000 gbb some -$2,500/d and - $25,000 gbb compared to the previous week. A 55,000 dwt was heard at $16,000/d + 160,000 gbb to Pakistan.
Banchero Costa and Co Spa
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