Weekly detailed analysis of world shipping freight markets for all major routes for January 15 – January 22, 2024.
Capesize (Atlantic and Pacific)
After starting the week with downward pressure and fixtures concluded at lower rates, the market rebounded towards the end of the week with improvements in rates and market sentiment. The week ended on a positive note in both basins. The BCI 5TC route recorded a slight increase from the previous week, closing at $18,608/d. Despite the minor increase, the downturn could persist during the coming weeks due to seasonal factors, including the forthcoming Chinese New Year Holidays. In Pacific, Rio Tinto fixed 4 x TBN vessels to load their 170,000 mt +/- 10% iron ore cargoes from Dampier to Qingdao; one shipment with laydays 1/3 February at $7.75/mt, 2 shipments with laydays 2/4 February at $7.90/mt and another shipment with laydays 3/5 February at $8.75/mt. BHP fixed 3 x TBN vessels to load their 160,000 mt +/- 10% iron ore cargoes from Port Hedland to Qingdao; one shipment with laydays 2/4 February at $7.80/mt and two shipments with laydays 3/5 February at freight rates of $8.00 and $8.15/mt. CCS fixed the MV Dong Yuan (176,193 dwt | 2005 built) to load a cargo of 130,000 mt +/- 10% coal from Newcastle to Zhanjiang plus Taicang, laydays 11/20 February at a freight rate in the low $13s/mt. Libra fixed a TBN vessel to lift a cargo of 150,000 mt +/- 10% coal from Indonesia to India, laydays 11/15 February at $5.25/mt. In the Atlantic basin, Refined Success fixed a TBN vessel to load 170,000mt +/- 10% iron ore from Tubarão to Qingdao with the 11th February cancelling at $24.50/mt. Koch fixed the MV Golden Confidence (207,988 dwt | 2020 built) for a cargo of 185,000mt +/- 10% iron ore from Tubarão to Qingdao, laydays 1/10 February at $22.10/mt. Pacific Bulk fixed the MV Seawind (179,656 dwt | 2015 built) for 170,000mt +/- 10% iron ore from Tubarão to Qingdao, 10th February cancelling at $22.35/mt. ST Shipping fixed the MV Frontier Jasmine (182,130 dwt | 2022 built) for 160,000mt +/- 10% coal from Bolivar to Zhoushan, end January/early February laycan at $30.25/mt. From South Africa, early in the week, Assmang Ore & Metal fixed a Classic TBN vessel to lift a cargo of 170,000mt +/- 10% iron ore from Saldanha Bay to Qingdao, for laydays 1/5 February at a freight rate of $14.50/mt. Later, they also fixed another TBN vessel to lift a cargo of 170,000 mt +/- 10% iron ore from Saldanha Bay to Dangjin in South Korea, laydays 3- 7 February at $13.95/mt and a Classic TBN to load a cargo of 170,000mt +/- 10% iron ore from Saldanha Bay to Qingdao, laydays 9/13 February at $16.44/mt. Welhunt fixed a Golden Ocean TBN vessel to load a cargo of 150,000mt +/- 10% coal from RBCT to Hon Mieu plus Campha, laydays 10/19 February at $15.50/mt.
Panamax (Atlantic and Pacific)
Despite a slow start, the Atlantic Panamax market lived a healthy week with rates coming back to life, especially for S America where activity has seen a boost in the closing stages of the week. From a broader standpoint, the whole market is strongly influenced by the ongoing situation in the Red Sea with direct consequences on the routing and tonnage count. Both Northern and Southern regions of the Atlantic have been characterized by grain fixtures, with a spike in demand from USG, North and East Coast South America. P1A_82 closed the week with a positive delta of $1,000/d, but not too many fixtures have been recorded on such route – for instance a major grain house fixed a modern Kamsarmax for a trip via NCSAm at $15,000/d basis redely Skaw/Gib. P2A_82 also benefitted the decreasing tonnage count and the situation in the Red Sea, with owners’ offers reaching up to high $20,000s/d from Gib for long Fronthauls. Many vessels were ballasting from Spore have been preferred for such trades (especially USG grains) with rates averaging mid/mid high $18,000/d + 850,000 gbb for nice Kamsarmax tonnage. Activity in ECSAm witnessed a spike in activity on Thursday when a rush to fix led to about 20 units fixed for ECSAm-F East in a single day - P6 closed the week at $15,275/d.
The market in F East started slowly with quick Indo RV fixed at $6,000/d basis Panamax tonnage dely S China. At the end of the week similar trips were fixed at $4,000/d, at these levels many owners were tempted to ballast their tonnage towards ECSAm. On NoPac RV a 2014 built Panamax was fixed at $8,000/d basis dely Tianjin, on Friday a 2014 unit got $10,250/d for a similar trip. Demand was limited to India and Panamax tonnage was evaluated around $4,000/d basis dely S China. Supported by firmer FFAs, period appetite remained healthy and despite wide gaps between bid and offer some deals were concluded and a very modern Kamsarmax got BPI +111.5%.
Handy (Far East/Pacific)
The market remained fairly stable with rates on the most representative routes almost unchanged. A 55,000 dwt with dely N China was reported at $8,000/d for a trip via Philippines to China with nickel ore and a 52,000 dwt with same dely achieved $7,250/d for a trip to SE Asia. A 61,000 dwt with dely Vietnam took $11,000/d for a trip to Chittagong, a 58,000 dwt with dely N China was done at $8,500/d for a trip via Indonesia to EC India and a 58,000 dwt with dely Vietnam got $10,000/d for a trip to Bangladesh with clinker. On Handies, a 31,000 dwt with dely mid-China was reported to be fixed at $10,000/d for a trip via China to EC India.
Handy (North Europe/Black Sea/Mediterranean)
Rates remained on a negative trend for Supramax tonnage due to limited demand and a long tonnage list. The trip to USG was assessed around $11,000/d basis 58,000 dwt tonnage. Handysize rates were slightly increasing and a 36,000 dwt was rumored fixed for a trip to E Med with scrap in the $14,000s/d while the trip to USG was paying around $10,000/d basis 38,000 dwt tonnage.
Another very quiet week, however the last few days showed some improvements affecting marked sentiment slightly. FFAs turned green as well for a couple of days. The rate for 35,000 dwt tonnage for CrossMed trips improved to $9/9,500/d basis dely passing Canakkale, the trip to Continent increased to $10/10,500/d, a thousand dollars higher than the previous week. TAs increased thanks to stronger demand coming mainly from cement cargoes, which were fixed up to $13,500/d from E Med ports, in any case the average rate remains below $10,000/d to USG and around $8/8,500/d to ECSAm. Supramax tonnage was fixing around $12/13,000/d CrossMed, $11,500/12,000/d to USG and $10,000/d to ECSAm. The trips East were increasing again, due to the situation in Red Sea, to $21,500/22,000/d for Tess58 types while Handies seemed to be a tick above the mid-teens, up to $17/17,500/d in for the highest fixtures.
Handy (USA/N.Atlantic/Lakes/S.America)
Perhaps some slight improvements were noticeable despite rates decreased further overall: it appears the market started stabilizing towards the end of the week. The tonnage list decreased during the week and Owners were considering again fronthauls. The grains trade to Spore/Jpn range was fixed at $22,500/d on Ultramax tonnage and $18,000/d on Supramax. Petcoke to India was fixed at $27,500/d on Ultramaxes via Cape of Good Hope. On TransAtlantic, an Ultramax was fixed at $19,500/d to Cont with woodpellets and a trip to Puerto Quetzal with petcoke was covered by an Ultramax at $30,000/d. On Handies a grain cargo to Turkey was done at $18,000/d on a 35,000 dwt, while a 37,000 dwt was fixed to Israel at $20,000/d.
Rates remained flat during the week on all sizes. On Handies, a 38,000 dwt was fixed at $14,900/d aps Rio de Janeiro/Recalada range for a tct with grains to Skaw/Passero range. A 37,000 dwt was fixed basis dely Argentina for a tct to Algeria with grains at $15,000/d, the rates was slightly higher because the vessel was fixed basis dely upriver. No fixtures were heard on Supramax and Ultramax tonnage. A 58,000 dwt was valued around $11,000/d basis dely W Africa for a tct via ECSAm to Cont/Med range. On the Fronthaul a Tess58 was estimated around $18,000/d basis dely W Africa for a tct to Spore/Jpn range to N China with grains.
Handy (Indian Ocean/South Africa)
The market in MEG/WCI have been following overall the trend from last week with similar levels and only minor adjustments. A cargo of petcoke was booked on a tce of $17,000/d basis dely dop MEG on a Supramax via MEG to ECI. A 58,000 dwt was fixed around $15,000/d basis dely dop MEG to China at $17,000/day. A 57,000 dwt got mid/high teens basis dely MEG for WCI and option ECI at very low $20,000s/d with fertilizers. A 63,000 dwt was rumoured at $20,000/d basis dely dop WCI for trip with salt via WCI to China. The market in ECI recorded some negative adjustments with a 56,000 dwt fixed in the low/mid-teens for a trip to China and a 63,000 dwt was rumored fixed slightly above $15,000/d for a trip to China. From S Africa rates have been steadily sliding and a 55,000 dwt was reported at $16,000/d + 160,000 gbb for a trip via to India with coal while a 61,000 dwt achieved $20,000/d + 200,000 gbb for a trip to China with manganese ore.
Banchero Costa and Co Spa
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