Weekly detailed analysis of world shipping freight markets for all major routes for January 22 – January 29, 2024.
Capesize (Atlantic and Pacific)
The Capesize market was stagnant with relatively limited activity in both basins, rates have gone down with the general market sentiment still negative. In the Pacific, despite miners were in the market, rates were not representative and in the Atlantic there were also challenges with low activity. On the period front Norden fixed the CSC Leader (208,826 dwt - 2019 built non-scrubber) basis delivery Taiwan end January/early February for about 1 year TC period at $26,500/d. In the Pacific, Rio Tinto fixed one TBN vessel for their cargo of 170,000 mt +/- 10% and one for their cargo of 190,000 mt +/- 10% iron ore from Dampier to Qingdao, both for laydays 9/11 February, respectively at $8.00/mt and $7.80/mt. Also fixed a TBN vessel for their cargo of 170,000mt +/- 10% and another one to load 190,000mt +/- 10% iron ore from Dampier to Qingdao, both for laydays 10/12 February, respectively at $7.90/mt and $8.05/mt. BHP fixed a TBN vessel to lift their cargo of 160,000 mt +/- 10% iron ore from Port Hedland to Qingdao, laydays 7/9 February at slightly below $8.00/mt. Oldendorff fixed a K-Line TBN vessel to load a cargo of 130,000 mt +/- 10% coal from Newcastle to Mailiao, laydays 5/14 February at $10.50/mt. In the Atlantic basin, Mercuria fixed the MV Captain J. Papadakis (179,558 dwt - 2011 built) to load a stem of 170,000 mt +/- 10% iron ore from Tubarão to Qingdao with an ETA on the 16th February at a freight rate of $21.50/mt. Solebay fixed a LDC TBN vessel to load a cargo of 170,000 mt +/- 10% iron ore from Tubarão to Qingdao, laydays 1/15 March at $21.00/mt. Vale fixed an Oldendorff TBN vessel for its cargo of minimum/maximum 150,000 mt iron ore from Tubarão to Misurata, laydays 1/8 February at $20.85/mt. Rio Tinto fixed a TBN vessel to load its cargo of 170,000 mt +/- 10% iron ore from Seven Islands to Oita, laydays 17/23 February at $31.00/mt. Erdemir fixed a TBN vessel to load a cargo of 150,000 mt +/- 10% iron ore from Narvik to Erdermir, laydays 14/23 February at $11.50/mt. Five Ocean fixed the MV Pharlap (179,276 dwt | 2011 built) basis delivery Rotterdam 30 January - 2 February for one timecharter trip via Port Cartier to the Far East at $41,500/d. From South Africa, TS Global fixed the MV Frontier Asuka (181,370 dwt - 2014 built) to load a cargo of 160,000mt +/- 10% iron ore from Saldanha Bay to Port Talbot, laydays 20/24 February at $5.70/mt. Assmang Ore & Metal fixed a Classic vessel to lift 170,000 mt +/- 10% iron ore from Saldanha Bay to Qingdao, laydays 9-13 February at $16.44/mt.
Panamax (Atlantic and Pacific)
A busy week for the Panamax market with rates improving on most routes due to healthy grains demand from Southern Atlantic, in particular, but also from the Northern regions. Again, stronger activity was recorded for P1A_82 with the week closing with a positive +$2,000/d, to $16,500/d. A couple of fixtures from W Africa were reported with good returns compared to P1 average due to shorter duration, an iron ore cargo was fixed for an equivalent of $20,500/d on a standard Kamsarmax for a trip via Buchanan to Continent. Similarly, P2A_82 benefitted from improving grains demand from SE Asia and F East and a 2015 Kamsarmax was fixed by a major grain house for a trip via NCSAm to Spore/Jpn range with grains at $24,000/d basis dely dop Gib. However, the real market winner last week was ECSAm with a lot of liquidity and activity covering most of the stems for beg/mid-February dates, and P6 that increased on average by $1,000/d to $16,450/d despite a slight adjustment on Friday.
The Pacific basin generated returns which were lower than P6 and that has been a significant contributor for owner to send their vessels in ballast. Generally, NoPac grains and Australia coal was fixed around $11/12,000/d levels for BKI specs vessels. Indonesia was softer around $7/8,000/d for overaged Panamax tonnage.
Handy (Far East/Pacific)
The market in F East remained stable for another week. A 63,000 dwt with dely Spore was reported to at $13,500/d for a trip via Australia to Spore/Jpn range, a 58,000 dwt with dely mid-China was done at $11,000/d for a trip via E Australia to Japan and a smaller Supramax with the same delivery took $9,000/d for a trip via Indonesia to China with coal. On period, a 61,000 dwt with dely S China was reported at $15,500/d for 5/7 months, redely worldwide.
Handy (North Europe/Black Sea/Mediterranean)
Owners’ sentiment improved thanks to a few fresh February cargoes which were quickly covered causing a lack of tonnage. An ice classed 30,000 dwt was fixed from Algeria via Kotka to ECSAm at $10,000/d. A 38,000 dwt was fixed at $16,000/d for a tct with coal basis dely dop Amsterdam via UK redely Morocco. A 32,000 dwt was fixed via Ust Luga for a trip redely Itaqui around $20,000/d, a 37,000 dwt was fixed with fertilizers via Antwerp to Tampa at $10,500/d. A 37,000 dwt achieved $19,250/d passing Skaw for a tct via Baltic to Bangladesh with fertilizers to S Africa.
The week was certainly characterized by positive sentiment. The plus sign was seen on all routes thanks to higher rates fixed on forward cargoes, from March onwards, by cargoes to the USG and towards S America, but also the situation in the Red Sea which is certainly contributing together with the war in the Middle East and in Ukraine to maintain the highest levels compared to the normal trend of this period of the year. The rate for 35,000 dwt for CrossMed trips improved to $10,500/d basis dely passing Canakkale, the trip to Cont was fixed close to $11,000/d. The TA was still fixing around $11/11,500/d for trips to USG and around $9,500/10,000/d to ECSAm destinations. But the rates were sensibly higher if cargo loaded was cement also considering the high Iloch amounts asked by owners. Supramaxes were fixing $14,000/d for CrossMed, around $13,000/d for trips to USG and $11/11,500/d to ECSAm. The trips to F East recorded rates around $26,000/d on Supramaxes tonnage and closer to $20,000/d for Handies.
Handy (USA/N.Atlantic/Lakes/S.America)
The market remained fairly stable with a constant flow of cargoes and the tonnage list that did not change much. Fronthaul was one of the preferred routes on Ultramax tonnage and increasing rates were spotted towards the end of the week. At the beginning of the week grains to Spore/Japan range on Ultramax were fixed around $24,000/d, at the end $27,500/d was done. Petcoke to India on Ultramax was done at $25,750/d. Owners, on TransAtlantic, considered more CrossCaribbs routes than Continent destinations: the grains trade was fixed at $16,000/d on Supramax and at $17,000/d on Ultramax. A trips to Cont with petcoke was covered at $16,000/d on a Supramax. On Handies an CrossGulf trip with grains was fixed at $15,000/d on a 34,000 dwt and a 39,000 dwt was fixed at $15,500/d to UKC with petcoke.
A firm market during the week. A lot of fixtures were reported, on Ultramaxes mainly. A 63,000 dwt built 2019 was fixed at $18,000/d + 800,000 gbb basis dely aps ECSAm for a trip with grains, redely PMO/Jpn range, intention Chittagong. A 61,000 dwt built 2019 was fixed bss dely Santos for a trip redely SE Asia with grains at $17,400 + 740,000 gbb. On Handies, a 35,000 dwt was fixed in the mid/hight teens basis dely aps for a trip to Cont/Med with grains, but no further details were reported yet.
Handy (Indian Ocean/South Africa)
Snapping the trend from previous weeks, the market improved overall in the Indian Ocean. Early in the week a Tess58 was fixed basis dely Fujairah around $17,500/d levels for a trip to Bangladesh with aggregates. A similar trip on a Dolphin57 was fixed basis dop WCI at $18,000/d at the end of the week. By mid-week 2 Ultramax vessels were rumored fixed basis dely dop UAE for trips to Bangladesh with aggregates at $21,000/d level. A 63,000 dwt open WCI was reported on subs for a trip to China with salt at $23,000/d basis dely dop WCI. The market seemed to rise slightly from ECI as well with daily earnings rising round $1,500/2,000/d compared to previous week. A 53,000 dwt open Bangladesh was fixed at $14,500/d for a trip to China via ECI with iron ore. From S Africa, early in the week a 58,000 dwt was fixed at $16,500/d + 165,000 gbb with coal to Bangladesh, then a 61,000 dwt was fixed to Pakistan/WCI at $17,500 + 175,000 gbb.
Banchero Costa and Co Spa
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