Weekly detailed analysis of world shipping freight markets for all major routes for January 29 – February 5, 2024.
Capesize (Atlantic and Pacific)
Another week of limited demand and activity in the Capesize market, although the week closed on a positive note with optimism overall. Reappearance of coal cargoes is being viewed as a positive development. In general, cargo volume remains at reasonable levels. On the period front Norden fixed the Hermina (176,389 dwt | 2012 built) delivery Fangcheng, 9/14 February for one-year timecharter period at $25,250/d and NYK fixed the MV Philadelphia (206,040 dwt | 2012 built) delivery Jingtang, 31 January/6 February for 14-16 months timecharter period at $22,500/d. In the Pacific, Rio Tinto fixed two TBN vessels for their cargoes of 170,000 mt +/- 10% iron ore from Dampier to Qingdao, laydays 15/17 February and 17/19 February, respectively at $7.95 and $8.40/mt. FMG fixed a TBN vessel for its cargo of 160,000 mt +/- 10 iron ore from Port Hedland to Qingdao, laydays 15/17 February at $8.40/mt. BHP fixed the MV Mount Song (180,242 dwt | 2010 built) to lift its cargo of 160,000 mt +/- 10% iron ore from Port Hedland to Qingdao, laydays 16/18 February at $7.90/mt. Coforce Shipping fixed a TBN vessel to load a cargo of 170,000 mt +/- 10% iron ore from Dampier to Qingdao, laycan 18/20 February at $8.40/mt. Simec fixed a Norden TBN vessel to load a cargo of 170,000 mt +/- 10% iron ore from Whyalla to Qingdao, laydays 5/11 March at $12.00/mt. Oldendorff fixed a TBN vessel for the Ningbo Tender, 130,000 mt +/- 10% coal from Newcastle to Liuheng, laydays 1/10 March at $12.00/mt. Pacbulk fixed a TBN vessel for a cargo of 160,000 mt +/- 10% coal from RBCT to Qingdao, laydays 25/29 February at $14.50/mt. In the Atlantic basin, Element fixed the MV Georgina Hope (182,242 dwt | 2010 built) for a cargo of 180,000 mt +/- 10% iron ore from Tubarão to Qingdao, laycan 22/25 February at $21.90/mt. Costamare fixed the MV Maharaj (209,472 dwt | 2015 built) to lift a cargo of 190,000 mt +/- 10% iron ore from Tubarão to Qingdao, laycan 20/25 February at $21.40/mt. Vitol fixed a TBN vessel for 170,000 mt +/- 10% iron ore from Tubarão option West Africa to China, laycan 20/29 February at $21.12/mt. CSE fixed the MV Hanna Oldendorff (208,942 dwt | 2017 built) for 190,000 mt +/- 10% iron ore from Seven Islands to Luoyu, laycan 21/25 February at $29.00/mt. Rio Tinto fixed a ST Shipping TBN vessel to lift a stem of 160,000 mt +/- 10% iron ore from Seven Islands to El Dekheila, laycan 20/29 February at $14.70/mt. Out of South Africa, Pacbulk fixed a TBN vessel to load a cargo of 160,000 mt +/- 10% coal from Richards Bay Coal Terminal to Qingdao, laydays 25/29 February at $14.50/mt.
Panamax (Atlantic and Pacific)
The first week of February was quite a hit for the Panamax Atlantic market with rates rapidly falling due to lacking demand, increasing tonnage count and what we can define as a “rush to fix” from some spottish tonnage. Differently from what many expected after the exciting closing stages of 2023 and opening of 2024, market seems to have become kind of immune to Red Sea situation (from a rates point of view), i.e. we are starting to witness multiple Spore ballasters becoming more competitive than Gib/Cont vessels for long Fronthauls. In addition, P2A_82 closed the week with a -$1,000/d loss with not a lot of fixtures being reported basis dop Gib/Cont. On the other hand, on aps basis a 2019 scrubber fitted Kamsarmax was fixed for $18,750/d + 875,000 gbb basis aps Skaw/Pass for a trip to F East with grains. S American market was sleepy most of the week with rates losing - $2,000/d and P6 settling for $14,000/d and with numerous market players seeing bki levels dropping even closer to $13,000/d. For example, a 2020 Kamsarmax got $17,750/d + 775,000 gbb for a trip via ECSAm to Spore/Jpn range with grains. Some S American TA RV fixtures were recorded and a 2011 Panamax got $18,000/d bki equivalent for a trip via Santos to Skaw/Gib with grains.
The Pacific market was on a downward trend: on the one hand we saw a very poor cargo count, on the other hand a long tonnage list, the result were consistently lower rates. A standard Indo-S China coal cargo was assessed in the $7/8,000/d level basis dely S China subject to vessel specs and opening port. From Australia a nice Kamsarmax was fixed at $12,000/d basis dely Zhoushan for a coal trade from EC Australia to India and a standard EC Australia-China/Japan were done around $9/10,000/d basis dely N China on Kamsarmax tonnage. Only a few grain demand in NoPac fixed around $9/10,000/d on Panamax and $11/12,000/d on Kamsarmax.
Handy (Far East/Pacific)
A slightly negative market on all sizes. A 58,000 dwt with dely Thailand was reported at $10,800/d for a trip via Indonesia to China, a 56,000 dwt with same delivery was done at $2,000/d less for the same destination. A 56,000 dwt with dely S China agreed $7,000/d for a trip via Indonesia to Cambodia and a 61,000 dwt with dely S Korea was fixed at $12,000/d for a trip via NoPac to Chittagong with grains.
Handy (North Europe/Black Sea/Mediterranean)
Positive sentiment for all sizes on prompt positions due to stronger demand. Supramax were fixed around $17,000/d with scrap to E Med whilst 38,000 dwt were getting $16,000/d; a 35,000 dwt achieved $15,000/d on the same route. ECSAm was a tick below $10,000/d and W Med around $13,000/d.
A slow week with little demand and a rather short tonnage list. In many cases Operators preferred to use their own tonnage on their cargoes, but not before testing the market which recorded very high numbers, this brought a breath of positivity greater than what existed in practice. In any case, if we had to give a sign to the market trend, we would choose the positive one, but we found a certain general stagnation. The rate for 35,000 dwt for CrossMed improved to $11,000/d, sometimes $11,500/d, basis dely passing Canakkale. The trip to Cont remained around $12,000/d. Supramaxes were fixing around $14,000/d CrossMed, recording little change compared to the previous week. On Handies the TA improved a tick to USG to $12,000/d and remained around $10,000/d to ECSAm. For Supramax the trip to USG remained ard $13,000/d while ECSAm was done at $11/11,500/d. The trips East recorded rates around $26,500/d on Supramaxes and around $20,000/d on Handies, but no fixtures were officially reported.
Handy (USA/N.Atlantic/Lakes/S.America)
The market was slightly on the rise; the tonnage list significantly shortened while demand was increasing, especially for Handies. The most favoured routes were Fronthaul and CrossCaribbs for larger units and TransAtlantic for Handies. The grains trade to Spore/Japan range was fixed on Supramax tonnage at $26,000/d while Ultramaxes were covered at $28.000/d. The trip to India with petcoke was done at $26,500/d on an Ultramax. On TransAtlantic Ultramaxes were fixed at $23,000/d to E Med with coal and at $19,250/d to Italy with grains. Trip to Brazil with petcoke was fixed at $19,000/d on Ultramax. On Handies, grains to Ireland were covered at $13,000/d on a 32,000 dwt and a coal cargo to Morocco was done at $15,000/d on a 38,000 dwt.
An active market on all sizes. Not a lot of fixtures were reported on Handies, but a modern 35,000 dwt was rumored at $16,000/d basis dely aps Recalada for a trip to Cont/Med. No rumors on rates for fronthaul and the rate was assessed around $20/21,000/d basis dely aps Recalada on a modern 38,000 dwt basis redely Spore/Japan range. Fronthaul was around $18,000/d + 800,000 gbb on nice Ultramax with grains. An Ultramax 62,000 dwt, Oshima type, was evaluated $25,000/d basis dely Recalada to Cont/Med with grains.
Handy (Indian Ocean/South Africa)
Rates in the indian ocean remained strong for most areas. In pg-wci range, the rate were much similar to the ones from week before. 55k open PG was fixed aps UAE at usd 21k for trip to bangladesh with aggregates. Another 56k dwt vsl open pak-wci range was also rumoured to have fixed around 21k bss aps loadport in uae for similar requirement. Going to feast direction with salt in bulk was still paying premium from wci even though numbers were softening towards end of the week. A 56k dwt open wci got fixed at 21k dop early in the week, as compared to a 58k dwt vsl fetching around 19k dop wci for similar route. Towards tail end of the week one 61k dwt vsl was heard to have fixed around 21k levels aps loadport in wci for such trip. Rates seemed to have slipped a bit from ECI, with 56k dwt ones being rumoured to get around 13k daily dlosp eci-bangladesh for trip to china via eci with iron ore. 60k dwt ones were fetching around 18500 for such trips. Rates remained positive from south africa, vessels were paid premium for going to eci -feast range. 63k dwt vessels were being fixed around 19500 aps + 195k gbb for trip to pak-wci, and 22k aps + 220k gbb for going to feast. One 63k dwt vsl was heard to have fixed the highest of the week at 23k aps safr + 230k gbb for trip to feast.
Banchero Costa and Co Spa
E-Posta: research@bancosta.it
Internet: www.bancosta.it