Weekly detailed analysis of world shipping freight markets for all major routes for March 11– March 18, 2024.
Capesize (Atlantic and Pacific)
A mixed week with less activity in the Pacific and consequently rates declined. The Atlantic market was quite busy with a good number of fixtures, especially from S Brazil and W Africa to the Far East, helping market sentiment to remain positive. In the Pacific, Rio Tinto fixed three TBN vessels to load its cargoes of 170,000mt +/- 10% iron ore from Dampier to Qingdao, one shipment with laydays 28/30 March and two shipments with laydays 30 March/1 April, respectively at $12.95, $12.80, and $12.70/mt. The MV Cape Success (187882 dwt | 2015 built) fixed a cargo of 160,000- 170,000mt +/- 10% iron ore from West Coast Australia to Qingdao, laydays 1/5 April, at $12.75/mt. Simec fixed a Norden TBN vessel to load a stem of 170,000mt +/- 10% iron ore from Whyalla to Qingdao, laydays 9/15 April at $18.00/mt. Libra fixed a TBN vessel to load a cargo of 150,000mt +/- 10% coal from SE Kalimantan to Mundra, laydays 22/28 March at $10.90/mt. In the Atlantic basin Vale fixed at least seven vessels to load its cargoes of 170,000mt +/- 10% iron ore from Tubarão to Qingdao, for April dates, laydays 5/15 April onwards at $31.00/mt levels. Costamare fixed the MV Annabel L (180000 dwt | 2019 built) to lift a stem of 170,000mt +/-10% iron ore from Tubarão to Qingdao option West Africa, laydays 9/14 April at $31.75/mt. Treasure Boost Shipping fixed the MV Corinthian Phoenix (179223 dwt | 2009 built) and a TBN vessel to load its cargoes of 170,000mt +/- 10% iron ore from Freetown to Qingdao, laydays 30 March/3 April and 7/11 April, respectively at $29.85 and $29.50/mt. Qatar Steel fixed a TBN vessel to load its cargo of 150,000mt +/- 10% iron ore from Narvik to Mesaieed, laydays 25 March/5 April at $34.00/mt. Out of South Africa, there were reports of a Capesize coal fixture from RBCT to Gangavaram with March 21/30 laycan at very low $15s/mt.
Panamax (Atlantic and Pacific)
A busy week for the Panamax Atlantic market with what has turned out to be one of the strongest weekon-week hikes in a long time for Atlantic rates. The spike is largely consequential to the well-known disruptions (the Houthi situation in the Red Sea Area and the less recent Panama Canal draught in particular) which altogether altered routes and ballasters’ heading direction. A very short tonnage list for end March/first half of April along with a particularly healthy grain/mineral demand have been pushing rates to current levels. P1A_82 and P2A_82 both gained approximately $6,000/d. A 2012 built 82,000 dwt was reported fixed at $19,000/d basis dely dop Gib for a trip via NCSAm with grains redely Gib and a 2017 built Kamsarmax got $27,500/d + $700,000 gbb on aps basis for coal from US EC and redely India. ECSAm was the most active/healthy region with multiple grain cargoes and a very short tonnage list. The highlight of the week was a modern Kamsarmax fixing mid $20,000s/d basis dely retro India with a BKI equivalent on p6 of $23,600/d for ECSAm FH. The index averaged $23,000/d on Friday and rates appeared to continue rising in the coming weeks.
Rates in Pacific significantly improved thanks to the healthy influence from S America which is providing strong support to F East. Rates quickly increased over $20,000/d for Australia RV to China on a nice Kamsarmax with delivery mid/North China. Many owners were keen to fix repositioning cargoes to India in order to be closer to S America and so they were able to discount a bit for such direction. In Indonesia many fixtures were concluded around $17/18,000/d dop S China for an Indo RV and some nice specs units managed to achieved fixtures starting with 2. NoPac was relatively quiet with few fixtures reported in the mid/high teens basis dely S Korea/Jpn.
Handy (Far East/Pacific)
Once again, stable market in the area on all sizes. A 56,000 dwt with dely N China was reported at $13,500/d for a trip via Indonesia to China, a smaller Supramax with dely Thailand was done at the same rate for a trip via Indonesia to China and a 52,000 dwt with dely S China took $13,000/d for the same trip. A 56,000 dwt with dely Indo was fixed at $17,500/d for a trip via Indonesia to Thailand and a 61,000 dwt with dely Indonesia was rumored at $13,000/d for 60 days and $20,000/d balance for a trip to USG. On Handies no fixtures were reported.
Handy (North Europe/Black Sea/Mediterranean)
Rates kept improving for all sizes despite a longer list of spot tonnage. The main driver appeared to be the fertilizers trade from Russia. A 63,000 dwt from Ust Luga to Morocco was fixed at $25,000/d, a similar unit to ECSAm achieved $21,500/d, a 63,000 dwt with scrap from Ghent to Turkey achieved $17,000/d. A 56,000 dwt with fertilizers to USG was done at $18,000/d, a 55,000 dwt got $17,000/d. On Handies, a 37,000 dwt fixed a trip with petcoke to ECI at $18,500/d via COGH.
Despite a lack of prompt cargoes, the area managed to maintain the previous levels. Partially this can be explained by some strong congestion at the Bosphorus, which is holding back a lot of tonnage, apparently more than 300 ships waiting, contributes significantly to this market status together with the positive influence from all the other nearby areas. 35,000 dwt units CrossMed were still fixing $13,000/d basis delivery Canakkale, the trip to Cont was fixed at the same level. Supramaxes were fixing around $15/16,000/d on the same routes. On Handies TA trips were done at $14,000/d to USG and around $11,500/12,000/d to ECSAm. Supramax tonnage was fixing around $15,000/d to USG and $14,000/d to ECSAm. The increase is not significant, but the market considerably picked up on the other side of the Atlantic. Fronthauls were recording the highest increase: Supramaxes with dely passing Canakkale via BSea to Spore/Jpn increased to $27,500/d while Handies were fixing in the low $20,000s/d.
Handy (USA/N.Atlantic/Lakes/S.America)
Finally, the USG was back on its feet with increasing demand and freight rates increasing slightly. Fronthaul rates increased significantly on Friday. Grains to Spore/Japan range on Ultramax tonnage were covered at $24,000/d at the beginning of the week, at the end fixtures were at $27,500/d. On TransAtlantic, the petcoke trade to Turkey was done at $14,000/d on a Supramax and an Ultramax fixed a trip to WCCAm with grains at $25,000/d. On Handies the market was quite stable, a trip to UKC with woodpellets was covered at $11,000/d on a 41,000 dwt and petcoke to Med was done at $13,500/d on a 35,000 dwt.
Rates increased significantly from ECSAm. A Tess58 was reported around $20,000/d basis dely W Africa, via ECSAm to Spore/Jpn range. Another 58,000 dwt was fixed around $12,000/d basis dely W Africa to Skaw/Passero range. On Handies a nice 38,000 dwt was fixed around $19,000/d basis dely ECSAm for a tct to Skaw/Passero and another similar unit was evaluated around $23,000/d basis dely dop for a tct to Spore/Jpn.
Handy (Indian Ocean/South Africa)
Rates slightly increased in MEG/WCI. A 53,000 dwt open WCI was fixed for a CrossMeg at $12,000/d basis dely dop. A similar unit was fixed for a trip via MEG to ECI/Bangladesh at $16,000/d basis dop. Towards the end of the week a 57,000 dwt open UAE was rumoured at $19,000/d for a trip to Bangladesh. ECI rates seemed to come off during the week. In the middle of the week, a 56,000 dwt open ECI was fixed around $14,000/d basis dely dop for a trip to China with iron ore. Towards the end of the week a similar vessel fetched around $12,500/d for a similar trip. S Africa seemed to be a mixed bag with longer fronthaul trips to F East still paying premium and those to WCI being softer. A 58,000 dwt was fixed for a coal trip to India at $18,000/d + 180,000 gbb to WCI and $19,000/d + 190,000 gbb to ECI. Similar units to F East were fixing around $20,000/d + 200,000 gbb. 63,000 dwt vessels were rumoured around $24,000/d + 240,000 gbb and a 61,000 dwt was fixed for a trip to SE Asia around $21,000/d + 210,000 gbb.
Banchero Costa and Co Spa
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