Weekly detailed analysis of world shipping freight markets for all major routes for March 18– March 25, 2024.
Capesize (Atlantic and Pacific)
Downward trend across all basins with Capesize freight rates ending lower than the previous week. The Australia-China iron ore route recorded a significant drop as well as out of Brazil with lower rates and activity slowing. Nevertheless, the positive sentiment persists, basically in view of stable fundamentals both in the Atlantic and the Pacific basins with potential for future gains. Iron ore futures recorded some gains on anticipation of an increase in demand from China amid signs of improving steel consumption and growing interest for stockpiling. In Pacific, Rio Tinto fixed four TBN vessels to load its cargoes of 170,000mt +/- 10% iron ore from Dampier to Qingdao, laydays 4/6 April, 5/7 April, 6/8 April and 8/10 April respectively at $12.15, $11.95, $12.00 and $12.15/mt. Panocean fixed the MV Maran Guardian (179,701 dwt | 2010 built) to lift a cargo of 160,000mt +/- 10% iron ore from West Australia to Qingdao, laydays 8/10 April at $12.20/mt. Oldendorff fixed a TBN vessel to load a stem of 130,000mt +/- 10% coal from Newcastle to Mailiao, laydays 15/24 April at a freight rate slightly above $15.00/mt. LSS fixed a TBN vessel to load a cargo of 150,000mt +/- 10% coal from Bunati to Mundra, laydays 5/11 April at $9.00/mt. Simec fixed a Polaris TBN vessel to load a cargo of 170,000mt +/- 10% iron ore from Whyalla to Qingdao, laydays 19/24 April at $17.60/mt. In the Atlantic basin, the MV Sikamia (207,923 dwt | 2008 built) was fixed to lift a stem of 190,000mt +/- 10% iron ore from Sudeste to Qingdao, laydays 17 April onwards at $28.75/mt. EZDK’s tender of 150-160,000mt +/- 10% iron ore from Tubarão to El Dekheila, laydays 8/17 April was fixed at $13.25/mt. Tata fixed a TBN vessel to load a cargo of 160,000mt +/- 10% iron ore from Açu to Ijumiden, laydays 17/21 April at $13.90/mt. Tata Steel also fixed the MV CIC Paola (180,000 dwt | 2014 built) to load a cargo of 160,000mt +/- 10% iron ore from Narvik to Ijmuiden, laydays 1/5 April at $8.00/mt. Rio Tinto fixed a LNG dual fuel vessel to load a cargo of 190,000mt +/- 10% iron ore from Seven Islands to Qingdao, laydays 12/18 April at $37.75/mt. Five Ocean won the Posco tender with the MV Golden Zhoushan (175,853 dwt | 2011 built) to lift a stem of 150,000mt +/- 10% iron ore from Port Cartier to Pohang, laydays 13/27 April at $40/mt. Out of South Africa, Ore & Metal fixed an Oldendorff TBN vessel to load a cargo of 170,000mt +/- 10% iron ore from Saldanha Bay to Qingdao, laydays 6/11 April at $21.90/mt.
Panamax (Atlantic and Pacific)
After a very promising week, the Panamax Atlantic market witnessed quite a setback due to lacking demand. Notwithstanding the very low tonnage count, P1A_82 closed the week on a positive note with a couple of grain trades reported in the region of mid $18,000s/d basis BKI. A modern Kamsarmax achieved $19,000/d basis dely Gib for a TC trip via NCSAm with grains and redelivery Skaw/Gib. Activity on P2A_82 was unexciting, scarce mineral and grains demand from both US Gulf, US EC and NCSAm; a 2006 Kamsarmax was reported fixed at $27,500/d + $750,000 gbb for a trip via US EC and redely China. The route that decreased the most was certainly P6_82 with rates dropping approximately $1,500/d – closing the week at $21,409/d. Activity was not very exciting with most grain houses withdrawing from April bids and switching to selling freights.
The market in Pacific was firm with NoPac and Australia RV fixing in the high teens. On Monday a scrubber fitted 76,454 dwt built 2005 was rumored at $17,000/d basis prompt dely Hachinoe for a NoPac RV, on Tuesday an 82,000 dwt built 2016 achieved $20,250/d on similar basis. Shorter trips like Indo RV were fixed in the mid/high $20,000s/d; a scrubber fitted 85,200 built 2021 open Singapore 24 March was reported on subjects for a trip via Indonesia redelivery Philippines at $27,000/d whilst for the same trip an 81,000 dwt built 2017 was done at $27,250/d basis dely Toledo, Philippines 26 March.
Handy (Far East/Pacific)
Rates remained firm from SE Asia. A 60,000 dwt open SE Asia was reported at $17,500/d with coal to WCI. A 56,000 dwt open Spore was fixed around $18,000/d for a trip to China. A 54,000 dwt achieved $16,000/d basis dely Spore to China. A 60,000 dwt was fixed at $15,000/d basis dely dop Hong Kong for a trip via Indonesia to S Korea. A Supramax open S China achieved $14,000/d from Vietnam to Philippines with clinker. On backhaul, a 57,000 dwt was fixed at $14,000/d for 65 days and $16,500/d after to Med via COGH.
Handy (North Europe/Black Sea/Mediterranean)
Activity slowed and the tonnage list increased, but rates remained healthy. A 58,000 dwt fixed a petcoke cargo from Ghent to China at $27,500/d, a 43,000 dwt was rumored fixed and failed for period redely Atlantic at $16,500/d, a 37,000 dwt was fixed via Cont to USG at $15,000/d, a 37,000 dwt fixed grains from France to Algeria at a TCE equivalent of around $13,000/d, a 36,000 dwt was fixed via UK to USG at $13,300/d, on the same route a 28,000 dwt got $13,000/d and a 33,000 dwt via Denmark to Marmara got $16,500/d.
Prompt cargoes were still missing in the area, the market looked a bit weaker, but TA trips and fronthauls increased as the week progressed. The congestion at the Bosphorus and the disruptions in the Red Sea did not allow rates to fall, but demand is lacking. 35,000 dwt tonnage CrossMed was fixing around $12,500/12,750/d basis dely Canakkale, the trip to Cont may get a few hundred dollars more. Supramax availability in the area was limited, but rates were definitely below $15,000/d for trips to Med destinations. TA trips increased towards the end of the week but remained around $14,000/d to USG and around $11,500/12,000/d to ECSAm, very close to last week levels. For Supramax tonnage the trip to USG was around the same levels. Fronthaul were once again recording the strongest increase: Supramaxes with dely passing Canakkale via BSea to Spore/Jpn increased to $28,500/d, Handies were in the low $20,000s/d.
Handy (USA/N.Atlantic/Lakes/S.America)
A stable week with a steady stream of fixtures and the tonnage list that started increasing mostly for Ultramax tonnage. Fronthaul increased again. Ultramaxes were fixed for trip to China with grains at $28,500/d and with coal to India at $28,000/d. On TA a Supramax from Fazendinha to Italy was covered at $21,000/d with grains, a trip to E Med with petcoke was fixed on a Supramax at $16,000/d and petcoke to South Africa was done at $17,500/d on a Ultramax. On Handies a trip to Morocco with grains was covered at $12,900/d on a 38,000 dwt.
The market was stable with some small improvements. On Handies a nice 35,000 dwt shallow and modern was evaluated around $18/19,000/d basis dely aps ECSAm for a tct with grains to Cont/Med range. A 31,000 dwt was fixed at $13,000/d for 50 days and $15,000/d after basis dely dop W Africa for a tct via ECSAm and back to W Africa. On Supramax and Ultramax little was reported. In any case the market was firmer with charterers evaluating $15,000/d + 500,000 gbb for a trip to Spore/Jpn range on a 47,000 dwt.
Handy (Indian Ocean/South Africa)
Rates increased more from S Africa compared to MEG/ECI range. A 58,000 dwt open Fujairah was fixed around $19,000/d dop for a trip to WCI with limestone. With similar redelivery, a 56,000 dwt was fixed basis dely aps Oman loading port at $18,000/d. A similar trip via Oman to WCI was fixed at $16,000/d basis dely dop WCI. A trip to ECI with sulphur was fixed on a Supramax open MEG at $18,000/d. ECI rates remained on a slightly positive trend, after a 56,000 dwt was fixed around $12,500/d early in the week to China with iron ore, another similar unit was heard at $14,000/d. A 64,000 dwt open ECI was fixed around $15,500/d dop for a trip with coal via Indo to WCI. Rates increased from S Africa, a 61,000 dwt was reported at $23,000/d + 230,000 gbb for a trip to F East and a 63,000 dwt got $24,000/d + 240,000 gbb on a similar trip. For S African coal to India, a 63,000 dwt open WCI was reported at $18,000/d levels and a 56,000 dwt was fixed at $20,000/d + 200,000 gbb towards end of the week.
Banchero Costa and Co Spa
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