Weekly detailed analysis of world shipping freight markets for all major routes for March 4– March 11, 2024.
Capesize (Atlantic and Pacific)
An active week ended on a positive note after the major miners in the Pacific fixed many cargoes and also a growing cargo volume from operators appeared. In the Atlantic a healthy volume of cargo was seen and, all in all, this helped to maintain the positive sentiment. On the period front, the Genco Liberty (180,387 dwt | 2016 built | scrubber-fitted) was fixed basis delivery Boryeong prompt/onwards for 11/14 months period at $35,000/d to an undisclosed charterer. In Pacific, FMG fixed 2 TBN vessels to load its cargoes of 160,000mt +/- 10% iron ore from Port Hedland to Qingdao, laydays 22/23 March and 23/25 March, respectively at $13.55 and $14.40/mt. Rio Tinto fixed two TBN vessels to load its cargoes of 170,000mt +/- 10% iron ore from Dampier to Qingdao, laydays 24/26 March and 25/27 March, respectively at $13.50 and $14.10/mt. Bohai Shipping (Jijiao) fixed a TBN vessel to load a stem of 170,000mt +/- 10% iron ore from Dampier to Qingdao, laydays 22/26 March at $14.00/mt. Vale fixed two TBN vessels to load its cargoes of 170,000mt +/- 10% iron ore from TRMT to Qingdao, laydays 14/16 March and 17/19 March, respectively at $11.60 and $10.50/mt. Simec fixed a Polaris TBN vessel to load a cargo of 170,000mt +/- 10% iron ore from Whyalla to Qingdao, laydays 31March/6 April at $19.50/mt. Oldendorff fixed the Maran Prosperity (174,333 dwt | 2006 built) basis delivery Xiamen 19/24 March for a Brazil/W Africa RV at $41,000/d. In the Atlantic basin, Mercuria fixed the Cyclades (170,000 dwt | 2004 built) to load 170,000mt +/- 10% iron ore from Tubarão to Qingdao, laycan second half of April in the region of low $31s/mt. The MOL controlled Grand Sakura (181,924 dwt | 2021 built) was fixed to load 170,000mt +/- 10% iron ore from Tubarão option W Africa, with an ETA on 3 April at $30.50/mt. Koch fixed a TBN vessel to load a cargo of 180,000mt +/- 10% iron ore from Tubarão option West Africa, laydays 5/10 April at $29.75/mt. The Salt Lake City (171,810 dwt | 2005 built) was fixed to load a stem of 170,000mt +/- 10% iron ore from Tubarão to Qingdao, with an ETA on the 24 April at $30.50/mt. Cargill Metals fixed an NYK TBN vessel to load a cargo of 165,000mt +/- 10% iron ore from Pointe Noire to Bahrain, laydays 1/10 April at $31.50/mt. From S Africa, TKSE fixed a NYK TBN vessel to load a stem of 180,000mt +/- 10% iron ore from Saldanha Bay to Rotterdam, laydays 25 March/5 April at $11.75/mt.
Panamax (Atlantic and Pacific)
The opening week of March left a very positive sentiment for the Panamax Atlantic market with rates driven by a sudden outburst of demand and activity from ECSAm. On one hand, spot tonnage had to discount to secure the remaining March cargoes, on the other hand April arrivals witnessed healthy rates breaking the $20,000/d BKI level on P6 route on Friday afternoon – most of the modern tonnage was able to achieve above $21,000/d region on retro basis. For instance, a 2012 Kamsarmax was reported fixed by a grain house at mid $21,000s/d basis dely retro WCI for a trip via Santos and redely Spore/Jpn range for first half April dates. Later April dates achieved significant rates with several fixtures reported above the $20,000/d range BKI equivalent retro Spore. N Atlantic activity was not as frenzy, however improvements for both P1A_82 and P2A_82 were recorded with routes closing the week with a +$700/d and +$1,100/d respectively. A 2013 built was rumored fixed at $20,000/d aps NCSAm for a trip to Continent with grains.
Pacific remained at hefty levels, with Kamsarmax tonnage fixing $18/19,000/d longer Pacific RVs and $16/17,000/d for Indonesia round trips. This was mainly driven by strong FFA and period activity and ECSAm, which created some competition and pushed Pacific charterers to pay up to secure tonnage. Towards the end of the week the was a feeling that rates might have peaked, especially considering that all NoPac cargoes seemed to be covered.
Handy (Far East/Pacific)
On the most representative routes rates kept increasing by more than $1,000/d both on Handies and larger sizes. A 56,000 dwt with dely Vietnam was reported at $15,000/d for a trip via Indonesia to Philippines, a 55,000 dwt with dely Thailand was done at $17,000/d for a trip via Philippines to S China with nickel ore and a 55,000 dwt with dely S China took $16,000/d for a trip via Indonesia to Brunei. To the West, a 57,000 dwt with dely S China was rumored at $14,500/d for a trip via Indonesia to Chittagong, a 58,000 dwt with same dely was done at $15,750/d via Indonesia to ECI and a smaller Supramax with dely Philippines took $24,000/d for a trip via Indonesia to Bangladesh with clinker
Handy (North Europe/Black Sea/Mediterranean)
Rates remained stable with some healthy fixtures, but overall demand and supply are well balanced. A 63,000 dwt was fixed for scrap to E Med at $17,000/d. Fertilizers from Ust Luga recorded a 63,000 dwt to Morocco at $25,000/d, a 55,000 dwt to New Orleans at $17,000/d and a 63,000 dwt to ECSAm got $21,250/d. A 58,000 dwt open Liverpool was fixed for a tct via Morocco to India (via COGH) at $20,000/d. A 37,000 dwt was fixed with grains to Morocco at $11,500/d.
Rates in this area were on a slightly positive trend. The destinations that have been rising the most were those towards F East and USG, where the market kept declining. The numbers exchanged for 35,000 dwt tonnage on CrossMed routes were around $13,000/d basis dely Canakkale, rates for Cont were at the same level. Owners’ ideas were not far from the ones heard the previous week, but now charterers rose their bids. Supramax on CrossMed were fixing around $16,000/d. TA trips for Handies were around $14,000/d to USG and around $11/11,500/d to ECSAm, for Supramax tonnage around $15,000/d to USG and $14,000/d to ECSAm. Supramax rates for fronthauls increased to $26,500/d basis dely Canakkale via BSea to Spore/Jpn, on the same route Handies were assessed stable at $20,000/d, but very slow activity was reported.
Handy (USA/N.Atlantic/Lakes/S.America)
The market was still decreasing, but it started stabilizing towards the end of the week, due to increasing demand. Most of the vessels were fixed for TranAtlantic business. The petcoke trade to MEG/India range was fixed on Supramax tonnage around $19,000/d while an Ultramax was covered at $24,000/d for a trip to Philippines. A trip to S Korea with grains was fixed at $18,000 on Supramax. On TransAtlantic, the grain trade on Ultramaxes was covered to Egypt at $14,000/d, and to Continent at $15,500/d. A Supramax to Med with coal was done at $13,000/d. On Handies the market was stabilizing too with a trip to Continent with grains fixed at $11,500/d on a 39,000 dwt.
Rates were slightly higher compared to the previous week. A nice 37,000 dwt was reported fixed at $17,000/d basis dely aps ECSAm for a tct with grains to Cont/Med range. Levels for fronthauls on similar sized tonnage was around $22,000/d aps. On larger sizes, a 58,000 dwt was fixed around $19,000/d basis dely dop W Africa for a tct via ECSAm to Cont/Med range.
Handy (Indian Ocean/South Africa)
Rates were basically unchanged during the week. MEG to WCI with limestone was fixed on a 53,000 dwt open UAE at $16,000/d. The usual aggregates business commanded premium rates and a MES66 type achieved $24,000/d dop WCI. By the middle of the week a MES56 eco-type was rumoured around $19,000/d for similar trades and a 57,000 dwt open South WCI was reported at $15,500/d for such business bss dop. Rates remained flat from ECI, a 58,000 dwt was heard at $16,500/d dop ECI for a trip to China with iron ore in bulk. A similar trip was fixed on a 61,000 dwt at $18,750/d. Handy rates improved during the week and a 40,000 dwt open UAE was fixed at $15,000/d for a backhaul trip and from ECI a 37,000 dwt was fixed at $17,500/d for 2/3 laden legs. Rates slowed further from S Africa, a 61,000 dwt was heard to have fixed $18,500/d + 185,000 gbb to WCI/Pakistan range.
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