Weekly detailed analysis of world shipping freight markets for all major routes for May 13– May 20, 2024.
Capesize (Atlantic and Pacific)
Softer sentiment due to slower demand and Capesize rates reducing further also as a result of a surplus of tonnage for end-May and early-June dates. Approaching the end of the week, activity picked up in Pacific and in Atlantic (south Brazil and W Africa) closing on a positive note. In the Pacific, Rio Tinto fixed three TBN vessels to load its cargoes of 170,000mt +/- 10% iron ore from Dampier to Qingdao, laydays 31 May/2 June, 1/3 June, 2/4 June and also the MV Aqua Venture (180,000 dwt | 2010 built) for laydays 1/4 June, at $10.55, $10.15, $10.50 and $10.20/mt respectively. BHP fixed a TBN vessel to load its cargo of 160,000mt +/- 10% iron ore from Port Hedland to Qingdao, laydays 2/4 June at $10.65/mt. Panocean fixed the MV SM Gladstone (179,255 dwt | 2010 built) to load a cargo of 160,000mt +/- 10% iron ore from Port Hedland to Qingdao, laydays 5/7 June at $10.50/mt. Vale fixed the MV Shandong De Long (180,727 dwt | 2020 built) to lift its cargo of 170,000mt +/- 10% iron ore from TRMT to Qingdao, laydays 25/28 May at $7.50/mt. Oldendorff fixed the MV Cape Peregrine (180,643 dwt | 2012 built) for a cargo of 130,000mt +/- 10% coal from Newcastle to Mailiao, laydays 5/14 June at $15.10/mt. Kline fixed the MV Mineral Hiroshige (208,572 dwt | 2019 built) basis delivery Dalian on 20 May for one timecharter trip within the Pacific at $36,000/d. In the Atlantic basin, Oldendorff fixed the MV Mount Uluru (181,513 dwt | 2014 built) to load a stem of 170,000mt +/- 10% iron ore, from Tubarão to Qingdao, laydays 18/22 June at $25.00/mt. The MV Alpha Grace (180,556 dwt | 2011 built) was fixed to load a cargo of 170,000mt +/- 10% iron ore from Tubarão option West Africa to China, laydays 1/10 June at $26.00/mt. CSN fixed a Mercuria TBN vessel to load a cargo of 180,000mt +/- 10% iron ore from Itaguaí to Qingdao, laydays 15/17 June at $25.75/mt. Treasure Boost Shipping fixed the MV XH Mega (211,149 dwt | 2023 built) to load a cargo of 190,000mt +/- 10% iron ore, from Freetown to Qingdao, laydays 11/15 June at $24.25/mt. Rio Tinto fixed a Classic Newcastlemax TBN to load a stem of 190,000mt +/- 10% iron ore from Seven Islands to Qingdao, laydays 1/7 June at $30.00/mt. Out of South Africa, Ore and Metal fixed a Classic TBN vessel to load a cargo of 170,000 mt +/- 10% iron ore from Saldanha Bay to Qingdao, laydays 1/5 June at $17.69/mt. Anglo fixed a TBN vessel to load a cargo of 170,000mt +/- 10% iron ore from Saldanha Bay to Qingdao, laydays 6/10 June at a freight rate of $18.15/mt.
Panamax (Atlantic and Pacific)
A negative week for the Atlantic Panamax Market with a rapidly increasing tonnage count from both Singapore and in W Med/Cont was not supported by enough grains/mineral demand. Mineral in particular was very weak especially for TransAltantic RV with some grain activity stemming from ECSAm to N Atlantic. A grain house reportedly fixed a modern Kamsarmax at $21,000/d aps Santos redely Skaw/Gib. Regarding P2A_82, the w-o-k level for the route closed around $25,000/d with a 2012 built Kamsarmax reported at $26,000/d dop Cont for a trip via US EC and redely China. P6_82, despite decent activity, was pushed down by the increasing number of ballasters with BKI level settling in the mid/high $17,000s/d for early June and closer to $17,000/d for end June dates.
The Pacific market was down, mainly due to a lack of cargoes. The N Pacific was quite scarce of cargoes, while coal from Australia was a bit more active. Indonesia was also not very active. In general, the Pacific was fixed in the region of $15k/16,000/d basis Baltic Kamsarmax depending on the length of the trip. Indonesia was fixed in the region of $16/18,000/d depending on the position of the vessel. Many owners decided to reposition their vessels either by sending them in ballast or by fixing repositioning voyages to India.
Handy (Far East/Pacific)
After a few weeks on a positive trend, rates slightly declined. A 57,000 dwt with dely Indo was reported at $20,000/d for a trip via Indo to China and a 55,000 dwt with dely mid-China was done at $17,000/d for the same trip. A 63,000 dwt with dely Indo achieved $25,000/d for a trip via Indo SE Asia, a similar vessel with dely Thailand was done at $17,000/d for a RV via Indo and a 57,000 dwt with dely Taiwan was done at $17,000/d for a trip via Indo to Vietnam. To Western destinations, a 60,000 dwt with dely Indo was fixed at $23,000/d for a trip via Indo to ECI with metcoke.
Handy (North Europe/Black Sea/Mediterranean)
Handysize and larger sizes kept declining throughout the week due to a long tonnage list and despite a slight increase in demand seen from the Baltic to China and Med. A 39,000 dwt was fixed basis dely Bremen for a trip to US EC with lumbers at $14,500/d while a 37,000 dwt OHBS open Norway was fixed with timbers to USG at $13,750/d. Considerable activity for African destinations and a 37,000 dwt with dely Atlantic Spain was fixed for a trip to Mauritania with grains at $11,250/d and a 39,000 dwt was fixed basis dely aps Rotterdam at $14,000/d to the Gulf of Guinea. A 32,000 dwt was reported at $10,000/d passing Skaw for a trip to Turkey.
The negative sentiment was still prevailing, and the lack of grain demand has been affecting fixing levels. So far, no clear signs of a possible change in short term were spotted. 35,000 dwt Handies CrossMed softened further to $8/9,000/d basis dely Canakkale. The trip to Cont was fixed at basically the same levels of the previous week, maybe a shade more. 58,000 dwt Supramaxes seemed more active mostly thanks to clinker cargoes to USG and W Africa. CrossMed trips were fixed around $12,500/13,000/d, W Africa trips were around $14/14,500/d and USG destinations around $13/13,750/d. TA trips for Handies were fixed at $11,000/d with cement at a $3,000/d premium. Little demand to ECSAm, rarely fixed at $9/10,000/d to Owners betting on a market increase in the area. Also fronthauls were slowing with Supramax tonnage fixing $23/24,000/d basis dely passing Canakkale via BSea to Spore/Jpn via Suez and in the very low $20,000s/d via COGH. Handies on fronthaul were probably around $16/17,000/d, but not much was reported.
Handy (USA/N.Atlantic/Lakes/S.America)
The USG market remained fairly stable, but began to fall towards the end of the week due to an increase in vessels and a decrease in fresh stems in the area. The grains trade to Spore/Japan was covered at $23,500/d on Ultramax. On the TransAtlantic, woodpellets were fixed to Cont at $18,500/d on an Ultramax, while grains were fixed at $20,000/d for the same tonnage. Petcoke to E Med was covered on Ultramax at $19,500/d and coal to Praia Mole at $7,000/d. On Handies, a voyage to the F East with grains was fixed at $16,500/d on a 40,000 dwt vessel.
The market in the area has remained stable for both Handies and Supramaxes. A nice 36,000 dwt, modern and shallow, was fixed base dely aps Recalada for a TCT with grains to WCSAm at $23,000/d basis dely aps. Another nice 38,000 dwt was fixed at $17,000/d basis dely aps Recalada for a trip with grains to Algeria. On Supramaxes, there has not been much change, there was a rumour that a 58,000 dwt was fixed basis dely aps Recalada for a trip with grains redely Bangladesh at $17,000/d + 700,000 gbb.
Handy (Indian Ocean/South Africa)
Rates remained firm in MEG/WCI range. 57,000 dwt tonnage in MEG was fixed at $18,250/d dop for trips to ECI with petcoke. A 57,000 dwt open Sohar achieved $19,000/d to move urea to SE Asia. A 57,000 dwt open WCI fetched $17,000/d dop with clinker via Pakistan to Bangladesh; a similar trip was rumored on a 63,000 dwt at $21,500/d dop level. Rates started to come off in ECI. A 57,000 dwt got around $17,000/d dop ECI early in the week for a trip to China with iron ore, then a similar ships got around $15,000/d dop towards end of the week, however 63,000 dwt vessels were fixing around $19,500/d dop Bangladesh throughout the week. Rates for S Africa kept improving during the week. A 56,000 dwt open Mombasa was rumoured at $22,000/d dop levels for a trip to China via S Africa. On a similar trip with manganese ore an eco 63,000 dwt was fixed at $25,500/d + 255,000 gbb. A couple of 63,000 dwt were fixed around $24,000/d + 240,000 gbb for trips to China early in the week. Towards end of the week, a 63,000 dwt was reported at $26,500/d + 265,000 gbb. On the same business a 63,000 dwt open Colombo was rumoured at $20,000/d dop levels.
Banchero Costa and Co Spa
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