Weekly detailed analysis of world shipping freight markets for all major routes for November 27 – December 3, 2023
Capesize (Atlantic and Pacific)
A remarkable week for Capes with consistent gains and stability prevailing in both basins. The overall positive sentiment continues as well as the optimistic outlook and, as a result, the BCI 5TC route reached $51,727/d by the end of the week. Notably, iron ore has seen the most significant increase during this month and, as the majority of these cargoes are being transported by Capesize vessels, the Capesize market should remain strong. In the Pacific, Rio Tinto fixed three TBN vessels to load their cargoes of 170,000mt +/- 10% iron ore from Dampier to Qingdao. Two shipments with laydays 17/19 December and another one with laydays 18/20 December, respectively at freight rates of $12.90, $12.95 and $13.05/mt. Early in the week Zhejiang fixed a TBN vessel to load a stem of 170,000mt +/- 10% iron ore from Dampier to Qingdao, laydays 15/19 December at $12.00/mt. BHP fixed a TBN vessel to load their cargo of 160,000mt +/- 10% iron ore from Port Hedland to Qingdao, laydays 16/18 December at $12.90/mt. Cargill fixed a TBN vessel to lift a cargo of 160,000mt +/- 10% iron ore from Port Hedland to Qingdao, laydays 16 December onwards at about $13.10/mt. The MV Pacifist (181,458 dwt | 2011 built) was fixed basis delivery retoractive to sailing Kwangyang on the 30th November, for one Pacific round voyage at $34,000/d. The MV Cape Phoenix (181,356 dwt | 2011 built) was fixed basis delivery Xiamen on the 30th November, for one Pacific round voyage at about $30,000/d. In the Atlantic basin, Vale was quite active having fixed a TBN vessel with an ETA Brazil 14-16 December, to lift its cargo of 170,000mt +/- 10% iron ore from Tubarão to Qingdao at a freight rate of $35.50/mt. Vale also fixed a TBN vessel to load its cargo of 170,000mt +/- 10% iron ore from Tubarão to Qingdao, laydays 20/30 December at $32.00/mt and a Swissmarine Newcastlemax TBN to load a cargo of 170,000mt +/- 10% iron ore from Tubarão to Qingdao, laydays 20/30 December at $28.00/mt. The MV Epic (180,149 dwt | 2010 built) fixed a cargo of 170,000mt +/- 10% iron ore from Tubarão to Qingdao, end December laydays at $34.20/mt. ST Shipping fixed the MV Genco Reliance (181,146 dwt | 2016 built) to load a cargo of 170,000mt +/- 10% iron ore from Tubarão to Qingdao with end December cancelling at a freight rate of $32.50/mt and, apparently, with an option for a cargo from Colombia to China. Rio Tinto fixed a TBN vessel to load its cargo of 190,000 mt +/- 10% iron ore from Seven Islands to Oita, laydays 21/27 December at $45.50/mt. The MV CS Nan Jin (179,669 dwt | 2021 built scrubber-fitted) which was open Gijon fixed a NSC tender, basis delivery to make Pointe Noire 10/19 December for one time charter trip to Japan at $70,000/d. From S Africa, a Berge Bulk TBN vessel was fixed by Ore and Metal to lift a cargo of 170,000mt +/- 10% iron ore from Saldanha Bay to Qingdao, laydays 17/31 December at a freight rate of $24.70/mt.
Panamax (Atlantic and Pacific)
The Atlantic basin was characterized by another week of rapidly increasing rates on the back of strong mineral and grains demand, especially from North Atlantic regions and a shorter tonnage list. The ongoing situation at the Panama Canal and severe weather conditions were both additional variables determining the increase of rates. P1A_82 just like the past weeks has been the route with the biggest increase, almost + $4,000/d, closing the week at $30,225/d, the highest rate recorded in 2023. A 2013 Kamsarmax was rumored at $28,000/d basis dely Gibraltar for a trip via USG to Skaw/Gib range with grains. US EC coal cargoes to India remained pretty active and a Kamsarmax was fixed at $38,500/d basis dely dop Gib. From S America, despite activity was not particularly exciting, rates followed the positive trend of the Northern regions, with P6_82 averaging $17,255/d basis dely Spore for a trip via ECSAm to F East with grains. On aps basis, a modern Kamsarmax achieved $20,000/d + 1 mln gbb for a standard trip via Santos to Spore/Jpn range.
Another strong week in Pacific, mostly driven by strong FFA trading and the strong Atlantic market. NoPac generated returns in the $15/16,000/d for tonnage open N China/S Korea range. Australia generated similar levels with vessels fixed in the $16/17,000/d depending on the delivery. The Indonesian market was also fairly strong, with older vessels fixed in the region of $16/17,000/d basis dely S China.
Handy (Far East/Pacific)
Rates on all the most representative routes increased by an average $2,000/d on Supramax and Handy tonnage. A 56,000 dwt with dely S China was reported at $10,800/d for a trip via Indonesia to S China and a similar vessel with dely Spore was done at $17,000/d for the same trip. With West direction, a 61,000 dwt with dely Thailand was fixed at $17,200/d for a trip via Thailand to ECI with dolomite, a 57,000 dwt with dely S China took $9,500/d for a trip via Indonesia to WC India and a 53,000 dwt with dely Spore got $14,000/d for a trio via Indonesia to ECI.
Handy (North Europe/Black Sea/Mediterranean)
Further significant improvements on Supramax and Ultramax with a lot of scrap cargoes in the market all for first half of December dates. With a reasonably short tonnage list of spot units in Cont/Baltic, rates quickly raised to reach levels in excess of $30,000/d to Cont/Med. A 55,000 dwt was fixed with scrap from Cont to E Med at $25,000/d, then an Ultramax achieved $32,000/d. From Russia, a 55,000 dwt was fixed for a trip via Russian Baltic to ECSAm at at $24,000/d and a Supramax open Antwerp achieved low $20,000s/d for a trip via Russian Baltic to India and redely Port Said.
Handy (USA/N.Atlantic/Lakes/S.America)
The ongoing demand from USG kept rates very strong with owns seeking rates starting with a 5 for trips to F East. Petcoke to India on Supramax was fixed at $40,000/d, grains to Spore were done at $41,000/d on Ultramax with a minimum duration of 75 days. On TransAtlantic, petcoke to Italy was fixed at $40,000/d on a 56,000 dwt and an Ultramax was fixed for a trip to Cont at $39,000/d. Quite strong demand also for short period with an Ultramax fixing $22,000/d for 5/7months, redely in Atlantic. Handies followed the same trend with trips to Cont paying mid/high $20,000s/d on 37,000 dwt tonnage.
The market improved, but the trend remained very different and much lower than the USG. On Supramax a fronthaul was estimated around $23,000/d basis dely W Africa via ECSAm and redely Spore/Japan range with grains, duration around 70/75 days wog. A Tess58 was evaluated around $15,000/d basis dely W Africa for a TA via ECSAm. On Handies, a nice 38,000 dwt was valued arnd $17,500/d basis dely aps ECSAm for a tct with grains to Cont/Med range. Handies 38,000 dwt on fronthaul were getting fixed around $23/24,000/d.
Handy (Indian Ocean/South Africa)
Rates kept increasing through the week in all areas. Early in the week a 58,000 dwt was reported at $15,000/d basis dely Fujairah to Bangladesh, a 57,000 dwt with the same destination got $15,750/d basis dely Salalah. Period rates also seemed to go up in the area and a 61,000 dwt open WCI achieved $16,500/d for 3/5 months. A similar unit open Pakistan was fixed at $17,000/d for 7/9 months. Rates kept increasing also from ECI and a 63,000 dwt was fixed around mid $14,000/d levels basis dely dop ECI range for a trip via ECI to China with iron ore in bulk. As the week progressed some 61,000 dwt units were heard around $15,000/d level and towards the very end of the week a fixture was reported at $16,250/d. S Africa spiked with a 63,000 dwt fixed at $22,000/d + 220,000 gbb with coal to F East. A 63,000 dwt was reported at $16,000/d basis dely dop India to F East with minerals.
Banchero Costa and Co Spa
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