Weekly detailed analysis of world shipping freight markets for all major routes for August 16 – August 26, 2024.
Capesize (Atlantic and Pacific)
Last week the Capesize market started busy and strong in both the Atlantic and Pacific, but ended quiet and with minimal activity. Overall the sentiment remained steady and positive. Iron ore futures climbed, supported by property measures in China and improved demand for the coming months. On the period front, Pan Ocean fixed the MV PSU Third (207,999 dwt | 2018 built) basis delivery Caofeidian 1/10 September for one year period at %31,000/d. In the Pacific, Rio Tinto fixed three TBN vessels to load its cargoes of 170,000mt +/- 10% iron ore from Dampier to Qingdao, laydays 5/7 September, 6/8 September and 7/9 September, all at a freight rate of %11.00/mt. FMG fixed two TBN vessels to load its cargoes of 160,000mt +/- 10 iron ore from Port Hedland to Qingdao, the first with a laycan 4/5 September and the other with a laycan 5/7 September, respectively at %11.30 and %11.00/mt. BHP fixed three TBN vessels to load its cargoes of 160,000mt +/- 10% iron ore from Port Hedland to Qingdao, laydays 8/10 September at rates ranging from %10.95 to %11.05/mt. Safe Arrival fixed the MV Titanship (207,855 dwt | 2011 built) for a cargo of 180,000mt +/- 10% from West Coast Australia to Qingdao, laydays 7 September onwards at %10.50/mt. Olam fixed the MV Star Dragon (178,062 dwt | 2008 built) basis delivery retroactive to sailing Dongjiakou 20 August for one timecharter trip via Taboneo to Hong Kong at %21,000/d. Vale fixed a Classic TBN vessel to load its cargo of 170,000mt +/- 10% iron ore from TRMT to Qingdao, laydays 1/3 September at %8.78/mt. In the Atlantic basin Vale fixed an Oldendorff TBN vessel to load its cargo of 170,000mt +/- 10% iron ore from Tubarão to Qingdao, laydays 7/11 September at %25.50/mt and also a Mercuria TBN vessel for a cargo of 150,000mt +/- 10% iron ore from Tubarão to Misurata, laydays 15/24 September at %14.10/mt, basis free of disbursements at the discharge port. Swissmarine fixed the MV Barbarian Honor (180,091 dwt | 2011 built) to load a cargo of 170,000mt +/- 10% iron ore from Tubarão option West Africa to China, laydays 9/30 October to be narrowed, at a freight rate of %27.00/mt. TKS fixed an Oldendorff TBN vessel to load a cargo of 170,000mt +/- 10% iron ore from Seven Islands to Rotterdam, laydays 15/24 September at %7.45/mt. Qatar Steel fixed a TBN vessel to load its cargo of 150,000mt +/- 10% iron ore from Narvik to Mesaieed, laydays 1/10 October at a freight rate in the mid %27’s/mt. Out of South Africa, Ore and Metal fixed a TBN vessel to load a cargo of 170,000mt +/- 10% iron ore from Saldanha Bay to Qingdao, laydays 12/16 September at %19.28/mt.
Panamax (Atlantic and Pacific)
The negativity from previous weeks continued to rise with August holidays aggravating rates in the Atlantic Panamax market where plentiful tonnage availability, especially in Continent, did not show much sign of resistance due to a serious lack of fresh cargoes and owners consequently fixing quick TA RVs at lower levels to buy time. P1A_82 closed the week with a negative delta of almost $2,000/d on a w-o-w basis, an early September 80,000 dwt 2012 built was reported for grains TA RV at $10,000/d dop Cont. With soybeans practically over in Brazil, P6 was still on the weak side waiting for a further push from corn supply. The route closed the week at $13,819/d with some spot fixtures reported at $13,000/d bki p6 equivalent.
Activity remained limited, mainly due to a shortage of cargoes. Traders and grain houses covered their positions with their own fleet and owners without cargoes had no choice but to ballast South. North Pacific was still lacking cargoes with NoPac season yet to start; similarly, USG, after taking a few vessels from China/S. Korea/Japan, ceased its activity as traders were not able to sell yet. The scenario for South Pacific was similar with Indonesia and Australia struggling to pick up pace. Generally, P3A was fixed in the $12,000/d region basis BKI with dely CJK and Indo RV was fixed in the $11,000/d for over aged vessels and Indo-India was fixed $9,500/10,000/d basis dely HK.
Handy (Far East/Pacific)
Another stable week in F East. A 57,000 dwt with dely Indo was reported at $18,500/d for a trip via Indonesia to China, a smaller Supramax with dely Spore was done at $15,500/d for a trip via Indonesia to China and a 63,000 dwt with dely Vietnam achieved $15,250/d for a trip via Indonesia to China. A 63,000 dwt with dely Thailand was rumored at $16,000/d for a trip via Indonesia to Thailand and a 61,000 dwt with dely S China took $14,500/d for the same trip. Towards India a 63,000 dwt with dely S China was fixed at $15,000/d for a trip via Indonesia to WCI.
Handy (North Europe/Black Sea/Mediterranean)
After a few very quiet weeks the Cont/Baltic area showed some activity again. A 34,000 dwt open Antwerp was fixed at $10,000/d dop for a trip to Spanish Med while a 38,000 dwt was heard around $12,500/d aps for a trip from Baltic to Morocco. A Handy cargo from Baltic was rumored around $12/13,000/d TC equivalent for a trip to North Spain and a 34,000 dwt open Bremerhaven was fixed for a trip with scrap to E Med at $11,000/d. In general, Handies were showing consistent rates with what we experienced at the end of last month. On Supramax a few fresh fertilizer cargoes from Baltic Russia to W Africa and to Med were seen with rates around mid/high $10,000s/d on aps basis.
The market has been characterized by a very low level of activity. Rates seemed to be around the levels of the previous week, perhaps a little lower for the trips set off market. In general, the feeling is the market is always waiting for an improvement that is slow to come. CrossMed trips were fixed around $7,500/8,000/d for 35,000 dwt tonnage, the same level for trips to Cont which was looking less depressed than Med. Supramaxes were still at $9,500/10,000/d level. TA trips on Supramaxes were fixed at $9,500/9,800/d towards USG and $7,500/8,000/d towards S America. Handies were getting rates around $7/7,500/d for trips to ECSAm and $10,000/d to USG. Fronthauls on Supramax was still around $19/19,500/d and Handies were still in the mid-teens.
Handy (USA/N.Atlantic/Lakes/S.America)
The market recorded a slight increase in rates as the availability of tonnages was slightly lower. The grains trade to Spore/Japan was covered at $26,000/d on Supramax tonnage and at $28,000/d on Ultramax. Petcoke to India was fixed at $23,000/d on a Supramax and at $28,000/d on an Ultramax. The TransAtlantic trade followed the same trend and rates raised to $18,000/d for grains on a Supramax run from USG to W Med and at $17,750/d on an Ultramax run from US EC to EC Mexico. Petcoke to E Med was covered around $22,000/d level on Supramax and at $24,000/d on an Ultramax. On Handysize $16,000/d was the rate for a trip from USG to Cont with pellets and $18,000/d for a trip from USG to W Med with grains.
Rates decreased throughout the week. On Handies not much to report: an index type 38,000 dwt modern and shallow was estimated around $17,500/d basis dely aps ECSAm for a tct with grains to Skaw/Passero range for a 35/40 days duration wog. No fixtures were reported on fronthaul which was assessed around $21,000/d. On larger units a Tess58 was estimated around $19,500/d basis dely W Africa for a tct via ECSAm to Spore/Jpn range with grains.
Handy (Indian Ocean/South Africa)
Rates remained flat most of the week with a slight increase in ECI. A Mes56 type open Fujairah was fixed for a trip to WCI with limestone at $16,000/d dop levels. A 53,000 dwt on a similar trip achieved $14,500/d basis aps UAE port. An eco 63,000 dwt open WCI was fixed aps at $17,000/d level for a trip to F East with salt in bulk which was slightly better than previous week. Higher demand from SE Asia pushed rates in ECI higher as the week progressed. A Tess58 open ECI was reported at $14,500/d for a trip to China with iron ore. Coastal trips in WCI were paying Dolphin57 type around $12,500/13,000/d levels basis dely aps ECI port. From S Africa rates remained largely unchanged; a super eco 63,000 dwt fetched $24,500/d + 245,000 gbb basis dely aps Saldanha Bay for trip to China. A 61,000 dwt was fixed for similar business at $21,000/d + 210,000 gbb.
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