Weekly detailed analysis of world shipping freight markets for all major routes for December 9 – December 16, 2024.
Capesize (Atlantic and Pacific)
The Capesize market kept declining due to a lack of support in both basins. The fundamentals were still bearish, as usual for this time of the year and, with the likely weather disruptions during Q1, a strong rebound in rates is hardly expected. In Pacific, Rio Tinto fixed a few TBN vessels to load its cargoes of 170,000mt +/- 10% iron ore from Dampier to Qingdao for laydays 27/29 December at $6.95/mt, another TBN vessel for laydays 29/31 December at $6.80 and, by the end of the week, another TBN with laydays 30 December / 1 January at $6.95/mt. The NSC tender for a cargo of 210,000mt +/- 10% iron ore from Dampier to a Far Eastern port of discharge, laydays 25 December/3 January, was awarded to a Newcastlemax at a freight rate of $6.90/mt. Kepco fixed a STX vessel to load a stem of 135,000mt +/- 10% coal from Newcastle to Boryeong, laydays 27/31 December at a freight rate in the mid $10s/mt. The MV Nightwing (170,000 dwt | 2006 built) was fixed basis delivery CJK on 14 December for a trip via Newcastle to Korea at $11,000/d. Deyesion fixed the MV Salt Lake City (171,810 dwt | 2005 built) basis delivery Yantai, laydays 18/20 December for a time charter trip via East Australia with redelivery China at $6,000/d. In the Atlantic basin Oldendorff fixed a vessel to load a cargo of 170/190,000mt +/- 10% iron ore from Tubarão + West Africa to China, laydays 15/22 January at $16.55/mt. Mercuria fixed a vessel for a C3 cargo basis next year loading, laydays 11/17 January at a freight rate of $16.05/mt. Kline was awarded the Posco tender for a cargo of 150,000mt +/- 10% iron ore from Port Cartier to Gwangyang, laydays 8/16 January at $24.25/mt. Costamare fixed the MV First Penguin (208,772 dwt | 2021 built) for a stem of 190,000mt +/- 10% iron ore from Nouadhibou to Qingdao, laydays 10/19 January at $18.00/mt. Sinoafrica fixed a COA for their cargoes of 170/190,000mt +/- 10% iron ore from Freetown to Qingdao basis 1 cargo per month from January to June 2025 at $18.90/mt and fixed an Everest TBN vessel to lift a stem of 170,000mt +/- 10% iron ore from Freetown to Qingdao, laydays 6/10 January at $17.50/mt. Out of S Africa, Anglo American fixed a Capesize to lift a cargo of 170,000mt +/- 10% iron ore from Saldanha Bay to Qingdao, laydays 26 December / 5 January, at a freight rate in the low $12s/mt.
Panamax (Atlantic and Pacific)
The market remained under pressure experiencing soft rates and subdued activity. Activity is expected to briefly pick up before winding down for the holiday season. Activity was very slow despite an influx of early January tonnage. Rates for transatlantic (TA) voyages are around $8,000, while fronthaul demand remains lackluster, particularly from the US EC. Early January vessels were still gaining some premiums, but overall, the sentiment was weak. Among recent fixtures, a 84,000 dwt built 2024 open Ghent 10 Dec was fixed for a tct via USG redely SE Asia at $17,250/d and a 77,000 dwt built 2014 was fixed aps Up River 25/27 Dec for a tct redely SE Asia $15,000/d + $500,000 bb.
Activity was very limited. The cargo count went down while the tonnage list grew longer. NoPac was the main driver despite the number of cargoes was minimal. An 81,000 dwt built 2017 was reported with petcoke from NoPac at $8,000/d dop Pohang. For what concern grains several standard Kamsarmax were reported between $6,500/7,000/d basis dely N China. Australia and Indonesia demand were very slow with Kamsarmax fixing in the $7/8,000/d basis dely N China $6,000/d for an old lme and $7,000/d basis dely S China.
Handy (Far East/Pacific)
Pacific rates ended the week under considerable pressure due to a long tonnage list. Little fresh demand for larger units and weak sentiment extended losses. A 63,000 dwt open CJK was fixed for a NoPac RV at $12,000/d and a 55,000 dwt with dely Spore was fixed for a trip via Indonesia to China in the low $10,000s/d. For Handies activity was limited. The tonnage count kept increasing. A 28,000 dwt was fixed at $8,000/d basis dely Japan and redely SE Asia.
Handy (North Europe/Black Sea/Mediterranean)
In general rates were decreasing due to a lack of demand and tonnage piling up; although rates in Med kept decreasing and premiums were paid for destinations in that area, premiums that in any case became smaller and smaller due to the lack of alternatives. A 35,000 dwt built 2007 was fixed basis dely Amsterdam for a trip to E Med at $9,000/d with scrap. Similar rates were recorded to USG with a Japanese built 32,000 dwt reported around $9/9,500/d with petcoke. Handy rates to ECSAm were between $7s/8,000s/d. A few fixtures were reported to W Africa: a modern Japanese built 37,000 dwt with dely Brunsbuttel fixed a trip via Poland to Conakry at $11,300/d and an Imabari28 with dely aps French Bay fixed a trip with grains redely Dakar at $9,000/d. Larger units were on the same trend and, despite limited demand, seemed to hold a little better. Fronthaul rates were similar to the previous week around $14,500/d for Supramax tonnage and Ultramaxes at a $1,000/d premium. Also to USG rates remained unchanged around $7/8,000/d.
The market remained very depressed. The accumulation of ships was evident, especially for Handies, which in the next 20 days will be almost a hundred in the area. There is almost no sign of prompt cargoes. If there was still some hope for a recovery before Christmas at this moment there is no sign of it. 35,000 dwt units CrossMed were fixed around $6,500/7,000/d. TA trips for Handies were fixed at $8,500/d level to USG and around $6,500/7,000/d to ECSAm. Supramaxes were still at $6,500/7,000/d level while Ultramaxes were still at $7/7,250 to USG direction. Fronthaul on Handies remained at $10,500/11,000/d for trips to China while Supramaxes remained at $14,000/d and Ultramaxes at $15,000/d, but slowing.
Handy (USA/N.Atlantic/Lakes/S.America)
A stable week with rates increasing slightly at the end of the week despite the tonnage list increased. A trip to Spore/Japan with grains was fixed at $20,000/d on an Ultramax. On the same size a trip to India with coal was done at $18,100/d while petcoke to MEG/India was covered at $23,000/d. A trip to NCSAm with grains was fixed at $20,000/d on a Ultramax and a trip to E Med with petcoke was fixed at $23,300/d on a similar vessel. On Handies a trip to Italy with petcoke was done at $12,270/d on a 33,000 dwt.
Rates increased throughout the week despite the tonnage list remained almost unchanged, a slight reduction was recorded for Handies. Demand was slightly improving, especially for larger units benefitting some additional COA activity. A 61,000 dwt built 2014 was fixed at $15,500/d basis dely Tema 17/18 Dec redely China. A 47,000 dwt was fixed a tct dely Benin and redely EC India at $10,250/d. A 33,000 dwt built 2011 was fixed basis dely aps Recalada and redely W Africa at $16,000/d, showing higher rates than FH. Fronthauls from W Arica to China were fixed around $14,500/d on Supramax.
Banchero Costa and Co Spa
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