Weekly detailed analysis of world shipping freight markets for all major routes for July 29 – August 5, 2024.
Capesize (Atlantic and Pacific)
Despite the major mining companies were quite active, rates kept their downtrend. The week ended on a diverse note with the Atlantic quiet and the Pacific showing timid improvements. Iron ore futures prices rose, supported by Rio Tinto’s optimistic demand outlook and continued hopes of more stimulus from China. In the Pacific, Rio Tinto fixed three TBN vessels to load its cargoes of 170,000mt +/- 10% iron ore from Dampier to Qingdao, one with laydays 18/20 August and two with laydays 17/19 August, respectively at freight rates of $9.75, $9.45 and $9.45/mt. FMG fixed three TBN vessels to load its cargoes of 160,000mt +/- 10% iron ore from Port Hedland to Qingdao. One with laydays 18/20 August at $9.95/mt, another with laydays 15/16 August also at $9.95/mt and the third one with an ETA 15th August at $9.50/mt. Vale fixed a TBN vessel to load its cargo of 170,000mt +/- 10% iron ore from TRMT to Son Duong, laydays 8/10 August at $6.50/mt. In the Atlantic basin Vale fixed up to five TBN vessels for its cargoes of 170,000mt +/- 10% iron ore from Tubarão to Qingdao, laydays around 5/18 September with rates in the region of $23.50 level/mt. Oldendorff fixed the MV Star Europe (180,668 dwt | 2016 built) to lift a stem of 170,000mt +/- 10% iron ore from Tubarão to Qingdao, laydays 11/20 August $23.50/mt. Solebay fixed the MV Samc Transporter (206,306 dwt | 2006) to load a cargo of 185,000mt +/- 10% iron ore from Tubarão to Qingdao, laydays from 11th August onwards at $23.10/mt. Trafigura fixed the MV W Trader (175,879 dwt | 2009 built) to load a cargo of 170,000mt +/- 10% iron ore from Sudeste to Qingdao, laydays 15/16 August at $23.75/mt. Cargill fixed a Jera TBN vessel to lift a cargo of 170,000mt +/- 10% iron ore from Seven Islands to Rotterdam, laydays at the end August at $7.55/mt. A TBN vessel was awarded with the NSU Tender from Pointe Noire to Japan, laydays 18/27 August at $29.00/mt. Out of South Africa, activity was limited, and no fixtures reported.
Panamax (Atlantic and Pacific)
Definitely not an exciting week for the Panamax Atlantic market where activity was pretty much limited in both southern and northern regions with rates dropping especially for TA routes. P1A_82 closed the week with a negative $1,500 p/d on a w-o-w basis due to scarce mineral activity along with a tight tonnage count especially in cont/med areas – where owners were willing to discount in order to compete with spore ballasters (in order to secure quick rounds). P2A_82 saw a slight improvement in terms of activity with a few coal cgos coming out of USEC with rates averaging very high 20k dop cont. P6_82 route was characterized by mainly aps fixtures with bki levels averaging $19,000 + $900,000 – whereas bss spore p6 is heading towards lower $16,000/high $15,000 for end august dates.
Last week longer trips, like AustraliaChina, were fixed around mid/highteens depending on specs, on Monday a 2019 Kamsarmax with dely Kobe 27/30 July was fixed for a trip via EC Australia redelivery Japan at $17,000/d and on Friday a 2023 built with dely Kawasaki 3 August achieved $16,250/d to S China. Shorter trips, like Indo RV with dely S China, were done at low/mid-teens, on Tuesday a 2005 built Kamsarmax was done in the low $13,000/d basis dely Quanzhou early August, a rate similar to a 79,500 dwt built 2018 with dely Taichung 2 August later in the week.
Handy (Far East/Pacific)
Rates decrease slightly compared to the previous week, especially on Supramaxes while Handies remained more or less stable. A 56,000 dwt with dely Indonesia was reported at $19,000/d for a trip via Indo to China, a similar sized vessel with dely S China was done at $14,000/d for a trip via Philippines to N China with iron ore and a 58,000 dwt with dely Japan achieved $14,000/d for a trip via NoPac to SE Asia with soda ash. On backhaul, a 55,000 dwt with dely Thailand was reported at $13,000/d for a trip via Indonesia to WCI.
Handy (North Europe/Black Sea/Mediterranean)
A stable week after the increasing activity recorded during the previous one. To W Africa a 37,000 dwt was fixed basis dely Aarhus dop at $15,000/d for a tct via Baltic, a 35,000 dwt was fixed basis dely Skaw via Baltic at $17,000/d and another small Handy was heard agreeing around $11,000/d. On this trade rates were slightly higher. Towards USG a 38,000 dwt was fixed around $10/11,000/d aps Klapeida for a trip with fertilizers and a 32,000 dwt open Safi was fixed for a trip to ECSAm with dely Cont at $7,500/d. On Supras a 56,000 dwt open Liverpool spot was fixed from Puerto Rico to Turkey excluding BSea at $49/mt with scrap. Also a 55,000 dwt open Bremen early August was fixed basis dely passing Skaw for a trip via Baltic (no-Russia) with wheat redely S Africa at $13,500/d.
The market has been extremely quiet. Charterers were fixing at their targets and most of the times even a tick less. Primarily the lack of cargoes in the area, also following the blockade of exports from Turkey, has meant that there have been very few movements. It is now obvious that the surge in freight rates that was expected for the end of July did not occur, even if some still believe that the month of August could improve, at this point it is not clear on what basis someone can expect a better market in the short term. CrossMed trips were at $8,500/9,000/d level for 35,000 dwt tonnage, despite a fixture reported a tick over $10,000/d we think this was a lucky catch. Supramax were at $10/10,500/d level but slowing. TA trips on Supramax were fixed at $10,000/d to USG and $8/8,500/d to S America. Handies were seeing rates around $7,000/d for trips to Argentina or Brazil and $7,500/d to USG. Supramax on fronthauls were exchanging numbers around $20,000/d to F East and Handies were assessed in the mid-teens despite no fixtures were reported on that direction.
Handy (USA/N.Atlantic/Lakes/S.America)
The market kept its downward trend. This was primarily due to an increasing vessel supply coupled with a lack of significant improvements on the demand side. A trip to Spore/Japan range with grains was covered on Ultramax at $26,000/d while petcoke to India was fixed on Supramax around $26,000/d and on Ultramax in the mid/high $20,000s/d. The TransAtlantic fell, a trip to E Med with petcoke was done on Supramax at $24,000/d. Handies remained mostly unchanged, the petcoke trade was covered to Italy at $16,500/d on a 37,000 dwt while to N Brazil at $15,500/d on a 38,000 dwt.
The market remained firm during the week. A 38,000 dwt was fixed at $17,000/d basis dely aps ECSAm for a tct with grains to Cont/Med. No fixtures were reported on fronthaul on Handies, but modern 38,000 dwt were evaluated around $21,000/d basis dely aps to Spore/Jpn range. On larger sizes only a few fixtures were reported. A Tess 58,000 dwt got $11,000/d for a TA trip to Cont/Med basis dely dop W Africa. On fronthaul a Tess58 was estimated around $19,000/d basis dely dop W Africa for a tct grains to Spore/Jpn range.
Handy (Indian Ocean/South Africa)
For most part of the week the rates remained similar to week before in the area. 55k open wci fixed aps UAE 16250 for trip to bangladesh with limestone. For trips to WCI, a jap 60k open UAE was fixed at usd 18500, whereas another UMX a 61k fetched aps 19k for the trip. Another 63k was heard to have done 17500 aps UAE for redel WCI. Petcoke aqnd other cargoes were paying premium over the limestone stems, with a stx 57k fixing aps Oman port at usd 20k for redel WCI to carry Petcoke. For trips to china the rates kept dropping during the week, a 57k vsl open WCI fixed 14k APS early in the week. later, another supra was heard to have fetched only around 12k for similar trip to china with salt. For bhaul, a 56k was fixed at 11k bss aps Pakistan port for trip redel tamatave at usd 11k. One 52k dwt was fixed at 9k bss fujairah for trip to wafr with split rates. a 63k open wci was fixed for 2-3ll at usd 19250 levels and another one fetched 17750 for period 5/7 mos. Rates remained low from eci with a 56k dwt open chittagong fixing usd 12k for trip via indonesia back to bangladesh. another 56k dwt fixed at 10k levels for similar coal biz with redel eci. Not much was heard from safr, a 60k vsl was fixed aps safr at 22k + 220k gbb for trip to china, whereas another 63k vsl fetched 20250 aps safr + 200k gbb for similar destination.
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