Weekly detailed analysis of world shipping freight markets for all major routes for November 25 – December 2, 2024.
Capesize (Atlantic and Pacific)
A challenging week with substantial losses and uncertain fundamentals in both basins. Growing tonnage list and slow demand resulted in a market decline affecting confidence and causing rates to move into a downward trend which seems unlikely to improve in the short term. Limited activity and weak sentiment kept pressure. In Pacific, Rio Tinto fixed five TBN vessels to load its cargoes of 170,000mt +/- 10% iron ore from Dampier to Qingdao. Laydays 13/15 December at $10.10 /mt, 15/17 December at $9.80, 16/18 December at $9.40 and two shipments with laydays 17/19 December at $8.95 and $8.85 /mt. BHP fixed three TBN vessels to load its cargoes of 160,000mt +/- 10% iron ore from Port Hedland to Qingdao, one with laydays 12/14 December at $10.00 /mt and two with laydays 13/15 December at $9.70 and $9.25 /mt. In the Atlantic basin CSN fixed a TBN vessel to load a cargo of 170,000mt +/- 10% iron ore from Itaguaí to Qingdao, laydays 27/29 December at a freight level slightly below $22.00 /mt. Cosco fixed the MV Lucky Queen (182,354 dwt | 2024 built) to load a cargo of 170,000mt +/- 10% iron ore from Tubarão option West Africa to China, laydays 1/3 January 2025 at $19.60 /mt. NSC fixed a Cargill TBN vessel to load a cargo of 190,000mt +/- 10% iron ore from Pointe Noire to Japan, laydays 12/21 December at $26.75 /mt. Rio Tinto fixed a Koch TBN vessel to load a cargo of 190,000mt +/- 10% iron ore from Seven Islands to Qingdao, laydays 20/26 December at $26.65 /mt. Sino Africa fixed a Koch TBN vessel to load a cargo of 170,000mt +/- 10% iron ore from Freetown to Qingdao, laydays 21/25 December at $20.85 /mt. Alam fixed a TBN vessel to load a cargo of 170,000mt +/- 10% bauxite from Kamsar to Qingdao, laydays 24/30 December at $23.75 /mt. Out of South Africa, Solebay fixed the MV Mount Anosha (169,103 dwt | 2009 built) to load a cargo of 170,000mt +/- 10% coal from Richards Bay to Qingdao, laydays 12/18 December at $15.50 /mt.
Panamax (Atlantic and Pacific)
Rates remained on a downtrend on Atlantic routes. P1A_82 lost another $200/d and an 81,000 dwt built in 2011 was fixed passing Gib 20 Nov at $11,250/d for 2 laden legs with redelivery Atlantic. An 82,000 dwt built in 2016, scrubber fitted for charters account, was fixed with a big grain house aps SW Passero 12/15 Dec for a tct redely Skaw/Gib at $11,750/d +$250,000 gbb. P2A_82 was the Atlantic route that suffered the most losing some $800/d and a lme 2010 built with dely passing Falmouth 24 Nov was fixed for a tct via US EC redely India at $12,000/d. ECSAm fronthaul remained almost unchanged and an 81,000 dwt 2014 built was fixed aps ECSAm 12/15 Dec for a trip redely SE Asia at $13,300/d +330,000 gbb.
Weaker coal and minerals demand, particularly from China, affected rates negatively in Pacific. A 10 years old lme was fixed at $6,500/d basis dely Taiwan for a trip via Indo to India. At the end of the week a 75/10 cargo from Gladstone to Xiamen was fixed at $11.00/mt, reflecting a broader decline in the Pacific market. NoPac RV showed mixed results depending on specs, but very recently an 81,000 dwt built 2011 was fixed at $7,000/d basis dely Spore/Jpn range.
Handy (Far East/Pacific)
Handy rates kept facing downward pressure. In Pacific the number of cargoes was still limited while the tonnage list was building up. There was a feeling rates might have reached a bottom. Another slow week for larger units. While the start of the week showed some signs of improvement, it ended again on a negative note. Supramax tonnage with dely Singapore was fixing Indonesia- N China at $9,000/d. An Ultramax open N China was fixed for a NoPac RV at $11,500/d.
Handy (North Europe/Black Sea/Mediterranean)
Activity slowed with few fixtures reported and a lack of fresh cargoes that allowed the tonnage list to grow. On Handies, the scrap trade to E Med was reported between $11/12,500/d while TA trips were done between $9/11,500/d. Rates to ECSAm remained at levels similar to the previous week around $7/8,000/d. On Supramax activity was low as well. Trips with scrap to the Med were fixed between $14,500/16,000/d while fronthauls to Asia were fixed around $16,500/18,000/d.
The weren’t notable changes, but the trend remined a slow and constant descent on all the routes. At this stage we do not see a reason for a shock which might lead the market to a sudden change and the expectation for a quiet end of the year seems to be largely shared by market’s participants. 35,000 dwt Handysize tonnage was fixed at $8,500/d, -$500/d compared to the previous week, but TCE on some voyages already broke the $8,000/d mark. TransAtlantic trips on Handies remained at $9,500/10,000/d level to USG and around $7,500/8,000/d to ECSAm. On TA, Supramaxes were fixed at $7,500/8,000/d, while Ultramaxes were not above $8,500/d to USG. Fronthaul was weak as well, Handies were fixing at $12,000/d from W Med to China via COGH while Supramaxes went from $17/17,500/d to $16,000/d, Ultramaxes were around $17,000/d, but keep slowing.
Handy (USA/N.Atlantic/Lakes/S.America)
The market kept the same trend of the previous week. TransAtlantic trips were fixed with Supramax tonnage fixing around $18,000/d with coal to W Med and around $16,500/d with grains to E Med, woodpellets to UK were fixed at $16,000/d. Petcoke to ECSAm was fixed at $17,000/d on an Ultramax and to Spore/Jpn range at $20,000/d.
Handysize rates increased slightly due to the good number of fresh cargoes in the area that kept increasing. A 30,000 built 2012 open Rio de Janeiro 27 Nov was fixed at $16,000/d basis dely Recalada redely W Africa int. Matadi. A 36,000 built 2012 open Paranagua 20 Nov was fixed at $15,500/d basis dely Recalada redely S Brazil. A 37,000 dwt built 2012 open Recife 27 Nov was fixed at $15,000/d basis dely Recalada to Dakar with grains. A 38,000 dwt was reported at $13,250/d basis dely Santos to Casablanca with sugar. Rates for larger units increased at the beginning of the week, but then slid ending lower. A 60,000 dwt built 2017 was reported at $13,250/d + 325,000 gbb basis dely ECSAm 8/12 Dec to F East. At the end of the week fronthaul trips basis dely W Africa to China were fixed at $13,500/d, less the previous week.
Banchero Costa and Co Spa
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