Weekly detailed analysis of world shipping freight markets for all major routes for October 14 – October 21, 2024.
Capesize (Atlantic and Pacific)
An uninspiring and tough week with the Capesize market declining sharply on a continuous lack of market confidence: supply outpaced demand. The negative sentiment is largely shared and no positive signs are expected soon. Nevertheless, the market may have reached a bottom in both basins and if the current fundamentals remain, it could take some time to come back on a positive note. In the Pacific, Rio Tinto fixed five TBN vessels to load its cargoes of 170,000mt +/- 10% iron ore from Dampier to Qingdao, one with laydays 1/3 November, two shipments with laydays 3/5 November and other two with laydays 4/6 November, respectively at freight rates of $9.35 for the first one, $8.90 and $8.80 for the other two and $8.90 and $8.95/mt for the last two. BHP fixed a TBN vessel to load its cargo of 160,000mt +/- 10% iron ore from Port Hedland to Qingdao, laydays 2/4 November at a freight level in the region of $9.05~$9.10/mt. FMG fixed the MV Lowlands Spirit (182,820 dwt | 2019 built) to lift a cargo of 160,000mt +/- 10% iron ore from Port Hedland to Qingdao, laydays 2/3 November at $8.70/mt. Cargill fixed a TBN vessel to load a cargo of 160,000mt +/- 10% iron ore from Port Hedland to Qingdao, laydays 1/3 November at $8.75/mt. In the Atlantic basin, Vale fixed a TBN vessel to load its cargo of 170,000mt +/- 10% iron ore from Tubarão to Qingdao, laydays 25 November/4 December at a freight rate in the mid $24’s/mt. Oldendorff fixed a Koch Newcastlemax to lift a cargo of 185,000mt +/- 10% iron ore from Tubarão to China, laydays 10/19 November at $22.00/mt. Polaris fixed a TBN vessel to load a cargo of 170,000mt +/- 10% iron ore from Tubarão to Qingdao, laydays 11/20 November at $22.00/mt. CSN fixed two TBN vessels to load its cargoes of 180,000mt +/- 10% iron ore from Itaguaí to Qingdao, laydays 12/14 November and 19/21 November, respectively at US24.20 and $23.00/mt. Solebay fixed the MV Leo Honor (174,000 dwt | 2005 built) to load a cargo of 170,000mt +/- 10% bauxite from Boffa to Huanghua, laydays 12/18 November a a freight rate in the low $22’s/mt. Out of South Africa, Assmang Ore & Metal fixed a TBN vessel to lift a stem of 170,000mt +/- 10% iron ore cargo from Saldanha Bay to Qingdao, laycan 5/9 November at a freight rate of $17.17/mt.
Panamax (Atlantic and Pacific)
A negative week with rates falling everywhere except from USG that remained very active with many cargoes for TA RV. Many fixtures were recorded, especially from the grain houses, at $10/10,500/d BKI basis Gib dely for TA RV. A 2019 built fixed an ECSAm TA RV at $18,000/d aps with redely ARAG/Denmark range. P2A_82 lost $ 1,700/d. Not many fixtures on this route last week. A 2019 was reported for a USG fronthaul at $25,000/d + $500,000 gbb basis dely aps 20/21 Oct redely Spore/Japan. A 2010 Kamsarmax open Flushing 18/19 Oct was fixed for a US EC coal fronthaul with redely India at $18,000/d. On P6_82 rates dropped by $ 1,600/d. Little on this route with only a few fixtures recorded. At the beginning of the week a 2011 built Kamsarmax was fixed at $16,750/d + 675,000 gbb basis dely aps ECSAm 26 Oct and redely Spore/Japan. Other fixtures were reported at high $11/low $12,000/d equivalent P6.
Sluggish activity with little demand, in particular from NoPac and Australia, which was reflected in declining rates. Kamsarmax tonnage open N China was reported at $14,000/d level at the beginning of the week and around $11,500/d on Friday for Australia RV. From Indonesia, a Kamsarmax open Mailiao was reported fixed to Spore/Jpn in the high $11,000/d. Kamsarmax tonnage was fixed on NoPac trades at $14/15,000/d basis dely N China on Tuesday and closed around $11/12,000/d level on Friday.
Handy (North Europe/Black Sea/Mediterranean)
A stable week in Continent and Baltic. A 34,000 dwt was fixed basis dely Skaw via Latvia to W Africa with grains at $12,750/d while a 39,000 dwt was fixed for a trip with dely dop EC UK via Continent to USG at $12,500/d. On Supramax a 56,000 dwt was fixed basis dely Amsterdam and redely E Med at $16,000/d.
Very limited activity in the area. The firm cargoes that left this week have been fixed rather quickly, but the tonnage list remained rather long. Rates moved downwards, but not decisively. 35,000 dwt Handysize tonnage lowered its expectations to $10,500/11,000/d for CrossMed or for the trip to Continent, Supramaxes levels were at $12,500/d at the end of the week. Russian cargoes became less attractive since the premium was not much for the risks. Most of the Owners refuse Ukraine trades these days. TA trips improved to $10,500/11,000/d level for Supramax tonnage and $11,500/12,000/d for Ultramaxes to USG and were still around $8/9,000/d to S America. Handy rates softened to $7,500/8,000/d for trips to ECSAm and $10/10,250/d to USG. Fronthauls on Supramax units were around $19,000/d on Supramax and close to $20,000/d on Ultramax while Handies remained at $13,500/14,000/d. An Handy was fixed $15,500/d to Bangladesh.
Handy (USA/N.Atlantic/Lakes/S.America)
The week started with an extraordinary increase of vessels, the market remained fairly stable, but towards the end of the week TransAtlantic levels were higher than fronthauls. A trip to Spore/Jpn with grains was fixed on Supramax at $21,500/d. On the TransAtlantic grain trade to E Med a Supramax was fixed at $21,500/d and to Egypt an Ultramax was done at $22,750/d. A trip to Med with petcoke was fixed at $25,500/d Supramax and woodpellets to Cont were covered at $22,000/d on a similar unit. On Handies a trip from USG to NCSAm with grains was done at $13,500/d on a 36,000 dwt.
Rates were slightly stronger on Handies and stable on Supramaxes. A 38,000 dwt was fixed basis dely aps Itaqui for a tct to BSea at $16,000/d. A 33,000 dwt built 2009 open Acu was fixed basis dely Maceio for a tct with redelivery Venezuela with sugar at $14,000/d. A W Africa fronthaul paid around $13,500/d + $350,000 gbb on a Supramax.
Handy (Indian Ocean/South Africa)
In PG and WC India the market continues its downward trend from the previous week. The availability of tonnage in the region has grown significantly compared to last week. Rates have been declining over the past few weeks, but it seems that the market will soon stabilize. Vessels opening in EC India are mainly supported by the stronger Indonesian market rather than local cargoes. However, delays are expected for ECI positions this week due to a cyclone. With the Panamax market weakening, Indonesian smx shipments are considering shifting to the pmx size.
Banchero Costa and Co Spa
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