Weekly detailed analysis of world shipping freight markets for all major routes for October 21 – October 28, 2024.
Capesize (Atlantic and Pacific)
Limited activity in both basins, freight rates and FFAs kept declining. The oversupply of tonnage kept rates under pressure and kept building up. In the Pacific, Rio Tinto fixed three TBN vessels to load its cargoes of 170,000 mt +/- 10% iron ore from Dampier to Qingdao, laydays 8/10 November, 9/11 November and 10/12 November, respectively at $8.75, $8.80 and $8.65 /mt. CSE fixed a Costamare TBN vessel to lift 135,000/140,000 mt of iron ore from West Australia to Kaohsiung, laydays 11/15 November, at a freight rate in the mid/high $8.00’s /mt. Winking fixed an Uming TBN vessel to load a cargo of 175,000 mt +/- 10% iron ore from Whyalla to Qingdao, laydays 25 December/8 January at $14.00 /mt. Richland fixed the MV Irene II (180,184 dwt | 2006 built) basis delivery Zhoushan end October for one time charter trip via Gladstone to China at $17,500 /d. In the Atlantic basin, Cosco fixed the MV Thalassini Agatha (182,307 dwt | 2011 built) to load a cargo of 170,000 mt +/- 10% iron ore from Tubarão option West Africa to China, laydays 18/22 November at $21.50 /mt. Oldendorff fixed a TBN vessel to load a cargo of 170,000 mt +/- 10% iron ore from Tubarão to Qingdao, laydays 15/24 November at $20.50 /mt and another TBN for same stem and route but laydays 25/30 November at $20.80 /mt. CSN fixed the MV Pacific Century (180,467 dwt | 2011 built) to lift a stem of 170,000 mt +/- 10% iron ore from Itaguaí to Qingdao, laydays 22/24 November at $21.75 /mt. The NSU controlled MV Spring Harmony (182498 dwt | 2024 built) was awarded the Posco tender of 150,000 mt +/- 10% iron ore from Port Cartier to Gwangyang, laydays 16/30 November at $26.45 /mt. Rio Tinto fixed a Berge Bulk TBN to load a cargo of 140,000 mt +/- 10% iron ore from Seven Islands to Djen Djen, laydays 12/18 November at $12.25 /mt. Vale fixed a Classic TBN vessel to load 150,000 mt +/- 10% iron ore from Tubarão to Misurata, laydays 19/28 November at $12.50 /mt. Out of South Africa, Assmang Ore & Metal fixed a Golden Ocean TBN vessel to load a cargo of 170,000 mt +/- 10% iron ore from Saldanha Bay to Dangjin, laydays 17/21 November at $14.78 /mt and a Capesize TBN vessel to load a similar stem from Saldanha Bay to Qingdao, laydays 12/16 November at $15.04 /mt. A TBN vessel was fixed to load a cargo of 150,000 mt +/- 10% coal from Richards Bay to Gangavaram, laydays 10/19 November at $10.00 /mt.
Panamax (Atlantic and Pacific)
The downtrend did not stop and freight rates on TA routes dropped by around $1,000/d. Lower demand from Asia had a strong impact especially for steelrelated commodities. The beginning of the week was very uncertain and the sentiment dragged throughout the week, the number of fixtures was fairly limited. P1A_82, TransAtlantic RV, saw some grain houses fixings between $9,300/d and $9,500/d BKI, but now most of the grain houses want to pay below that (around $9,000/d). There were also some fixtures for minerals, but even lower than grains. Business from N America/ USG/ NCSAm to the Far East was sluggish given the lack of demand, P2A_82 saw all fixings below $20,000/d BKI, mostly around $18,000/d. ECSAm voyage saw operators fixing an 80,000 dwt built in 2018 at $16,000/d + 600,000 gbb aps. The negative feeling is expected to go on through the current week.
The downward trend experienced over the last few weeks persisted. The tonnage list was quite hefty and demand fairly limited. Long P3A were fixed in the region of low/mid $11,000/d basis BKI dely CJK. Similarly, Indonesia RV was fixed in the very low teens basis dely S China.
Handy (Far East/Pacific)
Little activity was reported for larger units and rates kept declining slowly. Demand was limited with only a few fresh enquiries both in the northern and southern regions. Handy activity was very similar, in addition the tonnage started to build up quickly. A very modern Ultramax with dely CJK was fixed at $14,000/d for a trip via Indo to SE Asia, then a slightly smaller and older Ultramax achieved $15,500/d basis dely Port Kelang for a trip via Indo to China. A very modern 64,000 dwt scrubber fitted achieved $15,000/d basis dely Wakayama for a trip via Australia to Indonesia (scrubber benefit to Owners). A 58,000 dwt with dely Japan was fixed on a NoPac RV to SE Asia at $13,100/d. A modern 39,000 dwt with dely Japan was fixed at $15,500/d on a backhaul trip showing considerable strength on these trades confirmed by a modern 38,000 dwt with dely Qingdao fixed at $13,800/d for 70 days and $16,000/d balance for a trip to Cont/Baltic with steels.
Handy (North Europe/Black Sea/Mediterranean)
An active week in Continent with an injection of new cargoes pushing up rates especially for larger units. A 37,000 dwt open In Skikda fixed an CrossCont trip to N France with clinker at $12,000/d. Scrap from ARAG to E Med was fixed between $11/12,000/d on small Handies while Supramax and Ultramax were fixing $18/20,000/d. Many fixtures were reported towards W Africa, on Handies a 37,000 dwt open Bilbao was fixed basis dely Skaw via Baltic at $13,000/d and a 39,000 dwt open Rotterdam was fixed basis delivery Skaw via Mukran with grains at $13,000/d. A 63,000 dwt was fixed dop via Ust Luga redely Dakar with sulphur at $16,000/d and a 56,000 dwt was reported in the mid/low $20,000s/d aps Baltic Russia. Fronthaul was estimated around $20,000/d on Supramax and slightly more on Ultramax tonnage. To conclude, trips to WCCAm were heard in the mid-teens basis dely dop Cont on Handies and trips to ECSAm were fixing in the $8/9,000s/d.
Rates showed some signs of recovery on some routes. Towards the end of the week, however, we noticed an accumulation of ships in W Med which does not bode well for the coming week especially on TransAtlantic routes which normally see more demand from the area. 35,000 dwt Handysize stabilized at $10,000/d level for CrossMed or to Cont, Supramaxes were still at $12,500/d. TA trips to USG slightly improved to $11/11,250/d for 35,000 dwt types and to $12/12,250/d for Supramaxes. TA trips to ECSAm seemed lower around $8,000/d for Handies and $10,000/d for Supramaxes. A 30,000 dwt was fixed at $10,000/d to US EC, on premium over USG. Fronthaul trades increased during the week with Supramax tonnage around $19,500/d, Ultramax around $20,500/21,000/d, while Handies did not change from $13,500/14,000/d.
Handy (USA/N.Atlantic/Lakes/S.America)
Rates remained relatively strong, the number of vessels decreased and with the excellent supply of additional cargoes, tonnage availability will continue to be limited. The grain trade to Spore/Japan was covered on a Supramax at $21,500/d and on an Ultramax at $25,500/d while a trip to India with petcoke was fixed at $28,000/d on the same size. On TransAtlantic grain trades, a trip to Egypt was covered on a Supramax at $17,500/d, to S Africa at $22,750/d on an Ultramax while woodpellets to Cont were fixed at $22,250/d on a Ultramax. A trip to Red Sea with petcoke was done at $25,000/d on a Supramax. On Handies a trip to Spain with coal was covered at $15,000/d on a 39,000 dwt.
Rates were slightly stronger on Handies and stable on larger units. A 30,000 dwt was fixed for a trip to Caribbs at $14,000/d basis dely aps. A 40,000 dwt built 2024 open N Brazil was fixed basis dely prompt Vila do Conde for a tct with redey Norway at $16,500/d. A 40,000 dwt built 2023 was fixed basis dely Rio Grande for a tct redely Veracruz at $16,500/d. A fronthaul with dely W Africa via ECSAm paid around $17,500/d on a Supramax.
Handy (Indian Ocean/South Africa)
In MEG and WC India the market remained subdued. Supramax tonnage was still fixing in the low/mid teens basis dely aps MEG for trips to India/Bangladesh while Ultramaxes in the high teens on the same routes. From this area, on the period side Supramaxes were fixed in the low teens for short period and Ultramaxes around $15,000/d level. From S Africa Supramax tonnage was fixing around $14,000/d +140,000 gbb to India and Ultramax around $19,000/d + 190,000 gbb to China.
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