Weekly detailed analysis of world shipping freight markets for all major routes for September 2 – September 9, 2024.
Capesize (Atlantic and Pacific)
The Capesize market extended gains due to strong demand and market confidence in view of higher freight derivatives, the week ended on a stronger and positive note overall. In Pacific, Rio Tinto fixed 5 x TBN vessels to load 170,000mt +/- 10% iron ore from Dampier to Qingdao, laydays 20/22 September, 21/23 September, another one 21/23 September, 22/24 September and 23/25 September respectively at freight rates of $11.15, $11.00, $11.40, $11.50 and $11.70/mt. FMG fixed five TBN vessels to lift its cargoes of 160,000mt +/- 10% iron ore from Port Hedland to Qingdao, for laydays ranging from 18 to 22 September at freight rates of $11.90, $12.00 and low $12’s/mt including the MV Florida (182000 dwt|2022 built). BHP fixed a TBN vessel to load its cargo of 160,000mt +/- 10% iron ore from Port Hedland to Qingdao, laydays 22/24 September at $11.20/mt. Jera fixed a Swissmarine TBN vessel to load 160,000mt +/- 10% iron ore from Port Hedland to Qingdao, laydays 19/21 September at $11.70/mt. Multimax fixed the MV Rosemary (179,742 dwt | 2010 built) to lift a stem of 150,000mt +/- 10% coal from Abbot Point to Rizhao, laycan 26 September/5 October at US12.00/mt. In the Atlantic basin, Polaris fixed a Ssangyong TBN vessel to load a cargo of 170,000mt +/- 10% iron ore from Tubarão to Qingdao, laycan 5/15 October at $28.20/mt. Costamare fixed the MV Cape Kensington (203,512 dwt | 2006 built) with an ETA basis Brazil 4/6 October to lift a stem of 190,000mt +/- 10% iron ore from Tubarão to Qingdao at a freight of $27.00/mt. CSE fixed an Oldendorff TBN vessel to lift a cargo of 150,000mt +/- 10% iron ore from Ubu to Taiwan, laydays 26/30 September at $31.60/mt. Oldendorff fixed the MV CSK Zephyr (207,805 | 2018 built) for 190,000mt +/- 10% iron ore from Tubarão option West Africa to China for early October laycan at $27.35/mt. Mercuria fixed a TBN vessel to load a cargo of 170,000mt +/- 10% iron ore from Tubarão option West Africa to China, laycan 6/10 October at $27.40/mt. ST Shipping fixed a TBN vessel to load a cargo of 160,000mt +/- 10% coal from Puerto Bolivar to Eren, laycan 16/25 October at a freight in the low $17’s/mt. Out of South Africa, Assmang Ore & Metal fixed a TBN vessel to lift a cargo of 170,000mt +/- 10% iron ore from Saldanha Bay to Qingdao, laydays 20-24 September at $20.69/mt.
Panamax (Atlantic and Pacific)
The negative trend originating from a depressed August/early September continued. The Panamax Atlantic market witnessed a further decline with little resistance from owners from both Southern and, especially, Northern regions. P1A_82 closed the week below $8,000/d, and P2A_82 was getting closer to $20,000/d due to a surprisingly long tonnage list worsened due to the presence of multiple Russian players unable to find firm cargoes from the Baltic region. P6_82 was not very active with rates hovering in the low $12,000s/d basis dely Spore, with aps rates for Kamsarmax recorded in the $15,000/d + 500,000 gbb region.
The market generally started in a slow mood, the activity was minimal, the numbers of ballasters increased consistently and, consequently, rates were on a downtrend. The situation changed approaching the end of the week when more cargoes were quoted giving a positive impulse. This was particularly true in NoPac where at the beginning of the week Kamsarmax were fixed in the $12,000s/d basis dely dop N China/S Korea and then on Thursday an 81,000 dwt built 2019 was reported in the $15,000s/d basis dely CJK. Australia followed the same trend, starting in the low teens for N China via EC Australia to China and closing $15/16,000/d on Friday. From Indonesia the improvements were relevant as well with the beginning of the week in the $8/9,000/d for standard lme basis dely S China and then on Wednesday a 75,000 dwt built 2005 went on subs at $11,000/d basis dely HK.
Handy (Far East/Pacific)
Rates remained stable, again. A 61,000 dwt with dely Vietnam was reported at $16,000/d for a trip via Indonesia to China and a smaller Ultramax with dely Thailand was done at $14,750/d for a trip via Indonesia to China. Towards West, a 62,000 dwt with dely Thailand got $15,250/d for a trip to Bangladesh with clinker, a 56,000 dwt with dely mid-China was fixed for a trip to MEG at $12,750/d for the first 55 days and $16,250/d balance and a 58,000 dwt with dely N China was fixed for a trip to W Africa with steels at $14,500/d for the first 60 days and $16,000/d balance.
Handy (North Europe/Black Sea/Mediterranean)
Little activity in the area with tonnage piling up and not many cargoes available. A 23,000 dwt was reported on subs for a short trip with petcoke from ARAG to Denmark around $10,500/d aps, another slightly larger petcoke cargo received offers between $12/14,000/d with delivery UK. From Baltic a 34,000 dwt was fixed for a trip with grains basis dely Skaw via Baltic to Luanda at $12,500/d.
Very slow, but inexorable decline that began at the end of June. It is a slowdown at times imperceptible. Cargoes from Ukraine increased, but those from Romania and Bulgaria seem to disappear, at least on a spot/prompt basis. The minimal fluctuations that are recorded depend more on changes in the reference markets of the discharging areas than on changes in the supply from the Mediterranean and the Black Sea, which remains flat. On Handysize CrossMed rates were exchanged between $7/8,000/d, like trips to Cont. The idea of leaving the Med area is strong for Owners and Supramaxes were not getting more than $9,500/d. Rates for TA trips on Supramax were softer deleting the small improvements seen the previous week with fixtures around $9,500/10,000/d to USG and $7,500/8,000/d to S America. Handies were seeing rates around $7,000/d to ECSAm and $9,500/10,000/d to USG. Fronthauls on Supramax remained at $19,000/d and Handies were still at $14,000/d.
Handy (USA/N.Atlantic/Lakes/S.America)
Rates started falling during the week due to a lot of tonnage in the area. At the beginning of the week the grain trade to Spore/Japan range on Ultramax was covered at $27,000/d while at the end of the week rates were at $25,000/d. On TransAtlantic, a trip to Lisbon with grains was fixed at $20,550/d on a Ultramax, while clean cargoes to E Med were covered on Supramax around $17/17,500/d. On Handies a CrossUSG trip to NCSAm was done at $15,500/d on a 39,000d dwt, and grains to Turkey were covered on a 38,000 dwt at $19,000/d. recorded $16,500/d for a trip from USG to Cont with grains and $22,000/d for a trip from USG to US WC with grains.
The market was soft compared to the previous week. A nice, shallow, index type 38,000 dwt was estimated $16,750/d basis dely aps for a tct with grains to Cont/Med range, duration 40 days wog. Fronthaul was mute on smaller sizes. A 63,000 dwt was estimated around $21,000/d basis dely W Afica for a tct via ECSAm to Spore/Jpn range while the same size on TA was estimated around $13,750/d basis dely dop W Africa.
Handy (Indian Ocean/South Africa)
Another week of falling rates in Indian Ocean due to a lack of cargoes. A 61,000 dwt achieved $18,500/d basis dely aps Fujairah for a trip to Bangladesh with aggregates. CrossMEG iron ore and slag trades were discussed on standard 56/58,000 dwt ships around $14/14,500/d basis dely within MEG. Rates from S Africa declined steeply, with a non-eco 63,000 dwt fixing at $18,000/d + 180,000 gbb to F East, a 57,000 dwt fixed at $16,500/d + 165,000 gbb and a 56,000 dwt was rumored at $15,250/d + 152,500 gbb. Towards the end of the week a very eco 60,000 dwt however was heard to have fixed at $18,500/d + 185,000 gbb for a trip to Pakistan/WCI range, which was premium compared to the other fixtures.
Banchero Costa and Co Spa
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