Weekly detailed analysis of world shipping freight markets for all major routes for April 13, 2020 – April 17, 2020
Capesize (Atlantic and Pacific)
The market kept recovering: 5TC average gained $3,000/d closing on Friday at $9,850/d. Tubarao-Qingdao route increased quite a lot gaining $1/mt: it closed at very low $12/mt for early May dates while at high $12/mt for end May dates, due to many players in the market looking for ships. Saldanha Bay-Qingdao followed the same path gaining more than $1/mt and reaching low $9/mt level. W Australia-Qingdao route was a bit under pressure but rates increased from Wednesday and closed on Friday at $4.95/mt, gaining basically $0.30/mt. W Australia-Qingdao route followed Tubarao-Qingdao trend: bigger volumes in the market and more Capesize units looking at Brazilian cargoes pushed rates up on W Australia-Qingdao. On the Atlantic side, the market was pushing: some fixtures brought Bolivar-Rotterdam and TransAtlantic RV respectively at low $6/mt and at $10,000/d, after gaining $1/mt and $5,000/d. Fronthaul followed a similar trend and closed on Friday at very high $21,000/d, after earning almost $1,500/d. Rates on short period improved in the low teens, due to a better FFA market.
Panamax (Atlantic and Pacific)
The week began sluggish after the Easter holidays, even if some deals were concluded. The index was positive in the Pacific basin and also rates from S America appeared robust for early May dates. The market in N Atlantic seemed to be firmer, but the main driver was still S America. As the week progressed activity slowed, which was surprising, but to be expected as the Orthodox Easter approached. Meanwhile, N Atlantic fixing lacked any real substance and largely concentrated on short Baltic trips which appeared popular for some shortterm coverage whilst rates from South America appeared a tick softer. Demand and rates appeared steady for bigger ships from E Australia and NoPac. Towards the end of the week, the Atlantic gained a little but appeared to only show Baltic or fronthaul fixtures including NCSAm which was pushing up a bit with a lack of committed tonnage. In Asia, despite the steady numbers for NoPac grain trips, rates softened in order to get cover. A 81,000 dwt with dely retro Haldia was fixed a tick under $10,000/d for a trip with redely Spore/Japan range, while a 82,000 dwt with dely Spore was fixed in the high $10,000/d for a trip via S America with redely F East. Another 82,000 dwt was fixed at $13,000/d + 300,000 bb basis dely aps ECSAm, for a trip with redely Spore/Japan range.
Handy (Far East/Pacific)
The market in F East kept maintaining a negative trend: indices showed a decrease of around $300/400/d both on Supramax/Ultramax and on Handysize segments. A bit more activity was reported compared to previous week: a 56,000 dwt with dely S China was fixed at $3,000/d for a trip via Vietnam to N China with clinker cargo, while a smaller Supramax with dely Indonesia was rumoured at $4,400/d for a trip with the same direction. A 56,000 dwt with dely Philippines was fixed at $5,000/d for a trip via W Australia to Spore/Japan range with sugar and a similar unit with dely S China was fixed at $1,000/d less for the same trip. A 57,000 dwt with dely Indonesia was reported at $3,500/d for a trip to Thailand, while a 56,000 dwt with dely Vietnam was rumoured at $1,000/d for a trip via Indonesia to Vietnam. No fixtures were reported in the Handysize segment, like previous week.
Handy (North Europe/Mediterranean)
The activity was stable in Cont both on Handysize and on Supramax segments: anyway, rates kept dropping and were still weaker compared to previous week. At the beginning of the week a 39,000 dwt was fixed at $5,500/d basis dely Cont for a trip to ECSAm. At the end of the week a nice 35,000 dwt was rumoured at $4,900/d basis dely Cont for a trip to ECSAm, while charterers evaluated the same unit around $4,000/d. In the Supramax segment, a 56,000 dwt Chinese type was fixed around $5,500/d basis dely dop Cont for a trip via Baltic to E Med with scrap cargo. The market in BSea/Med was pretty much unchanged: lack of demand, plenty of uncertainty and a long position list. TC rates were still on a slide, voyage rates were hit by low bunker prices. Orthodox Easter will probably affect activity levels, but not enough to lead to a surge next weeks.
Handy (USA/N.Atlantic/Lakes/S.America)
The Supramax and Ultramax segments showed a similar trend of previous week with still no signs of recovery expected: there was a lack of activity (or a very limited one) which was neutralized by the long position list reported in the area. On TransAtlantic RV Supramax units were still in the $4/5,000/d while Ultramax were fixed around $6,000/d. On Fronthaul, rates on Supramax decreased to $10,000/d and on Ultramax were rumoured at very low teens. A negative trend was reported in the Handysize segment: a bit more activity was recorded but the position list kept being on the long side. On TransAtlantic RV, 32/35,000 dwt units were rumoured at $6,000/d while larger 36/39,000 dwt were in the $8,000/d. The market in ECSAm was still in firm decrease: very few cargoes for prompt dates kept maintaining rates low. Rates for trip to ContMed went further down: 38,000 dwt units went from $6,500/d to $5,500/d. Trips to F East were still rumoured around $10,000/d: no fixtures were reported on Handies on this route. Rates on Brazilian coastal trips were fixed around $4/4,500/d. Supramax and Ultramax segments followed a similar trend and rates kept decreasing: rates on Supramax went from $7,500/d to $5,500/d for trips to ContMed, while rates on Ultramax decreased from $8,000/d to $6,500/d for the same trips. Rates on trips to F East decreased too: on Ultramax rates went from $11,500/d + 150,000 bb to low $11,000/d + 120,000 bb, while on Supramax rates went from $11,250/d + 125,000 bb to $11,000/d + 100,000 bb.
Handy (Indian Ocean/South Africa)
The market remained flat compared to previous week with similar rates. From MEG to ECI Supramax units were fixed around $5/5,500/d basis dely aps, a tick less with WCI redely. Ultramax units were fixed closer to $6,000/d from WCI to F East with sulphur/salt cargoes. From ECI were reported some iron ore cargoes to China direction, but rates remained on the downward trend sliding around $500/d to $2,500/3,000/d. A dolphin 57,000 dwt was fixed around $3,000/d basis dely ECI to China with iron ore cargo. Few period rates were also discussed in the area: a 56,000 dwt was rumoured to be fixed around not more than $8,000/d for 5/7 months. From SAfr rates remained flat for coal cargoes both to MEG/India range and to SE Asia. A Supramax open in Sri Lanka was rumoured at $4,000/d basis dely dop for SAfr coal to India, while an Ultramax was heard to be fixed (and then failed) at mid $8,000/d + 85,000 bb for SAfr coal to SE Asia.
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