Weekly detailed analysis of world shipping freight markets for all major routes for June 17– June 24, 2024.
Capesize (Atlantic and Pacific)
A busy week marked by significant developments with quite a strong sentiment due to demand and derivatives. Increased activity with several fixtures concluded at substantial higher levels in comparison with the previous week. In the Pacific, Rio Tinto fixed three TBN vessels to load its cargoes of 170,000mt +/- 10% iron ore from Dampier to Qingdao, laydays 4/6 July, 5/7 July and 6/8 July, respectively at freight rates of $10.55, $10.90 and $11.00/mt. Cargill fixed an Ocean Longevity TBN vessel to load a cargo of 160,000- 170,000mt +/- 10% iron ore from Port Hedland to Qingdao, laydays 9/11 July at $11.25/mt. Simec fixed a Classic TBN vessel to load a cargo of 170,000mt +/- 10% iron ore from Whyalla to Qingdao, laydays 19/25 July at a freight equivalent to C5 July average x 1.39. Costamare fixed the MV Star Boston (177827 dwt | 2007 built) to lift a stem of 170,000mt +/- 10% iron ore from Whyalla to Qingdao, laydays 11/15 July at $15.25/mt. Libra fixed a TBN vessel to load a cargo of 150,000mt +/- 10% coal from Indonesia to India, laydays 27 June/3 July at $9.00/mt. Deyesion fixed the MV Mineral New York (175841 dwt | 2010 built) basis delivery Gwangyang 22 June onwards for one timecharter trip via Newcastle to China at $28,000/d, plus an option for India redelivery at $24,000/d. In the Atlantic basin, Vale fixed the MV Cape Astra (169232 dwt | 2009 built) and the MV Bulk Mexico (176354 dwt | 2010 built) to load cargoes of 170,000mt +/- 10% iron ore from Tubarão to Qingdao, laydays 11/15 July and 16/20 July, both at a freight rate of $26.50/mt. Cosco fixed the MV Mineral Hokusai (207219 dwt | 2015 built) to lift a stem of 170,000mt +/- 10% iron ore from Tubarão to Qingdao, from 29 July onwards at $27.50/mt. Oldendorff fixed the MV George Island (181352 dwt | 2011 built) with ETA Tubarão 13 July and the MV SAMC Transporter (206306 dwt | 2006 built) with an ETA Tubarão 15/17 July, to lift stems of 170,000mt +/- 10% iron ore, both at $26.50/mt. Trafigura fixed the MV Lady Dawn (211041 dwt | 2022 built) to load 180,000-190,000met +/- 10% iron ore from Sudeste to Qingdao in the mid $27.00’s/mt freight level. NSC fixed the MV Heng May (182268 dwt | 2024 built) to load a cargo of 190,000mt +/-10% iron ore from Pointe Noire to Japan, laydays 11/20 July at $30.30/mt. Rio Tinto fixed a TBN vessel to load its cargo of 170,000mt +/- 10% iron ore from Seven Islands to Qingdao, laydays 7/13 July at $32.70/mt and another TBN vessel for 170,000mt +/- 10% iron from Seven Islands to Oita, laydays 10/16 July at $32.55/mt. Out of South Africa, Assmang Ore & metal fixed a TBN vessel to load a cargo of 170,000mt +/- 10% iron ore from Saldanha Bay to Qingdao, laydays 3-7 July at $18.50/mt.
Panamax (Atlantic and Pacific)
The positive trend from last week did not survive this week and rates were negatively adjusted due to lack of cargoes especially from N Atlantic Regions – both on mineral and grain side. P1A_82 closed the week at $14,890/d with a negative delta of $800 p/d on w-o-w basis – not a lot of fixtures have been reported with the highlight of the week being a modern Kamsarmax achieving $15,500/d dop Gib redely Skaw/Gib for a grains TA RV. Regarding P2A_82, mainly grains cargoes were in market with a decent amount of vessels being traded from NCSA region – where a 2007 built Kamsarmax was reported fixed for $26,000/d dop San Ciprian for a trip via Itaqui with redelivery China. Mixed feelings coming from P6 where there was quiet a significant disparity between first and second half of July dates, earlier tonnage picking up rates higher than end July arrivals, one of the reasons is the limited supply of vessels for the remaining 1/15 July cargos. The route closed off at $18,000/d, however we are expecting the next week to see a further decrease as the increasing availability of vessels for end July cargoes has already reflected in the market with grain houses bringing bids closer to $17,000/d bki equivalent.
During the first half of the week a strong P6 was the main driver for the Pacific market - vessels open S China/SE Asia were keen to ballast to get P6 returns, so Pacific charterers were forced to pay up to secure tonnage for their cargoes. Generally, NoPac/Aussie RV were fixed in the region of $16,000/d bki CJK and Indonesia was fixed around $15,000/d from S China on OA Panamax. During the second part of the week, P6 slowed and Pacific charterers took the opportunity to lower their bids: Australia/NoPac were fixed/bidded in the region of $15,000/d bki and Indonesia went as low as $13,000/d from S China.
Handy (Far East/Pacific)
Slightly increasing rates especially on Supramax. A 56,000 dwt with dely S China was reported at $12,000/d for a trip via Indonesia to Thailand, a 61,000 dwt with dely N China was done at $15,000/d for a trip via Philippines to S China with nickel ore and a 52,000 dwt with dely N China took $13,500/d for a trip via Japan to Spore. A 58,000 dwt with dely S Korea was fixed at $15,000/d for a trip via COGH to Continent and a 58,000 dwt with dely mid-China was done at $15,000/d for a trip to W Africa for the first 65 days and 17,000/day thereafter. On Handies, a 38,000 dwt delivering N China took $15,500/d for a trip to MEG with steels and a 37,000 dwt with dely Spore was fixed at $12,000/d for a trip via Indonesia to Continent with steels.
Handy (North Europe/Black Sea/Mediterranean)
The positive trend showed last week continued also during this one both on Handies and Supramax thanks to the injection of fresh cargoes and decreasing tonnage. Lot of scrap as often happened during the past weeks. The one being exported from Hamburg was fixed on 58,000 dwt open Ghent for a voy to Marmara Sea at tce around $14,250/d aps registering almost a +10% w-o-w basis while scrap from ARAG was fixed on a 57,000 dwt at $20,500/d aps for a trip to Bangladesh. Regarding steels a 38,000 dwt vsl was fixed for a trip to West Africa int Angola at 13k dop Flushing. To conclude, a 58,000 dwt was fixed dop Ghent for a trip to China via Norway at $23,000/d registering almost a +20% compared to similar trips fixed in the end of May.
The small recovery that was seen last week in the Mediterranean and Black Sea market this week materialized much more strongly. All routes recorded a considerable recovery, partly due to the lack of tonnage, but above all due to a constant injection of cargoes from operators booked in the previous weeks at low levels. Shipowners who resisted fixing last week have certainly seen their wait rewarded even if this situation is creating a stand off on July-August cargoes for which charterers could decide to wait to fix until market soften again. 35,000 dwt Handies for CrossMed were fixing around $12,500/13,000/d basis Canakkale, a shade more for trips to Continent, some charterers were looking to get the vessels for short period which was paying $11,000/d level if redelivery Atlantic. Supramaxes CrossMed were seeing numbers close to the ones of the Handies, maybe a tick less, but there were less cargoes and vessels open in the area. For what concerns TA trips Supramaxes were fixed at $12/12,500/d to USG, Handies were fixed at $12,500/13,000/d to USG and around $10,000/d to ECSAm. Fronthaul was again pretty bullish considering the Pacific market slowed and Supramaxes were fixing at $23,000/d to China, while Handies were again getting closer to $20,000/d.
Handy (USA/N.Atlantic/Lakes/S.America)
The market in US Gulf started to decrease from mid-week onwards, owners failed to achieve their targeted hire levels as charterers refuse to pay the same and decided to pay less. Ultramaxes fixed a trip to India with petcoke at $29,000/d, grains to Japan at $26,250/d while a trip to Pakistan with coal was done at $28,000/d. On TransAtlantic a Supramax fixed a trip to Continent with woodpellets at $20,000/d while grains to Algeria were covered always on Supramax at $25,000/d. On Handies a 34,000 dwt fixed 2 / 3 laden legs at $15,500/d and a trip to NCSAm with grains was done at $17,000/d on a 37,000 dwt.
The trend was weaker compared to the previous week especially towards the end of the week. Nice 38,000 dwt basis dely Argentina for a trip with grains to Cont/Med were fixed around $17/18,000/d basis dely aps. Fronthaul rates for nice and shallow 38,000 dwt was assessed around $20/21,000 aps depending on the specs basis dely ECSAm for a tct with grains redely Spore/Jpn range and duration 65 days wog. On the bigger sizes not many fixtures were reported. There was a rumour that fronthaul was exchanged around $17,500/d + 750,000 gbb basis dely aps for tct grains redely Spore/Jpn range for duration 65 days wog.
Handy (Indian Ocean/South Africa)
With more activity from MEG/WCI region rates improved. Owners seemed not to drop their numbers with stronger demand and were getting fixed around $2/3,0007d more than the previous week. Early in the week a 56,000 dwt fixed $13,000/d for iron ore to China basis dop New Mangalore. Thereafter a 63,000 dwt was reported fixed for a trip to China basis dely WCI at $18,000/d. Similar rates were heard for 3 other Ultramax from WCI, which implies strong cargo movement. A 57,000 dwt fixed, around $15,000/d for a coastal trip within WCI with salt. For the usual MEG-Bangladesh limestone aggregate trade a 63,000 dwt open UAE fixed at $20,500/d levels and another 58,000 dwt fixed a similar biz at $18,000/d which was an improvement of $1/2,000/d compared to previous week. Rates dropped from ECI with less cargoes to China. A 57,000 dwt open ECI was fixed at $10,000/d dop for a trip via Indonesia with coal to India. Another 56,000 dwt open Chittagong was heard at $10,000/d levels for a trip to China with iron ore in bulk. Not much came to light from S Africa, except a 61,000 dwt eco vessel fixed at $17,000/d dop Sri Lanka for a trip via S Africa to F East.
Banchero Costa and Co Spa
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