Chartering market at hand: Handysize and Supramax/Ultramax // week 26

The South Atlantic Supramax/Ultramax and Handysize markets are softening. Despite healthy grain exports, owners have to make concessions amid the ballaster inflow from Europe and USG/USEC. By the end of the week, Supramax F/H rates have sagged by $1-2k daily and $1-3/t, while transatlantic levels generally hold steady (owners sometimes even manage to insist on slight upturns as tonnage transferring to Europe does not look like an attractive option at the moment). Handysize rates on all routes have dropped by $2k daily and $2-4/t.
The USG front-haul market has stabilized after a prolonged decline. Discussing transatlantic deals, owners even manage to raise rates despite the outlined relative cargo/tonnage balance in the area. The Handysize segment has also stabilized following tonnage outflow to ECSA.
After a slight upturn seen last week, activity has now decreased slightly again in the Black and Mediterranean Seas. Demand for Handysize fleet is supported only by grain shipments on inter-Med routes, while Supramax owners get help from few shipments of construction cargoes to West Africa and the USG. Time-charter rates have decreased by $0.5-1k daily over the week, while voy-bss freights have dropped by $0.5-1.5/t.
The shortage of cargo offers remains very acute in the Baltic & Continent. Owners consider every opportunity to transfer carriers to another region. Rates seem to have reached the bottom, although many charterers are voicing extremely low ideas. Some recovery in steel scrap traffic added a note of optimism to Supramax owners, although the relevant tonnage list is quite long, and rates hold steady.
Supramax/Ultramax and Handysize rates have started sliding down again in the Indian Ocean amid tonnage oversupply off the west coast of India. In the Persian Gulf, time-charter rates have dropped by $2-3k daily, while short-haul transportation costs of construction cargoes and fertilizers have declined by $0.5-1.5/t. Shipping rates ex South Africa have sagged by $0.5-1/t.
The SE Asian market sentiment has turned negative as a result of a slowdown in shipments of coal from Indonesia to both China and India. The cargo traffic from Australian ports is also limited, which, together with excessive vessel list in the region, allows charterers to confidently push rates down. By the end of the week, Supramax/Ultramax rates have decreased by $3-4k daily and $2-3/t, while Handysize levels have sagged much less noticeably, by $0.5k daily and $0.5-1/t.
Having dropped by another $2-3k daily late last week, rates have now stabilized in the Far East. Players note increased offer of steel products ex CJK ports, while the offer of grain and other cargoes from NOPAC remains limited. Meanwhile, the negative trend continues in the Handysize segment due to a further slowdown in cargo traffic from China and Japan, as well as given negative trends in SE Asia. Corresponding rates have dropped by $1k daily and $0.5-1/t.
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Next week, rates are likely to stay under pressure in the South Atlantic as the July tonnage list so far exceeds the combined offer of grain and other cargoes. By contrast, the Gulf of Mexico market is showing some preconditions for a slight rate upturn, namely the expected increase in grain and petcoke exports from the US in July, especially on front-haul routes. Transatlantic rates are likely to grow due to limited number of operators wishing to reposition tonnage to Europe. In the next couple of weeks, the cargo traffic is not projected to perk up in the Black and Mediterranean Seas. The new grain season in the EU and Russia is just beginning, with any upturn in shipments expected no earlier than late July. As before, Ukrainian grain will be exported in large volumes only from Constanta, which is still working at full capacity. Despite the liberation of the Snake Island by the Ukrainian armed forces and Russian propaganda statements, there are no signs of possible resumption of exports from Ukraine’s deep-water ports. The Indian Ocean Supramax/Ultramax market is likely to show a short-term activity increase ahead of the long holiday weekend, but this will hardly affect the overall trend. The Asia-Pacific market is likely to stay under pressure amid the surplus of vessels in all areas.

Spot/ppt freight assessments on main trade routes ex BlSea & Med

Terms FIOS 1/1.

Spot/ppt freight assessments on main trade routes ex Baltic & Continent ports

Terms FIOS 1/1.

Spot/ppt freight assessments on main trade routes ex USG & ECSA

Terms FIOS 1/1.

Spot/ppt freight assessments on main trade routes ex Asia-Pacific

Terms FIOS 1/1.

Spot/ppt freight assessments on main trade routes ex Indian Ocean

Terms FIOS 1/1.