The sentiment of Panamax/Kamsarmax owners has improved in the
South Atlantic
after May 20. This is solely due to increased grain offer on front-haul routes with June laycans. However, owners are still unable to push rates up due to weak transatlantic market and ongoing ballaster inflow. Meanwhile, freights have sagged in the
North Atlantic
. The local F/H segment has weakened given slower coal shipments to China and India, while the transatlantic market remains inactive similarly to the southern part of the basin. “The cargoes are limited primarily from USEC and rates are drifting,” a broker mentioned. As a result, rates have dropped by $1-2k daily and $1-2/t on all routes. Demand for Panamax fleet has decreased to a minimum in the Black and Mediterranean Seas, triggering another $0.25-0.5/t decline in freight rates.
Owners working in the
Asia-Pacific
region are slightly more optimistic due to brisker exports of Australian coal and NOPAC grain. In addition, everyone believes the tonnage list has decreased slightly in SE Asia (not least due to lively outflow to ECSA in the last few weeks). However, the Vesak Day in Singapore in the midweek did not allow ship owners to raise freight levels.
***
Rates for shipments from ECSA ports may go up in the near future as June cargo offer will certainly continue to increase. “A lot of charterers are looking to cover their prompt requirements, which allows owners to start rising offers,” a broker mentioned. Meanwhile, the outlook is negative in the North Atlantic. Sharpening cargo/tonnage imbalance amid slower shipments of USEC minerals will continue to put pressure on transportation costs from regional ports. There are no preconditions for improvements in the Mediterranean Sea and the Continent at least until the start of the new grain season in Europe.
Brisk coal traffic may continue to support ship owners in the Asia-Pacific region as sales of Australian coal to Asian importers remain healthy. Note, however, that coal stocks of Chinese Six Power Groups keep rising significantly. “In coming days, the situation will depend on ECSA and FFA markets. Overall feeling is optimistic. Meanwhile, TCE for forward cargoes looks decent,” a broker shares his optimistic expectations.
Check latest fixtures, ideas and news from Panamax / Kamsarmax market using the following links:
Trade improved on ECSA Panamax/Kamsarmax market
Limited cargo offer drags down Panamax/Kamsarmax rates ex USG/USEC
Panamax/Kamsarmax segment relatively healthy in Asia-Pacific region
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Panamax freight assessments on main trade routes
Coal, 70,000t, USG - Rotterdam, $/t
Soybean (sf 52'), 60,000t, Santos - Northern ports of China, $/t
Coal, 70,000t, South Kalimantan - East Coast of India, $/t
Coal, 75,000t, Richards Bay - Fangcheng, $/t
