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• US Gulf / US East Coast (USG/USEC): The holiday season led to a subdued market, with limited activity. Only a few “dirty” cargoes emerged from the East Coast or trips on West Coast-bound routes paying better. However, a busier week is anticipated as the market regains momentum, despite the current abundance of available vessels.

• East Coast South America (ECSA): Despite the festive lull, ECSA maintained strong activity levels, especially for period charters. With robust demand, a post-holiday surge in activity is expected, keeping this region a bright spot in the Handysize sector.

• Continent: Festive quietness dominated the Continent, marked by weak demand and a lengthy vessel list. Some owners repositioned their vessels to Brazil and the West Mediterranean in search of better opportunities. Encouragingly, interest in period charters picked up, setting the stage for increased activity next week, although rate improvements remain uncertain.

• Mediterranean: The year kicked off actively, particularly in the Western Mediterranean, supported by demand from Eastern areas. However, oversupply in the region capped any upward movement in rates. A reduction in vessel availability is crucial for short-term improvements.

• Middle East Gulf / India (MEG/India): The festive period dampened market activity, resulting in a flat week. As the holidays fade, a moderate uptick in activity is expected in the coming days.

• Southeast Asia / Far East (SE Asia / FEast): Both northern and southern regions experienced a quiet week, with limited opportunities for owners. Some operators accepted fixtures with long waiting times to stay active ahead of the Chinese New Year (CNY). While there was some interest in period charters, the outlook for next week remains cautious.

Ultramax Market Overview

• US Gulf (USG): The market witnessed some optimism due to orders bound for Asia and a reduced number of ballasters. However, the lack of Transatlantic cargoes tempered the enthusiasm. With fewer ballasters than before, the market is expected to stay firm next week.

• East Coast South America (ECSA): Tight vessel supply sustained a firm market, particularly for Transatlantic trips. This positional advantage is expected to persist in the near term.

• Continent: The holiday season stalled market activity, leading to a rise in vessel supply and downward pressure on rates. A notable boost in demand is necessary for any improvement in rates next week.

• Mediterranean: Despite increased demand, particularly in the Western Mediterranean, oversupply from previous weeks continued to weigh on rates. The market is likely to remain under pressure in the short term.

• South Africa (SAFR): The market moved at a sluggish pace without notable changes during the week. While activity is expected to pick up next week, it remains uncertain whether this will translate into improved rates.

• Middle East Gulf / India (MEG/India): A quiet week marked by limited activity is expected to shift slightly as the pre-Chinese New Year period approaches. A moderate uptick in activity is anticipated before January 29th.

• Southeast Asia / Far East (SE Asia / FEast): The sentiment remained bearish, with minimal fresh requirements and charterers relying on their own tonnage. This increased pressure on the market, and no significant improvements are expected before the CNY season.

Looking Ahead

The shipping markets are gearing up for a busier start to the year after the seasonal slowdown. While some regions display promise, others remain subdued due to oversupply and weak demand. As we move closer to Chinese New Year,* market dynamics may shift, bringing new opportunities for owners and charterers alike.

*the Chinese New Year, also known as the Spring Festival, will begin on January 29th and the public holiday will last from January 28th to February 4th.

Disclaimer

This report and the information contained herein are for general information only and does not constitute an investment advice