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Weekly Market Report & Predictions: Handy and Ultramax Sectors 10th January 2025
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- Δημοσιεύτηκε στις Δευτέρα, 13 Ιανουαρίου 2025 07:34
Iakovos (Jack) Archontakis
TMC Commercial Director
Handysize Market Overview
• US Gulf / US East Coast (USG/USEC): The market saw robust activity as participants returned to their operations, with demand steadily increasing. However, the oversupply of vessels from previous weeks continued to pressure rates, keeping them at lower levels. An active week is anticipated going forward.
• East Coast South America (ECSA): As expected, the market remained busy, with a steady influx of new orders and ample tonnage supporting firm rates. However, the outlook for the coming weeks appears less optimistic, as anticipated cargo volumes are expected to be low.
• Continent: The market experienced modest declines, though activity showed signs of improvement over the week. While positive developments are anticipated, a more sustained improvement in sentiment may take longer to materialize.
• Mediterranean: The market began the year slowly, due to a concentration of vessel availability over the holiday period. Similar trends are expected to continue into the next week.
• Middle East Gulf / India (MEG/India): The market remained subdued, with limited cargo opportunities and a long tonnage list in the MEG region. No significant changes are expected in the short term.
• Southeast Asia / Far East (SE Asia / FEast): Both the northern and southern regions had a quiet week, with limited options for vessel owners. Many owners were forced to accept discounted rates and extended waiting times to secure fixtures. Interestingly, several Handysize cargoes from NOPAC were fixed by Supramaxes. A similarly negative outlook is expected for the upcoming week.
Ultramax Market Overview
• US Gulf (USG): The market showed limited movement in terms of rates, although demand was slightly more active. Despite this, the oversupply of vessels from the previous period continued to prevent any rate increases. A sustained rise in demand is necessary to drive rates higher in the coming week.
• East Coast South America (ECSA): The market continued its upward trajectory, driven by tight supply and a steady flow of cargoes. However, a potential build-up of vessel capacity in the second half of January could dampen sentiment in the near term.
• Continent: The market remained relatively quiet, with limited cargoes available. Consequently, many vessel owners began exploring more sustainable opportunities in other regions.
• Mediterranean: Despite the return of market participants following the holidays, demand and activity remained subdued. The tonnage list remained long, leading owners to lower their expectations in order to secure fixtures. With declining forecasts for Ukrainian exports, no significant rate increases are expected in the short term, and the outlook for the coming week remains negative.
• South Africa (SAFR): The market remained flat, with pressure from ballasters coming from India. This trend is likely to persist until the end of the month.
• Middle East Gulf / India (MEG/India): Despite a slight uptick in activity, the long tonnage list kept the market subdued. A moderate increase in demand is needed to shift sentiment.
• Southeast Asia / Far East (SE Asia / FEast): Compared to the previous period, the market showed more activity , supported by NOPAC cargoes. However, a high vessel supply led to lower rates. The outlook for the next week remains bearish, primarily due to the volume of ballasters from ECI.
Disclaimer
This report and the information contained herein are for general information only and does not constitute an investment advice