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Brief report and predictions for next week for handy and supramax sizes 18th October 2024

Iakovos (Jack) Archontakis

TMC Commercial Director

Handysize

• USG/USEC: The market began the week strong, with a midweek rush from charterers to secure vessels for their cargoes. This positive trend is expected to continue into the following week.

• ECSA: The market saw an upward movement after a slow period, driven by limited supply. Reduced competition from Supramaxes further supported the market. With a long cargo list, a strong start is anticipated for the next week.

• Continent: The market was under pressure due to increasing capacity and a limited cargo list, intensifying competition among owners. A boost in demand is needed to see any market increase next week.

• Mediterranean: The market experienced an active week with increased volume of requirements from the Black Sea. However, rates decreased as charterers maintained the upper hand. If demand continues to rise, higher rates are expected next week.

• MEG/India: The market remained flat with no significant changes. An increase in cargo quantity could push rates higher next week.

• SEAsia/FEast: The market maintained its levels despite limited demand in Southeast Asia and the Far East. Increased supply was balanced by healthy cargo flow from Australia and some opportunities from NOPAC, limiting the drop. Sentiment is bearish for the following week.

Ultramax

• ECSA: The northern area market was firm due to reduced supply, while the southern area remained flat with a short cargo list for Transatlantic and Far East trips. Increased demand in the south is needed for any development next week.

• USG: The market was active with some fixtures at higher levels and improved demand. However, pressure from nearby areas (e.g., Continent, West Africa, ECSA) is expected to increase the number of ballasters next week. It remains to be seen if demand will sustain the upward trend.

• Continent: Local cargoes pushed the market, which was also positively affected by the increasing USG market. This trend is expected to continue next week.

• Mediterranean: Strong demand, especially from the West, pushed the market. Many owners were willing to trade in high-risk areas, leading charterers to pay premiums even for regular routes. The market is expected to maintain this course next week.

• MEG/India: The market showed decent activity, and combined with a shortage of tonnage in South Africa, rates slightly improved. Predictions are cautiously positive for next week.

• SEAsia/FEast: The market lost ground due to a lack of fresh orders from Indonesia, Australia, and NOPAC. Owners were forced to lower their rates. Further pressure is anticipated next week.

Disclaimer

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