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Dry bulk freight rates for Panamax vessels in the Atlantic Ocean rose in the week to Wednesday, February 19, as increased cargo demand in the Americas supported rates. Freight rates for the Brazil-Northeast Asia route rose by $1.90 per tonne week on week to $34.70 per tonne, while prices for the US Gulf-Northeast Asia route rose by $0.20 per tonne to $44.20 per tonne.
“Rates are experiencing a strong upward trend at the moment, driven by cargo inquiries, especially for second-half March dates from ECSA [US East Coast-South America], and as they say, a rising tide lifts all boats,” one source told Fastmarkets.
Brazilian customs data showed the country had exported 1.7 million tonnes of soybeans and 827,009 tonnes of corn in the first two weeks of February, slightly behind the pace of 2024.
However, exports may now be picking up after harvest delays earlier in the month slowed cargoes.
“Lineups are building at ECSA, especially north Brazil,” another source told Fastmarkets.
Rising ship numbers could further support rates if they lead to port congestion given Brazil’s previous logistic problems.
Earlier in February, there were build-ups of truck traffic.
Rates normally increase in February and March due to reasons such as Brazil’s harvest and export season.
In the Black Sea region, sentiment firmed through the week ended February 19, while no significant increases in rates were heard yet.
That comes with support from the region, with trade sources saying the Pacific area started to recover after the Lunar New Year, which also gave support to Atlantic rates.
Meanwhile, demand for grains was stable in the private Ukrainian market and within trade coverage for the international tenders, with grain prices increasing steadily during the week.
The rates for Handysize cargos from Ukrainian ports into Spain, however, were generally unchanged or slightly firmer at $16-17 per tonne.
That is in line with ideas heard for the same cargo size loaded from EU Black Sea ports into Spain, meaning the premium for loading from the war zone has vanished.
Another large tender was held during the week — Saudi Arabia booked 920,000 tonnes of wheat, which is expected to be shipped mainly from Romania, Bulgaria and Russia during the May-July period, which could also be a supporting factor.
The freight idea for Panamax vessels from Constanta to Red Sea Saudi Arabian ports was heard at $28-29 per tonne.
The idea for Ukrainian grains in Handysized vessels shipped into Egypt was also mostly stable at $12-14 per tonne, with traders willing to go lower, but some still paying up if the vessel was needed for spot shipments.
While overall demand was low from Asian destinations, fixtures were heard for Vietnam for March-April shipment, with the idea just below $30 per tonne, while the indication for that destination was $31-33 per tonne.
In the shallow water market, Russian Coaster rates from Azov to Marmara were stable week on week at $20-21 per tonne, while the Coaster rate from Ukrainian Danube ports into Marmara was indicated at $16 per tonne.
View Fastmarkets freight assessment methodology