- Tighter Tonnage Availability Supports Supramax Spot Rates.
- Supramax Market Sees Limited Momentum but Stable Rates.
- TCE Rates for Rotterdam-Aliaga Scrap Route Decline Slightly.
The Supramax segment within the Continent and Baltic Sea basins was short of momentum during Week 9 (Feb. 24 – March 2) but stayed at comparable levels to last week. More stringent tonnage availability supported spot rates despite weak market activity, reports S&P Global.
Limited Momentum but Stable Spot Rates
At the start of the week, the market remained sluggish, yet spot rates held firm. “Clearly, the lack of available tonnage supported the spot market amid a steady flow of booked cargoes, but in the following weeks, I anticipate a stronger build of tonnage and a less robust cargo flow,” a shipbroker said.
Later in the week, fresh inquiries helped maintain spot rate stability, with only minor decreases observed. The market ended on a steady note, with the slowdown leading to unchanged levels.
Supply and Sentiment Shift
The most recent statistics from S&P Global Commodities at Sea indicated a negative sentiment in the Continent region. Statistics reported 76 loaded vessels and 57 ballastings, which left a spread of 19, a decrease from the previous week.
Marginal Declines in Time Charter Equivalent (TCE) Rates
Time charter equivalent (TCE) rates on the Rotterdam-Aliaga 40,000-mt ferrous scrap route experienced a minor decline across various vessel types:
- 0.5% Sulfur Marine Fuels: $12,252/day on March 3, down 1% week-over-week
- Scrubber-Fitted Ships: $13,045/day, also down 1% week-over-week
North Atlantic and Trans-Atlantic Trades Exhibit Weakness
In the North Atlantic, tonnage supply on the US East Coast was still in balance, but trans-Atlantic spot rates started to lose momentum as a result of weak momentum in North Atlantic and TA trades.
Based on CAS numbers, the supply spread was 11 more loaded Supramax vessels than ballasters, with 18 loaded vessels compared to seven ballasting vessels in Week 9.
Scrap Route Valuations Register Small Falls
Platts, which is owned by S&P Global Commodity Insights, valued the 40,000-mt Rotterdam-Aliaga scrap route at $17/mt on March 3, down by 1%.
Concurrently, the 40,000-mt New Jersey to Aliaga trans-Atlantic scrap trade was valued at $21.5/mt, decreasing by 2% week on week.
Rise in Supramax-Ultramax Deliveries to Turkey
Even with softer pressure, Supramax-Ultramax deliveries of scrap cargoes and steel products from Northwest Europe, the Baltic Sea, and the Russian Baltic to Turkey and Turkish ports rose sharply. CAS data showed 199,978 trips in transit in Week 9, a 141% week-over-week increase.
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Source: S&P Global
