The ARA barge freight market during 8–12 December was characterised by a calm start, persistent downward pressure on freight rates, and a sharp rebound in activity at the end of the week. While demand remained structurally weak for most of the period, leaving many barges idle, the week closed with the highest traded volume since September, as both operators and charterers moved to secure positions ahead of the holiday slowdown and the ICE gasoil expiry.
1. Freight Rates: Steady Declines Across All Routes
- 8 December: The week opened quietly, with middle distillate rates edging lower across nearly all routes, while light ends remained broadly unchanged. Operators reported underwhelming demand and empty barges lingering in ARA, keeping pressure on pricing.
- 9 December: Activity improved, but middle distillate freight softened further, while light ends stayed flat. Despite higher volumes, operators stressed that demand was still insufficient to absorb excess barge supply.
- 10 December: The market cooled again. Light ends declined across all routes, while middle distillates remained steady. For the first time in two weeks, light-end volumes exceeded distillates, reflecting shifting demand patterns rather than genuine tightening.
- 11 December: With the ICE gasoil contract expiring, spot activity dropped sharply and freight rates declined almost universally. Operators highlighted intense competition among empty barges and very limited prompt demand.
- 12 December: The week ended with a clear change in tone. Light ends strengthened, while middle distillates softened slightly. The pricing gap between the two product groups narrowed as charterers rushed to fix volumes ahead of the holidays and operators tried to keep barges employed over the weekend.
Takeaway: Freight rates trended lower overall, but Friday’s session showed that light ends can still rebound quickly when volume spikes and positioning needs dominate.
2. Spot Volumes: From Subdued Trading to the Busiest Day Since September
Spot activity fluctuated dramatically through the week:
- 8 December: Volumes reached around mid-50 ktons, reflecting a calm but workable start to the week.
- 9 December: Activity strengthened to nearly 85 ktons, although operators noted this did not translate into satisfying all barges due to oversupply.
- 10 December: Volumes dropped to just under 50 ktons, as trading cooled midweek and uncertainty ahead of ICE expiry set in.
- 11 December: Activity fell further to around 37 ktons, one of the quietest sessions of the month, with many barges unable to find prompt employment.
- 12 December: A sharp turnaround, with volumes surging to over 130 ktons, the highest since September. Both charterers and operators accelerated bookings ahead of the holiday period.
Takeaway: The ARA market showed extreme volume volatility, with a weak midweek followed by a powerful end-of-week surge.
3. Product Trends: Light Ends Take the Lead at Week’s End
Middle Distillates
- Gradual softening from Monday through Thursday, driven by oversupply and lack of urgency.
- ICE gasoil expiry did not trigger immediate support and instead coincided with lower activity on 11 December.
- Ended the week slightly weaker despite the volume spike.
Light Ends
- Stable early in the week, then declined midweek as empty barges accumulated.
- On 12 December, light ends outperformed distillates in both volume and pricing, benefiting from last-minute positioning and lower product prices stimulating movements.
Takeaway: Light ends regained relative strength at the end of the week, temporarily narrowing the gap with middle distillates.
4. Operational Context: Oversupply Persists Despite High Activity
- Throughout the week, operators consistently reported empty barges in ARA, even on days with stronger volumes (8, 9, and 12 December).
- Delays at specific terminals (Seatank and EVOS Amsterdam) were mentioned early in the week but gradually eased and did not materially tighten supply.
- On Friday, many operators accepted lower or flat pricing simply to keep barges employed over the weekend and into the following week.
Takeaway: Operationally, the market remained long on tonnage, limiting the sustainability of any late-week strength.
Conclusion
The ARA barge freight market in the week of 8–12 December remained fundamentally soft, despite ending with a striking rebound in spot volumes. For most of the week, excess barge availability and muted demand pushed freight rates lower across both product groups, with ICE expiry reinforcing insignificant effect on the spot market. The late-week surge reflected positioning ahead of the holidays and operators’ desire to avoid idle tonnage, rather than a structural improvement in demand. While light ends briefly outperformed and narrowed the pricing gap with middle distillates, the broader picture remains one of oversupply, fragile sentiment, and short-lived bursts of activity as the market moves deeper into the year-end slowdown.
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