The ARA barge freight market during 9–13 February was rather quiet in terms of traded volume, as market participants attended IE week in London. While activity recovered in the second half of the week, the overall tone remained soft, with freight rates trending lower across both middle distillates and light ends.
Despite intermittent increases in traded volume, barge availability remained sufficient, and at times abundant, limiting operators’ pricing power.
1. Freight Rates: Calm Start, Broad Downtick Midweek
- 9 February: The week opened with extremely limited activity, with traded volume reaching its lowest level in quite some time. IE Week kept many traders away from the desks, resulting in only a handful of fixtures, mostly concluded on a PJK basis. Freight rates remained stable in both segments amid the very calm conditions.
- 10 February: Activity picked up significantly compared to Monday, yet demand was still perceived as weak. Several prompt barges were reported empty in the ARA. Most fixtures were concluded below previous PJK basis levels, leading to a clear downtick in freight rates across both middle distillates and light ends.
- 11 February: Market liquidity declined again, with volume falling back to subdued levels. Operators continued to report limited prompt requests and idle barges. No light-end deals were registered, and most distillate fixtures were concluded on a flat PJK or lump-sum basis. Freight rates remained unchanged during the session.
- 12 February: As IE Week gradually concluded, activity increased sharply, with traded volume rising notably. However, the higher deal count did not translate into firmer pricing. Light-end fixtures were concluded below PJK levels due to the presence of empty larger barges, while middle distillate rates also recorded a slight downtick. Overall, PJK levels declined in both product categories.
- 13 February: Total traded volume eased compared to Thursday but remained above early-week lows. Spot fixtures were primarily concentrated in distillates such as FAME, jet, and gasoil, with prices marginally lower than previously seen. Freight rates in middle distillates registered another slight downtick, while light ends remained broadly unchanged.
Takeaway: Freight rates followed a stable, then lower, flat, lower, and slightly lower trajectory, driven primarily by weak prompt demand and ample barge availability.
2. Spot Activity: Volume Recovery Without Pricing Support
- Activity was almost absent at the start of the week due to IE Week.
- Midweek saw fluctuating volumes, with a temporary decline on Wednesday.
- Thursday recorded the highest traded volume of the week, but without restoring pricing momentum.
- Friday closed with moderate activity, still below levels typically associated with upward rate pressure.
Takeaway: The week highlighted that volume alone does not create firmness when effective supply remains abundant.
3. Product Dynamics: Light Ends Under Pressure, Distillates Slightly More Resilient
Light ends
- No deals were registered early in the week.
- Larger empty barges exerted clear pressure midweek.
- Concluded the week broadly unchanged on Friday but at lower levels than Monday.
Middle distillates
- Attracted relatively stronger interest compared to light ends.
- Experienced gradual and consistent softening throughout the week.
- Increased engagement following the expiry of February gasoil contracts may create additional movement in the coming sessions.
4. Operational Context: Availability Outweighs Demand
Operationally, the market remained well supplied:
- Several prompt barges were reported empty across ARA and Flushing/Ghent routes.
- Larger parcels in the light-end segment amplified rate competition.
- Despite increased fixing later in the week, operators continued to compete aggressively to secure employment.
Takeaway: This combination reinforced a structurally softer environment.
Conclusion
The ARA barge freight market during 9–13 February was characterized by suppressed demand early in the week due to IE Week, followed by a recovery in activity that failed to restore pricing strength. Freight rates drifted lower across both middle distillates and light ends as prompt barge availability outweighed demand. Even as traders gradually returned to the market and deal counts increased, operators continued to accept lower levels to secure employment. With water levels on the Rhine improving simultaneously and no clear surge in cargo demand, the ARA market closed the week balanced but under mild downward pressure, awaiting stronger directional drivers.
What’s next?
Are you ready to face your challenges head-on?
We now offer a FREE customized trial to our BargeINSIGHTS tool, an all-in-one platform for liquid bulk barge transport optimization.
With BargeINSIGHTS, you get instant insights into barge freight rates, bunker gas oil prices, water levels, vessel tracking, and barge availability—all in one place. No more time-consuming data collection; everything you need is at your fingertips.
Click here to schedule your demo and get access to BargeINSIGHTS for free!
