Over the last few months, I have been inundated with calls and emails from broking houses who are in desperate need of experienced brokers, and specifically those specialising in Panamax and chemical tanker.
This “broker boom” has definitely been fuelled by the limited availability and modest order book of new Panamax ships, combined with increasing demand for grain and iron ore. This is pushing freight rates up and heightening competition for these ships. This is in stark contrast to the Capesize order book which is the strongest it’s been for 6 years.
The Panamax market, has seen steady growth recently, as evidenced by the Baltic Dry Index, which reflects upward movements in global shipping rates. In 2024, strong grain demand, especially from regions like South America, has driven a spike in activity, leading to higher freight rates and increased demand for brokers who can facilitate these complex deals. Similarly, the chemical tanker market is on the rise, with sustained demand for petrochemical products boosting rates for tankers in this niche. With a shortage of supply, the potential rewards for brokers in this sector are huge.
Such is the employer optimism, I’ve got clients looking for entire teams of Panamax brokers in hubs such as Dubai, Hong Kong and Switzerland. Clients are looking to expand teams to locations they have not had teams in before – such as mainland China, Tokyo and Copenhagen.
A leading broker house told me that the limited availability of Panamax vessels, combined with increasing demand for grain and mineral exports, is pushing freight rates upward and heightening competition among brokers to secure lucrative deals for their clients. As we move towards 2025, the “broker boom” shows no sign of slowing and in the short-term and coming winter months, demand for coal is set to increase and as a result competition for the best brokers is likely to remain intense.
Talking this through with Spinnaker CEO, Phil Parry he thinks that “The recent reports suggest that brokers are seeing a wave of fixtures, with South American grain exports driving much of the demand. This surge has made brokers who specialise in Panamax vessels particularly valuable, as they are tasked with securing vessels in a tight market where tonnage is limited.”
Looking forward, the broader market for shipbroking remains optimistic, despite concerns over potential global economic slowdowns. Dry bulk shipping, particularly for Panamax and Capesize vessels, is expected to stay robust, with steady demand from sectors like agriculture and minerals. Additionally, the chemical tanker sector is poised for continued growth, driven by the ongoing demand for petrochemical products and refined goods.
Industry experts are forecasting sustained activity in both the dry cargo and tanker markets, noting that competition for second-hand vessels is likely to remain fierce due to constrained newbuilding capacity. The constrained order book for new Panamax ships, in particular, is expected to keep freight rates buoyant in the near term, further boosting demand for expert brokers in this space.
If you are a broker looking to move, or a broker waiting for your end-of-year bonus before you consider a move, then do contact me as we can discuss what options are available from January 2025 (which is just around the corner!)
Article written by Aaron Griggs, Recruitment Consultant
