You are here
Baltic Exchange Shipping Insights
Rates softened as more cargo came to the market. Levels for 270,000 tonnes to China east, fell 6.5 points to between WS 43.5/44 region while 280,000 tonnes cape/cape to US Gulf lost three points to WS 19.
West Africa to China is hovering around WS 45.75 down 3.25 points from a week ago. Crude from Hound Point to Korea went at US$4.25 million.
US Gulf to Singapore was fixed at between US$3.4 and 3.5 million while EC Mexico to South Korea was covered at US$4.8 million. Caribs to WC India reportedly was fixed at US$3.05 million on 1999 built tonnage.
In West Africa, rates for 130,000 tonnes to Europe fell about 3.5 points as WS 52.5 was fixed from Nigeria despite reasonable amounts of enquiry.
Suezmaxes were enticed to compete for aframax stems, in view of their improvement, which was the only chink of light for owners here.
An Angola/Spain run reportedly went at WS 51.25. Black Sea has been dormant and brokers now assess the market for 135,000 tonnes to Mediterranean at WS 62.5 level, in contrast to the WS 65 of a week ago.
In the Mediterranean, Repsol paid WS 55.25 for 135,000 tonnes from Sidi Kerir to Spain while a Hariga /China run went at US$2.1 million.
A much-improved week for owners in the Mediterranean with plenty of enquiry. Rates gained 10 points to around WS 107.5, although brokers feel that with competition from suezmaxes, they may be capped at this level.
In the Baltic, rates for 100,000 tonnes held at WS 87.5 while cross North Sea rates for 80,000 tonnes hovering in the low WS 100s.
Limited enquiry in the 70,000 tonnes Caribbean/up coast trade saw the market tumble 30 points to around WS 90.
The market for 55,000 tonnes from ARA held at WS 105 level, although a softer WS 102.5 was agreed for Skikda load.
An uneventful week saw rates maintained in the LR1 & LR2 markets at WS 90 for 55,000 tonnes Middle East Gulf/Japan and 75,000 tonnes to Japan paying mid WS 80s.
The 38,000 tonnes backhaul trade from US Gulf/UKCont buckled under the pressure with rates off over 20 points to low WS 90s.
In the 37,000 tonnes Cont/USAC market, rates were steady at WS 155 with potential to firm marginally.
A marked improvement on the capes last week, with the headline west Australia/China route jumping up over US$1.00.
Vessels were fixing around the US$5.60 level at the beginning of the week and now they are obtaining US$7.00 which was rumoured to have been fixed by FMG on cape tonnage loading 2 February.
Saldanha to Qingdao was fixed at US$11.35 on capesize tonnage basis 11/20 February by NYK.
Midweek, Vale fixed two vessels for Teluk Rubiah to Qingdao, Pantagruel (180,181-dwt 2004-built, CCL) basis 30/31 January at US$4.90 and the Captain J Papadakis (179,558-dwt 2011-built) for 1/3 February at US$4.80.
There was less T/C fixing reported but the Aqua Vision (180,353-dwt 2011-built) open Dalian 1/2 February was said to have fixed for an Australian round voyage with redelivery North China at US$12,500.
With the improved sentiment there was a little more period activity, the Baltic Lion (179,185-dwt 2012-built) open Dalian 26 January fixed 4-7 months in the region of US$16,000 with Bunge.
In the Atlantic TKS fixed NYK tonnage for their Narvik/Rotterdam cargo loading 7/16 February at US$4.25 and EZDK took K-line tonnage for their Narvik/El Dekheila 10/19 February cargo at US$6.55.
On the Brazil to China route, the Cape Splendor (206,070-dwt 2014-built) fixed a full cargo loading mid-February at US$14.95 with Dreyfus.
The period market remained active with an ECO JMU type achieving US$14,500 for one year at the beginning of the week, however as the week progressed the focus shifted from one-year trades to shorter periods of four to six months.
A decent number of fixtures were evident midweek and sentiment was positive, but on Thursday the spot market appeared to have a wobble as charterers began to challenge the status quo and hold back a little.
This was particularly evident in the Atlantic where the market had seemed very firm with modern kamsarmaxes fixing transatlantic grain rounds in excess of US$15,000 daily on Wednesday, but on Thursday morning the FFA market softened and charterers suddenly decided to take a step back and watch, leading to a stand-off.
There were very few fronthaul trades reported from the US Gulf, but east coast South America continued to attract ballasters from the East and Middle East with a kamsarmax fixed at US$15,000 from Haldia being the high point.
In the Pacific, tonnage saw significant gains for North Pacific rounds compared to the previous week, jumping from US$11,000 daily for modern kamsarmaxes to US$12,750 daily, with Japanese activity being the main driving force.
A few vessels failed on subjects, and owners began to discount trips to India and South-East Asia, but generally rates remained steady.
As the week progressed the supramax index lost ground mainly due to the Atlantic routes losing momentum, whilst the Asian routes generally stayed in more positive territory.
Period activity however was again seen with a 63,000-dwt open east coast India fixing five to seven months trading redelivery worldwide at close to US$12,000.
In the Atlantic, the US Gulf saw declines on rates from the previous weeks with a lack of fresh enquiry, a 53,000-dwt was fixed with sulphur basis delivery SW Pass redelivery Morocco at around US$20,500.
From east coast South America, brokers advised a static week but there was a bit more enquiry for forward positions as the week came to a close.
From the Continent and Mediterranean again rates eased, a 56,000 was fixed delivery Canakkale for a trip via west Mediterranean redelivery west Africa at US$9,000.
Rates remained steady from Asia, a newbuilding 63,000-dwt was fixed ex yard Imabari for the end of January for a NoPac round redelivery south east Asia at US$9,900.
From the Indian Ocean a 58,000-dwt was rumoured fixed at US$11,750 plus US$175,000 ballast bonus delivery Durban for a trip to the east.
Another pretty flat week overall in the Atlantic and whilst rates from the US Gulf started on a high, as the week progressed they traded sideways.
From the Continent and Mediterranean rates eased slightly with a lack of fresh enquiry.
A 28,000-dwt was fixed delivery in the Black Sea for a trip to the east Mediterranean at US$7,600. Limited activity from the south Atlantic with little being reported from here.
Rates in Asia again remained fairly weak, due to a buildup of tonnage in the North and a lack of fresh enquiry.
Further south rates remained steady, a 37,000-dwt open Kosichang fixed a sugar cargo redelivery far east in the mid US$8,000s. As the week closed holidays in Australia and India slowed things down further.
Baltic - ICS Lunchtime Lectures: Legal Eagles
The next in series of Lunchtime Lectures takes place on 31 January at SGX Centre, Singapore. Featuring advice on how to develop client relationships and trust, through deeper understanding of common and uncommon legal pitfalls in shipping.
Free to Baltic Exchange member companies, the lectures are designed for both broker and operations staff, email: firstname.lastname@example.org.
This report is produced by the Baltic Exchange.
The Baltic Exchange, a wholly-owned subsidiary of Singapore Exchange, is the world's only independent source of maritime market information for the trading and settlement of physical and derivative contracts. Its international community of over 650 members encompasses the majority of world shipping interests and commits to a code of business conduct overseen by the Baltic. For daily freight market reports and assessments, please visit www.balticexchange.com.
- The report is also available online at bt.sg/baltic.