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Baltic Exchange Shipping Insights

A roundup of last week's tanker and dry bulk market

TANKERS

VLCC

Reduced demand saw Middle East Gulf rates for 270,000 tonnes to China ease two points to WS 69, while 280,000 tonnes to US Gulf was fixed at WS 26 cape/cape and an options cargo agreed WS 30.

West Africa/China remained around WS 70 basis 260,000 tonnes cargo. Crude from Hound Point to South Korea was fixed at US$5.275 million.

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Bahri took 2002 built tonnage from Sidi Keir to Rotterdam at WS 67 basis 280,000 tonnes and EC Mexico to WC India went at US$4.2 million.

Suezmax

Limited enquiry in West Africa combined with good availability of tonnage saw rates initially ease 7.5 WS points to WS 72.5 before regaining some lost ground, to sit now at around WS 75/76 region.

Likewise, in Black Sea, rates for 135,000 tonnes to the Med lost 2.5 points to WS 87.5.

Black Sea/South Korea went at a softer US$2.85 million, while a shorter run from Ceyhan to Portugal went at WS 79 basis 135,000 tonnes size.

Aframax

A flurry of enquiry in the Mediterranean helped thin the tonnage list and rates for 80,000 tonnes gained six points to around WS 100/102.5 region and Black Sea has been fixed at both WS 110 and WS 115.

In the Baltic, rates for 100,000 tonnes initially held at WS 65 before firming to WS 70 with rates in the 80,000 tonnes cross North Sea trade now up 10 to WS 95 with Liverpool Bay load (which brokers say commands a premium) fixed at WS 102.5.

Steady enquiry in the 70,000 tonnes Caribbean/up coast kept the market at WS 100, though brokers feel there is potential for modest firming here.

Panamax

After an initial deal at WS 117.5 was done, the market has settled at WS 115 for 55,000 tonnes from ARA and Skikda to US Gulf.

Clean

The market for 75000 tonnes from Middle East Gulf/Japan was maintained at WS 122.5 with 55,000 tonnes hovering around WS 125/127.5 level.

Plenty of enquiry and a tighter tonnage list saw rates in the 37,000 tonnes Cont/USAC trade gain 35 points to WS 142.5/145 level before easing back, with WS 135 now said to be on subjects.

Rates for 38,000-tonnes from US Gulf to UKCont held in the mid WS 130s.


DRY

Capesize

Rates found some support in the east as the week closed out, with the busy West Australia/China route pushing towards US$8.00 after dropping to the mid US$7.00s mid-week.

The miners and other operators were vying for tonnage but the coming week will be the tester.

There was talk of a 2010-built 180,000-tonner open Japan fixing a round voyage with South Korea redelivery at a stronger US$20,750 daily.

There were said once again, to be several ships in ballast towards Brazil, with trading there largely slow for most of the week.

A 20-30 December 170,000-tonne 10% cargo fixed from Tubarao to Qingdao at US$17.75, while a 1-10 December cargo allegedly went in the mid US$17.00s but likely with a reduced commission.

Further north, rates eased a touch, but a fuel economical 180,000-tonner open 23-25 November Rotterdam achieved US$34,000 daily for a trip via the US east coast to South Korea.

Transatlantic rates came under pressure, slipping to the low US$20,000s daily but with some resistance evident as the week closed out.

The list of ships open in the north is usually remained and with just a few more cargoes quickly impacting on rates.

Period trading has been slow, but mid-week, a 176,000-tonner fixed in direct continuation for delivery in the first quarter 2018 at US$14,500 daily, for 11 to 13 months trading.

Panamax

The Panamax index fell all week, however, as the weekend approached, the bottom seemed to be in sight as the rate decline slowed and owners have begun to hold, or increase their rate ideas.

At the beginning of the week, the Asia/Pacific market seemed to be in denial, with brokers claiming each lower fixture done was not a true reflection of the market, but as the week progressed the rates continued to fall.

A 2008-built Panamax fixed at US$8,100 daily for a NoPac round voyage, and a 2012-built Kamsarmax fixed at US$9,000 daily, both delivery CJK, representing a drop of about US$1,000 daily from the fixtures at the end of last week.

Despite the softening rates, period activity returned as some charterers seized an opportunity to take advantage of the spot market weakness.

There has been more mineral activity in the Atlantic this week, but it has not been supported by any significant grain volume from the US Gulf or east coast South America. Rates have drifted lower, as owners generally looked to stay within the Atlantic at reduced levels, rather than fix to the east.

Supramax

The week began with routes across the board in negative territory but by the end of the week, areas in the Atlantic especially from the US Gulf looked steadier as more cargoes appeared.

A 53,000-dwt was fixed from the US Gulf to West Africa with coal at US$18,750 daily.

From the Continent, a 63,200-dwt was covered for a trip from Antwerp to Camden-Vera Cruz with steels at US$8,500 daily.

Activity remained sparse from east coast South America but a 56,800-dwt was reported fixed delivery Recalada for a trip via east Africa, redelivery Durban at US$16,500 daily.

The Asian market remained under pressure, with a build-up of tonnage and lack of fresh enquiry at the beginning of the week.

A 53,000-dwt was fixed delivery Shanghai trip to south-east Asia at US$5,950 daily and a 50,300-dwt open CJK agreed delivery Muara Pantai to south China in the mid US$9,000s.

From Japan, a 66,600-tonner fixed for a NoPac round redelivery Japan at US$9,500 daily.

Further south, a 57,000-dwt was booked delivery Singapore trip via Indonesia redelivery west India at US$9,000 daily or US$8,500 redelivery east India.

On the period front, little was reported but a 58,100-dwt was fixed delivery CJK for four to six months trading redelivery worldwide at US$9,900 daily.

Handy

Overall the handy sector remained weak throughout the week. Brokers suggested a turning point possibly for tonnage in the US Gulf and east coast South America.

The Pacific area continued to trade sideways. A couple of grain fixtures were reported this week from the Black Sea to the Mediterranean.

A 35,000-dwt 2015-built delivery Egyptian Mediterranean was booked for a grain trip via the Black Sea to Morocco at US$9,750 daily with about 20 days duration, and a 37,000-dwt and a 28,000-dwt were both fixed for a similar run to the east Mediterranean at US$10,500 and US$10,000 daily respectively.

A 33,000-dwt 2013-built delivery Szcecin with prompt date was fixed for a trip to Italy at a rate in the mid US$11,000.

In the east, a coal run from Indonesia to China was paid US$8,000 daily on a 34,000-dwt 2010-built delivery south China.

A 36,000-dwt 2012-built was relet for a tapioca trip to China at $9,300 daily delivery Kohsichang.


NOTICES

Supramax reporting changes

Since 3 April 2017, the Baltic has been publishing a 6TC value for the Tess 52 which is derived from the BSI Tess 58 values. As part of the transition from the 6TC to the 10TC publication, it is the intention to change the method of the 6TC calculation on 3 July 2018 for both the physical assessment and the related forward curve.

This report is produced by the Baltic Exchange.

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For daily freight market reports and assessments, please visit www.balticexchange.com.

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