Baltic Exchange Shipping Insights

Capesize

The Capesize market had the wind in its sails as rates jumped in all regions. The 5TC ended the week at $32,733, a rise of 8,731 week on week. While the Shanghai Covid situation continues to hamper vessel movements across all sectors, the Capesize market appears able to push as good tonnage demand comes from Brazil and Australia.

The C5 West Australia to China route now sits at $15.077 - and the C3 Brazil to China route at $34.64 - both just off their high attained on Thursday for the year.

These voyage levels equate to C14 Brazil China ballast of $31,050 and C10 Transpacific of $37,792. The Backhaul C16 continues to amaze and disrupt, settling the week at $28,500, over $5,000 above the Transatlantic C8, with some suggesting this is the new fronthaul route. This high valuation continues to be largely driven by coal demand to Europe as energy prices remain at high levels.

Panamax

It was a mixed week on the BPI. After a positive start, activity and sentiment softened at close. In the North Atlantic an 80,000-dwt open Spain fixed a trip North Coast South America to Saudi Arabia with redelivery Skaw-Passero at $28,000. A 85,000-dwt open Jorf Lasfar fixed via North Coast South America to India at $45,000. In East Coast South America activity slowed, but a 81,000-dwt fixed from Recalada to South East Asia at $27,500 plus a ballast bonus of $1,750,000.

In the Pacific, activity remained positive with a 82,000-dwt fixing from China via North Pacific USA back to Singapore-Japan Range at $27,000. A 85,000-dwt fixed from North China via East Coast Australia. Period has also been active with 82,000-dwt open in the Persian Gulf fixing for nine to 12 months with worldwide redelivery at $29,000. A 82,000-dwt open in China was fixed for six to eight months at around $31,000.

Ultramax/Supramax

A rather positional week with mixed sentiment in many areas. The Atlantic saw a slight correction in the US Gulf as rates eased, whilst more enquiry was heard from the South Atlantic as the week closed. From Asia, better levels were seen generally. However, a lack of coal imports from Indonesia to China tempered rates. Period activity remained but most activity was kept under the radar. A 63,000-dwt open Turkey was fixed 10-12 months trading at around $30,000. Pressure eased from the US Gulf and a 56,000-dwt was fixed for a transatlantic run redelivery East Mediterranean at $40,000. Elsewhere, a 58,000-dwt open West Africa fixed a trip to China at $35,000. From Asia there was limited activity, but a 56,000-dwt open Indonesia fixed a trip to Thailand at $24,500. Good levels were seen in the Indian Ocean with a 55,000-dwt fixing a trip delivery South Africa to the Far East in the low $30,000s plus mid $600,000 ballast bonus.

BT in your inbox

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign Up

Sign Up

Handysize

The BHSI remained positive in general. However, the US Gulf made significant negative moves as a 38,000-dwt fixed from the US Gulf to Spain with an intended cargo of coal at $30,000. A 36,000-dwt also fixed from Savannah to the UK–Continent range with an intended cargo of woodpellets at $30,000. A 37,000-dwt was fixed for a trip from Houston to the Eastern Mediterranean with an intended cargo of petcoke at $35,000. 

East Coast South America appears to have reached a ceiling at present with levels stabilising and a 30,000-dwt fixing from Itaqui to the Black Sea excluding Russia and the Ukraine at $35,000. A 36,000-dwt was rumoured to have fixed from Recalada to West Coast South America at $52,000. In Asia a 38,000-dwt open China was fixed for a minimum of four to about six months at $36,500 and a 38,000-dwt open in South Korea fixed for three to five months at $35,500.

Clean

In the Middle East Gulf the LR dynamics look to still be favouring voyages west at the moment. TC1 75k Middle East Gulf / Japan, after plateauing at a shade over WS300, then dropped incrementally into the high WS290s at the end of the week. The LR1s have followed suit with their larger sisters. TC5 55k Middle East Gulf / Japan halted at WS320 midweek and has then resettled to around the WS315 mark. The LR1s heading west have held strong all week, rising from around $4.75m to $4.95m.

SEE ALSO

Baltic Exchange Shipping Insights

The MRs of TC17 look to have drifted into a quieter mode this week and subsequently we have seen the Index drop 25 points to WS390. West of Suez on the LR2s, TC15 80k Mediterranean / Japan saw a further upside as tonnage looked more toward the firmer Middle East for employment. The benchmark ended up at $4.79m (+$883K) by the end of the week and breaching $20,000 /day TCE.

The LR1s of TC16 60k Amsterdam / Offshore Lomé, crept up consistently this week to WS240.71 (+16.42), a round-trip TCE of $37,521 /day. On the UK-Continent MRs softened a little following some charters failing subjects and the tonnage list lengthening. TC2 37k UK-Continent / US Atlantic Coast rose from WS327.22 to WS335 midweek, then took a downturn ending up at WS321.11. TC19 moved in tandem to TC2 and was pegged at WS335.57 by end of week.

The USG MR market has been muted in open activity this week. TC14 38k US Gulf / UK-Continent lost 55.71 points to WS174.29 and TC18 the MR US Gulf / Brazil haemorrhaged 85 points to WS220.

The Baltic Handymax market was a little more active with TC9 30kt Primorsk / Le Havre seeing a 42.86 point rise to WS425. In the Mediterranean, TC6 30kt Skikda / Lavera has been stable this week holding around the high WS290s – low WS300s.

VLCC

VLCC rates continued to lose ground this week. 280,000mt Middle East Gulf/USG (via Cape of Good Hope) is assessed a point lower at the WS22.5 level, while the 270,000mt Middle East Gulf/China trip is valued 2.5 points down at just above the WS40 mark (a round trip of TCE of minus $10,800 per day).

In the Atlantic the rates were also slightly reduced with 260,000mt West Africa/China now rated a point less at a fraction below WS43.5 (minus $6,300 per day round-trip TCE). For the 270,000mt US Gulf/China voyage the market dropped $150k to $5,137,500 (a round-voyage TCE of minus $8,600 per day).

Suezmax

Rates for the 135,000mt Novorossiysk/Augusta fell seven points this week to just under WS127 (a round-trip TCE of $30,100 per day). In West Africa, meanwhile, the 130,000mt Nigeria/UKC market continued to climb steadily gaining seven points to a little over WS90, which shows a round-trip TCE of $9,200 per day. For the 140,000mt Basrah/West Mediterranean route the rates have remained flat at WS45.

Aframax

The 80,000mt Ceyhan/Mediterranean market fell back this week, losing 12.5 points to around the WS145/147.5 region (a round-trip TCE of $21,300 per day). In Northern Europe the rate for 80,000mt Hound Point/UK Continent shed 12 points to settle in the WS142.5/145 range (a round-trip TCE of $18,800 per day).

In the Baltic Sea, with the ongoing war in Ukraine and imminent UK and European sanctions coming into effect, rates for 100,000mt Primorsk/UK Cont trip continue to be assessed by our panellists and have the route a meagre four points lower at a little below the WS205 mark (a round voyage TCE of $57,300 per day).

Across the Atlantic, the Aframax market continued the downward trend. Rates for the shorter-haul 70,000mt EC Mexico/US Gulf route eased 3.5 points to WS141.5 (a round-trip TCE of $7,700 per day) and for the 70,000mt Caribbean/US Gulf trip rates slipped 2.5 points to WS136.5 (a round-trip TCE of $6,200 per day). For the transatlantic trip of 70,000mt US Gulf/UK Continent, rates are marginally down one point to the WS136.5 level ($9,000 per day round-tip TCE).

Baltic Exchange News

The Baltic Exchange runs a series of professional training courses through its Academy. When possible, these take place in key shipping centres but are also available as an e-learning option. The courses are designed to help shipping, finance and commodity executives build on their knowledge of the maritime markets. The courses are led by experts and deliver a high-level education, combining theory with real-life practical examples. See online for more details.

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.