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Baltic Exchange Shipping Insights

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

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TANKER REPORT

VLCC

Despite good volumes of enquiry, rates eased for eastbound 270,000-ton cargoes. The rate for China discharge eased paying WS 50 with South Korea and Japan at WS 47 although later in the week Total fixed at WS 48.5 for Japan discharge.

For US Gulf discharge, rates for 280,000 tons eased around 3.5 points, as Exxon took the 'Sea Ruby' at WS 18 and Vitol fixed an options cargo at WS 22 Cape/Cape.

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West Africa/China initially weakened to WS 49.5 from WS 52.5 and then Unipec took two ships at WS 51 and WS 52.5 respectively for 260,000 tons.

In the US Gulf, GS Caltex paid $4.45 million to South Korea while Reliance reportedly fixed Jose/Jamnagar at $3.6 million, down $150,000 from the previous last week. Hound Point to South Korea was fixed at $4.5 million.

Suezmax

Rates in the 135,000 tons trade from the Black Sea/Med were steady at WS 85.

In the Mediterranean, Repsol took the 'Front Thor' for 140,000 tons from Sidi Kerir to Spain at WS 69 while UML fixed 135,000 tons from Ceyhan to UKC-Med at WS 70-75 respectively.

Total fixed 130,000 tons from Algeria to Fos at WS 85. In Nigeria, trips to Europe were initially fixed at both WS 70 and WS 72.5 basis 130,000 quantity, with Angola loadings covered at between WS 65 and WS 67.5.

Subsequently, the market firmed and a trip to EC Canada went at WS 78 on Astro tonnage.

Aframax

Another difficult week for owners in the Mediterranean with rates flat at around WS 80 for 80,000 tons and Black Sea paying between WS 80/82.5 level.

In the Baltic early in the week rates dropped three points to WS 77.5 for 100,000 tons, but recovered to around WS 82.25, with talk of a higher number paid.

A similar story in the 80,000 tons cross North Sea market with rates softening to WS 100, but then increased enquiry prompted a push, with WS 115 done from Sullom Voe and WS 110 agreed elsewhere.

The 70,000 tons Caribbean and EC Mexico/upcoast market continued to drop with rates around WS 112.5 in contrast to WS 125 the previous week.

Clean

In the 75,000 tons from ME Gulf to Japan trade, rates firmed 2.5 points to WS 100 level with the LR1 market unchanged at WS 120.

The 37,000 tons Cont/USAC trade saw increased enquiry and despite healthy tonnage availability, rates nudged up around five points to WS 107.5/110 region.

The 38,000 tons backhaul market gained 12.5 points to WS 90.


DRY REPORT

Capesize

A punchy week for the big ships that saw Atlantic rates soar, with the tonnage list tight prompting charterers to split cargoes, though, mostly unsuccessfully.

Fronthaul rates climbed to the equivalent of over $40,000 daily, with a cargo allegedly fixed on voyage basis from Port Cartier to Japan at a timecharter equivalent of $42,500 daily basis 90 days duration.

Transatlantic rates too saw significant gains, with a 165,000-tonne 10% coal cargo from Drummond to Hadera at $13.75, and a 2010, 169,000-tonner not particularly well-described fixing from Gibraltar for a Colombian round voyage at a rate in the upper $20,000s.

The Brazil/China rate maintained gains, with a 23-25 July cargo booked from Tubarao to Qingdao at $23.25 and early August cargoes concluded slightly lower.

A slower pace initially in the East, but as the week closed out a rumour circulated that a rate in the low $9.00s was fixed for 19 July onwards from West Australia to China, the highest rate seen for over six months.

Rio Tinto and BHP Billiton were both active over the week with the former fixing in the upper $8.00s.

Delays too were building in China, with bad weather proving an issue. Paper values were also sharply up over the week but so far little period activity was reported.

Panamax

The Atlantic tonnage list continued to tighten last week, and sentiment was further helped by the appearance of several Cape splits entering the market, as rates there rose rapidly. But more than once charterers found themselves unable to make the business work on smaller ships.

The North Atlantic and the Mediterranean also saw more fronthaul trades. Rates crept up throughout the week, with a modern Kamsarmax fixing at close to $20,000 from the Continent via North coast South America to the East.

East coast South America was slightly more subdued compared to recent weeks, with the continued threat of cheap Ultramax tonnage but rates just about held their ground with a Kamsarmax fixed at close to $16,000 plus $600,000 ballast bonus for end July arrival, while an August stem fixed on a voyage basis from Santos to North China at $34.75 per mt.

The Pacific remained oversupplied, and rumours of Indonesian export problems did little to help owners. Rates softened for all but the very well described Japanese units in premium positions although the period/short period market remained flat due to the strong Cape market and improved paper values.

Supramax

A mixed week with a growing tonnage lists in Asia putting rates under downward pressure at the end of last week.

In contrast, from the Atlantic there was limited activity reported, but as the week closed out certain areas saw a tightening of tonnage especially in the US Gulf and Mediterranean areas.

From the US Gulf, a 56,700-dwt was reported fixed for a trip with grains to Turkey in the upper $13,000s.

On fronthaul, an Ultramax was linked to a trip to the Far East in the low $20,000s. Limited activity from East coast South America saw a 57,900-dwt rumoured fixed for a trip to Algeria in the low to mid $13,000s.

In the Mediterranean, a 58,000 open Bejaia was fixed for a trip via the Spanish Mediterranean, redelivery West Africa, in the mid $11,000s, whilst for trips from the Black Sea area to the Far East another 58,000 was rumoured fixed in the mid $16,000s.

Limited trading from the Continent, with a 56,000 fixed for a scrap run to Turkey at around $12,000.

The Asian market struggled and a 57,000-dwt was reported fixed basis delivery Singapore for a trip via Indonesia redelivery India at $12,000.

Later, a 56,900-dwt also open Singapore was booked for a trip via Indonesia, redelivery China, in the low mid $10,000s. Nickel ore runs saw a 57,000 open Lanshan covering also at around $10,500 for a trip to China.

Handysize

The handy market stayed in the negative zone all week with routes in both basins struggling to show improvement. Sources suggested cargoes circulated in key markets in the Atlantic but low rates were offered curtailed trade.

In the Pacific, fixtures reported on the period front included a 32,000-dwt open Onsan with no further details and two medium-sized fixed $9,000 delivery, Lugait, Philippines and $10,500 delivery Samalaju respectively both for two laden legs with redelivery in Singapore/Japan range.

From East coast South America, a 31,000-dwt was fixed for a grain cargo to Dammam at $14,500 early in the week. From the US Gulf, a 35,000-dwt was fixed for scrap cargo to the Mediterranean at approximately $9,750.

A 35,000-dwt open US East coast was booked to move wood pellets to the Continent at $11,000. A 38,000-dwt open Canakkale was booked at $8,000 for a run via Constanza to the Adriatic Sea, and another handy-sized open in the same area was fixed $9,000 for a fronthaul run to Thailand.

In the East, a large Chinese vessel open in Hong Kong was booked for a trip to the Continent at $8,000 for the first 62 days and $12,000 thereafter.

A 35,000-dwt open Thailand was fixed for logs via Malaysia to West coast India also at $8,000.

A 28,000-dwt open in Indonesia agreed $10,000 to run via Australia and redeliver in China with concentrates.


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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