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Baltic Exchange Shipping Insights
Rates from ME Gulf eased down a point to WS 45.5/46 basis 270,000mt to China, although there is now a report of Shell paying WS 48 to Rizhao.
Singapore discharge was fixed by SPC at WS 49. For USG discharge, the market is still assessed at WS 18 Cape/Cape for 280,000mt cargo.
West Africa/China eased 2.5 points, as both Unipec and Dayharvest covered 260,000mt at WS 47.
In the North Sea, $4m was agreed for Hound Point to Korea, while Rotterdam to Singapore was fixed at both $2.85 and $2.9 million.
Vitol fixed USG/WC India at $2.8 million, while ATMI covered USG/Singapore at $3.2 million.
Black Sea/Med trade remained steady at WS 85 for 135,000mt, although Petroineos fixed an afra stem at WS 82.5 equivalent.
In the Mediterranean, Irving paid WS 57.5 for 135,000mt from Ceyhan to Canaport, while ST fixed 130,000mt from Libya/UKC-Med at WS 80-85 respectively. IOC fixed Arzew/Chennai at $I.85 million.
In Nigeria, the market was steady at around WS 70 for 130,000mt to UKC.
The spike in the Med market was very short-lived, and as tonnage availability built up, Ceyhan rates dropped from low WS 140s to WS 120, thereafter, UML fixed WS 100 and also WS 98.75.
Meantime from the Black Sea, WS 105 was fixed. There was further uncertainty in the region as force majeure was further re-instated in the Libyan port of Zawia.
In the Baltic, rates were steady at WS 95 for 100,000mt, while for 80,000mt, cross North Sea, the market eased 2.5 points to WS 120 with the potential to soften further.
The 70,000mt Caribbean and EC Mexico/upcoast market fell a further 15/17.5 points to sit now at between WS 85/87.5 level.
In the 55,000mt market from ARA/USG, rates nudged up modestly from WS 97.25 to very low WS 100s.
Very little change in the ME Gulf to Japan market where rates have been hovering between WS 102.5/105 region for 75,000mt, while the LR1 market eased modestly to sit at around WS 115/117.5 level.
The 37,000mt Cont/USAC trade was initially flat at WS 100 before increased enquiry saw rates creep up to WS 105. The 38,000mt backhaul market fell 7.5 points to WS 82.
Charterers slowed the pace this week to try and check rates, and, to an extent, succeeded. In Asia levels on the key West Australia/China route at the start of the week hovered close to $9.00 and an eco-180,000dwt 2010-built vessel, open Dalian, fixed a round voyage at a strong $25,400 daily.
However, as the miners slowed the pace, rates drifted, slipping to near the $8.00s for late July-early August cargoes. As the week closed out, owners were putting up a fight, with rates climbing back to $9.00, and possibly slightly over.
On the Saldana Bay/Qingdao run rates were also talked down, but brokers suggested levels were nearer the mid $16.00s at the time of writing.
The Atlantic market remained split in two halves, with tonnage still extremely tight in the North, and in the South, talk of cargoes still to be fixed. Front haul activity was confined to voyage fixing, but brokers suggested rates equated to the low $40,000s daily. Transatlantic business slowed impacting on rates, but here too as the week ended brokers talked of $13.00, next likely to be paid from Puerto Bolivar to Rotterdam for 160,000-tonne 10% cargoes.
From Brazil, rates were still at around $22.00 from Brazil to China having slipped from a high of about $22.70 for 1-10 August. Vale has seemingly yet to fix, with brokers awaiting its move in the market, but there were those expecting rates to move imminently.
Paper values have largely remained solid throughout the week and period interest remained in the market, but so far deals are being kept under wraps.
The Atlantic experienced some large gains this week, triggered by a lack of tonnage on the North Continent and significant enquiry from Murmansk and the Baltic.
Kamsarmaxes began fixing at rates in excess of $18,000, and in one case, over $20,000 for shorter duration trips. As the week progressed, this firmness filtered through to other areas, as a grain house fixed longer rounds at $16,000 and $16,500 respectively.
EC South American grain was relatively slow until a flurry of activity mid-week, with rates similar to last done, or ever so slightly better.
The Pacific market remained under pressure all week despite increased NoPac demand and a busy Indonesian market, as early tonnage was forced to reduce their rates to find cover, or begin the ballast to EC South America.
A 10-year old Kamsarmax, open Ulsan, promptly fixed a Prince Rupert round with a Japanese charterer at $12,300 daily. Whilst a grain house secured a 2011-built Kamsarmax from Ube for an EC Australia/China run at $11,000 daily.
The period market remained dormant as owners held their rates in line with the paper market, but charterers showed less appetite to take cover this week. A 2018 84,549dwt, open Yeosu at the end of this month, fixed for a year with an option of a further year at $15,750 daily.
More activity was seen as the week progressed from key areas in the Atlantic, whilst rates from the Asian sector moved sideways.
Very limited activity was reported on the period front, but a 63,000dwt open USG was rumoured fixed for two to three laden legs, redelivery Far East, at $14,000 plus a $400,000 ballast bonus.
Improved numbers were seen from the East Mediterranean, particularly for Ultramaxes. A 63,000dwt was fixed basis delivery Canakkale for a trip to the USG at $10,000 for 45 days and $14,500 thereafter.
From the Continent, a 63,500dwt was fixed for a trip to China at $19,900. There were mixed views from the South American market, with limited reporting. A 50,000dwt was booked for a trip redelivery Australia at $13,250 plus $325,000 ballast bonus. Whilst an Ultramax was rumoured fixed for a trans-Atlantic trip in the mid-upper teens.
The USG remained active, with a 52,000dwt fixed to move a grain cargo to the West Mediterranean at $14,000. While a 56,000dwt was fixed to Pakistan at around $23,000.
From Asia, a flat week overall, with limited fresh inquiry, brokers said. For Indonesia coal a 56,000dwt was taken at $10,350, delivery Singapore, redelivery South China, including CJK.
For Australasian business, a 53,000dwt was booked delivery Kohsichang for a trip via Kwinana, redelivery North China, at approximately $8,750. Limited action reported from the Indian Ocean but a 58,000dwt fixed delivery Port Elizabeth trip, redelivery Singapore-Japan, at $13,000 plus a $325,000 ballast bonus was reported.
A flat week for Handysizes, reflected overall in the BHSI, unchanged for two days this week. There was a little more activity seen from the Mediterranean where a 37,000dwt was reported fixed basis Canakkale for a trip via the Black Sea, redelivery Egypt, in the mid $9,000s.
Also, Handies were being traded in the low-mid $10,000s for inter-Mediterranean grain movements. From EC South America, 35,000dwt vessels were being fixed in the mid $12,000s to the Mediterranean.
Routes from the Continent lost ground with limited fresh enquiry emerging, but looking forward, some brokers said with the grain harvest expected soon from Europe, more activity might well be seen from South America. Little was reported from the USG and again routes saw some negative trend.
From the Asian markets, a 28,000dwt open Japan was fixed for a trip to Thailand, with steels in the mid $9,000s, whilst a 36,000dwt fixed from South Korea to EC India went around $10,500. Furthermore, a 37,000dwt fixed a trip delivery Tianjin, redelivery SE Asia, at $8,000.
Further south, a 29,700dwt open Kuala Tanjung, was rumoured booked for an Australian round voyage in the high $7,000s at the beginning of the week. As the week came to a close a 33,000dwt was fixed delivery Chittagong for a trip via EC India, redelivery Arabian Gulf, at $8,500.
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