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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

Chinese charterers dominated in the Middle East Gulf, with rates easing slightly to WS 56/57 and South Korea discharge at WS 55 all basis 270,000mt cargo.

West Africa to China rates slipped two points, with CSSSA taking the 'DHT Peony' at WS 55.5.

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In the USG, Unipec fixed the 'New Courage' at $3.85 million to Singapore, with a WC India option at $3.6 million basis 275,000mt, while GSC fixed to South Korea at $5.3 million basis 270,000mt.

Caribbs to Ningbo went at $5.0 million. In the North Sea, CSSSA paid $4.5 million from Hound Point to South Korea.

Suezmax

Steady enquiry in West Africa/Europe resulted in positive sentiment with rates now at WS 67.5, up a few points from the previous week. A shorter run to Spain went at WS 70.

Aframax

In the 80,000mt Mediterranean market, rates from Ceyhan increased from WS 120 to WS 127.5 with UML active here. Libya load paid around WS 130, with Black Sea fixed at WS 125.

As the Baltic and North Sea markets fell sharply, owners were considering ballasting to the Mediterranean, possibly pressuring rates there.

In the Baltic, BP had nine offers and shaved almost 10 points off the rate, fixing at WS 72.5 for 100,000mt.

Cargoes requiring short options paid WS 75. The 80,000mt cross North Sea market eased in tandem with CSSSA fixing WS 97.50 from Flotta.

Panamax

Healthy enquiry in the 55,000mt market from ARA and Skikda to USG saw rates rise to 5/7.5 points to WS 120.

Clean

In the 55,000mt from Middle East Gulf to Japan trade, rates firmed from WS 100 to almost WS 105.

The 38,000mt back-haul trade fell 14 points to WS 81.25.


DRY BULK REPORT

Capesize

A turnaround in fortunes for the big ships, with a few slower days in the market.

A build-up of tonnage and a lack of Brazil cargoes resulted in a slide in rates.

The active West Australia/China trade saw rates cut 80 cents in a week, with $8.65 paid for a 13-15 September cargo from Dampier to Qingdao.

Time-charter trading was also limited, but 174,000mt, 2005-built, fixed at $20,000 daily from Caofeidian for a West Australia round trip.

Ballasters continued to head for Brazil, but rates eased with a mid-September cargo fixed to Qingdao around the mid $22.00s and an October position at $23.30.

Some owners now appear willing to take under $22.00. The North Atlantic remained very short of cargoes and a 5-14 September 150,000mt cargo from Port Cartier to Rizhao fixed and failed at $28.75, with this rate unlikely to be repeated as charterers gain the upper hand.

Trans-Atlantic cargo too was in short supply and rates for the Puerto Bolivar/Rotterdam run were near the mid-$10.00 - more than a dollar lower in a week.

Panamax

Atlantic rates slipped over the week after an active bout of fixing early on, but fewer cargoes coming into the market.

Charterers gained the advantage and held off fixing.

Rates eased in the North Atlantic with rates for the shorter rounds sliding and a 2013, 76,000mt charged $15,000 from Hamburg for a Murmansk or Baltic round, with Continent or Mediterranean redelivery.

A similar size mid-September in the US Gulf went at $13,250 and a $325,000 bonus for a trans-Atlantic run.

However, rates for EC South America/East runs remained steady with LMEs still seeing rates in the mid $15,000s and mid $500,000s, and Kamsarmaxes mid $16,000s and mid $600,0000s.

In the East, rates were under pressure with a report today of a 2008-built, 75,000mt Hudong type fixing at under $10,000 daily from CJK for an Australian round.

Supramax

The Asian market led the way this week boosting values on the BSI. Limited period activity was evident, but a 63,000mt was fixed, delivery US Gulf, for six to eight months, redelivery Atlantic at $16,500.

In the Atlantic, brokers noted a slight weakening especially from the Eastern Mediterranean where a 63,000mt was fixed delivery for a Canakkale trip to SE Asia at $21,000.

Demand remained from the US Gulf for trans-Atlantic business, but little reported. Limited fresh cargo from EC South America saw rates trading sideways.

A 61,000dwt was fixed delivery Santos mid-September to Chittagong with sugar at $15,100 plus $510,000 ballast bonus. The Asian sector remained active with rates still firm especially in SE Asia.

For Indonesia business, a 61,200dwt was reported fixed delivery Shekou trip via Indonesia, redelivery WC India at $13,500.

Handysize

The Handysize Index remained a positive zone in the short week with brokers generally optimistic.

Ships coming open Skaw-Cape Passero range faced a brighter market as the week closed but elsewhere rates were flat.

A 35,000dwt open in the Continent was fixed for a round coal trip at $10,800. Rates from the Black Sea reportedly climbed above $10,000 for various directions.

Period business included a 37,000 open Karachi, fixed for three to five months at $10,750, redelivery worldwide.

From EC South America, an Eco 43,000dwt was booked to move sugar to the Middle East Gulf at $14,000 basis Santos plus a $400,000 bonus.

A 34,000dwt was fixed from Upriver to the Continent at $11,000.

In the East, rates were a touch healthier and a 28,000dwt open Campha was booked to move steel to Thailand at $7,950, while the longer run from Thailand to West Africa, a 34,000dwt, went at $7,500 for the first 65 days and $9,500 thereafter.


FREIGHTOS BALTIC CONTAINER REPORT

The top five indices are all up on last week and also all up on last year, a sure sign that peak season is now in full swing.

China-West Coast rates are 34% higher (China-East Coast 35% higher) than at the same time last year.

With recent General Rate Increases (GRI) sticking, it's no surprise that, on top of the 1 September increase, some carriers have announced a GRI for a 15 September GRI as well - making it the 17th so far this year.

As well as improved carrier discipline, other factors are at play, like advance ordering to beat the new tariffs on China imports.

This issue may be masking an underlying rise in demand, and in itself will have a limited impact on pricing.

Recent typhoons in East Asia have caused disruptions, especially rollings caused by ships skipping a scheduled docking. Hurricane Lane also briefly impacted cargo in and out of Hawaii this past Saturday.


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.