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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

Middle East Gulf rates remained unchanged, with Thailand fixed at WS 86 and China rates around WS 83.5/84 for 270,000mt.

US Gulf-bound 280,000mt went at WS 31 Cape/Cape. West Africa/China fixed at WS 79.5, basis 260,000mt.

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US Gulf to South Korea went at $8 million, and Venezuela to China at $8.2 million.

Occidental covered US Gulf/Singapore-China at $6.75-$7.75 million respectively.

Hound Point to South Korea went at $6.95 million and Skaw/China at $6.65 million.

Suezmax

West Africa rates eased slightly, with a long run to Wilhelmshaven fixed at WS 95 for 130,000mt.

Black Sea/Mediterranean rose 2.5 points to WS 107.5 for 135,000mt, but charterers conceded higher numbers to tempt owners east with South Korea paying $4.0-4.1million, up $400,000.

Aframax

Mediterranean rates regained ground with Ceyhan and Black Sea up 10 points to WS110, basis 80,000mt. Firmer rates were paid, with further gains expected in the Baltic and North Sea with tonnage tight.

A 100,000mt cargo from the Baltic jumped 15 points to WS 115 and cross North Sea 80,000mt paid WS 132.5.

The Caribbean Aframax market saw a 50-point gain to WS 205-210 for 70,000mt from Venezuela to US Gulf.

Panamax

A buoyant Caribs/up coast market saw rate-gains of 55 points, keeping owners from ballasting to northwest Europe, prompting a 10-point hike for 55,000mt from the ARA/US Gulf to WS 125 despite slow trading.

Clean

The Middle East Gulf/Japan trade saw rates for 75,000mt steady at WS 100 but firming 10 points to WS 130 for 55,000mt.

The Continent/USAC trade peaked at WS 135 before easing to WS 127.5 for 37,000mt.

Healthy activity in the 38,000mt backhaul prompted a 32.5-point jump to WS 132.5.


DRY BULK REPORT

Capesize

A positive end to last week after a shaky start, with a Coaltrans taking participants out of the market early on and with rates slipping.

However, rising iron ore prices and renewed talk of Vale fixing ships from Brazil for early November, from Tubarao to Qingdao, in the low $20.00s, steadied nerves.

Others fixed later November cargoes, allegedly at timecharter rates, equating to around $22.50. West Australia/China rates slipped to the low $8.00s but resistance was evident as the week closed, with rates nudging the mid-high $8.00s with reports of ships fixing on timecharter showing over $9.00.

The North Atlantic was slow, although a 6-15 November, 160,000dwt, 10% cargo, fixed Puerto Bolivar/Rotterdam at just under $10.00.

A well described 180,000dwt, with Gijon delivery secured $22,000 or $22,500 daily for a transatlantic round.

NYK secured an NSSMC tender midweek to move a cargo from Port Cartier to Japan on voyage, but a timecharter equivalent in nearing $35,000.

Panamax

Coaltrans, in Barcelona early last week, disrupted trading with many travelling.

However, the second half of the week failed to show improvement. The North Atlantic was bereft of fresh enquiry for most of the week, although a well described Imabari 84,000dwt fixed a US Gulf round voyage at $19,500 from the Continent.

However, this was a fleeting high point as only prompt ships seemed to cover, while the rest waited, hoping for new business.

The South American market was unusually slow with early ships still able to fix at strong numbers, evidenced by an October Kamsarmax fixing, basis Cape of Good Hope, at $18,150 plus $425,000 ballast bonus.

But again, this appeared to be an exception, as most charterers with November stems held off and bid below last done.

The Pacific saw a large volume of fixing, with Indonesia again the driving force, and vessels in the South maintaining strong returns whilst vessels in the North were forced to lower their expectations.

Supramax

A firm week in the Atlantic, especially in the South for vessels able to make October cancelling.

An Ultramax was fixed for a trip from east coast South America, redelivery Chittagong, at $17,000 plus $700,000 ballast bonus.

The US Gulf remained evenly balanced on both supply and demand, with a 56,000dwt fixed for a trip to west coast Central America at $24,500.

Again, demand was seen from the Mediterranean, with a 63,000dwt fixed delivery Canakkale via the Black Sea, redelivery Continent at $19,000.

Charterers in both basins remained in the market for period cover.

A 63,800dwt was booked, delivery Magdalla, for five to seven months trading at $15,000.

Rates remained firm during the week from the Indian Ocean.

A 64,000dwt fixing, basis delivery South Africa, for a trip far east at $14,000 plus $400,000.

A slow start further east but as the week closed, improved numbers were discussed.

Handysize

Whilst rates largely traded sideways in the Asian market, areas in the Atlantic remained firm.

Period activity came to light, with a 32,000dwt linked to a four to six months trading, redelivery Atlantic, in the mid $12,000s.

And a 34,000dwt fixed to short period at a similar level basis, delivery Continent.

Improved numbers were seen from the eastern Mediterranean and a 37,000dwt agreed, delivery Canakkale, for a trip via the Black Sea, redelivery Tunisia, at $18,500, option redelivery Black Sea at $17,500.

Healthy numbers were discussed from east coast South America, with a 36,500dwt booked, delivery Rio Grande, for a trip, redelivery Algeria, in the mid $16,000s.

In Asia, a lack of fresh business slowed the pace. A 37,000dwt was fixed, delivery China, for a trip with steels in the mid-high $10,000s, and a 30,000dwt fixed, delivery Singapore, via western Australia, redelivery Arabian Gulf, at $8,000.


FREIGHTOS BALTIC CONTAINER REPORT

Some ocean carriers have applied a mid-month (October 15) GRI for China-US West Coast in the $200-$400 range. That should translate into about a $200 price increase next week.

After several large carriers cut FAK rates on the China-North Europe, prices fell heavily for four weeks, finally leveling off this week.

At $1,486, they are 2/3rds of where they were five weeks ago.

This dramatic drop in China-North Europe (coupled with a corresponding 12% drop in China-Mediterranean prices) has dragged global container index prices down 8% over the past five weeks.

Transpacific prices have barely moved in recent weeks because of the Golden Week holiday.

That will change next week when mid-month GRIs in the $200-$400 range applied by some carriers kick in.

That should translate into about a $200 price increase next week.

Carriers operating on the China-North Europe lane had cut services in October to bring supply back closer to demand.

Subsequently, this effort was undermined by several carriers cutting their FAK rates. Prices dropped by a $715 over four weeks - from $2,201 on September 9 to $1,486 last week.

They have now levelled off, coming in at $1,486 again this week - 2/3rd of the price five weeks ago.

The Freightos Baltic Indices reflect weekly spot rates for 40-foot containers based on 12 to 18 million price points collected every week on 12 main shipping trade lanes.

The data includes a headline index - the FBX Global Container Index (FBX) - a weighted average of the 12 underlying route indexes.

This data is published every Sunday. See www.balticexchange.com/market-information/containers/

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.

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