Baltic Exchange Shipping Insights

DRY BULK REPORT

Capesize

Following the holidays, activity increased in both the Pacific and Atlantic Basins.

The 5TC average rallied, closing at $8,596, up $1,972 from last week. Major miners out of Western Australia were active all week supporting and lifting freight rates.

The C5 is now fixing at over $6.00, with unconfirmed talk of $6.40 concluded.

Earlier in the week the 'Maran Harmony' (180,391dwt, 2010) open CJK fixed a West Australia round voyage at over $10,000, with some period tonnage fixed in the $17,000s for 12 months.

The 'Anangel Happiness' (177,720dwt, 2008) prompt in Ijmuiden, fixed a Colombian round voyage at $10,500 for 45 days.

There were rumours of Trafigura fixing $14 for Sudeste to Qingdao loading mid-May, with Seven Island to Oita being fixed at around $13.85 by Rio.

Panamax

Easter holidays impacted the market last week, with only minor movements in the index.

Baltic mineral trades were very active, so too were South American fronthaul grains.

For modern Kamsarmaxes, rates again creeped up slightly to around $15,500 plus $550,000 ballast bonus.

Activity elsewhere was limited, but sources said this had been offset by tight tonnage supply in the North Atlantic.

In the Pacific, the North started brightly, with charterers concentrating on bigger units.

However, Southeast Asia was the week's driving force, especially for smaller Panamax vessels which saw a large volume of fixing.

The recently busy period market seemed to slow down as the week went on, however, a Post Panamax went for five to eight months at $13,000 basis delivery/redelivery in the Atlantic.

Supramax

A story of two halves, with the Asian basin gaining ground, whilst in the Atlantic some areas lacked fresh impetus.

Period activity remained sparse, but a 63,000dwt vessel open Japan fixed for a short period at around $11,000.

The US Gulf traded sideways, with Ultramax vessels seeing in the mid-upper $12,000s for trans-Atlantic grain runs.

East Coast South America remained finely balanced, a 56,000-tonner fixing in the mid $12,000s, delivery Recalada, for a trip to Egypt.

Asia fared better, with a 61,000dwt ship open Kaohsiung, fixing a trip via Indonesia, redelivery in the Arabian Gulf, at $11,500.

A 54,000dwt vessel open Gresik fixed via Australia, redelivery China, in the mid $12,000s.

Activity remained from the Indian Ocean, a 61,000-tonner fixing delivery South Africa trip to the Far East at $12,000 plus $200,000 ballast bonus.

Furthermore, a 56,000dwt ship fixed delivery Mumbai trip via West Coast India, redelivery Chittagong with a clean cargo, in the upper $8,000s.

Handysize

It was a flat week in the Handysize sector, reflected on the Baltic Handysize Index (BHSI) moving very little overall.

Limited period activity surfaced, but a 35,000dwt vessel open Kaohsiung, was fixed for 10 to 13 months trading, excluding the Gulf of Aden transit, in the low to mid $9,000s.

From the Atlantic, East Coast South America lacked fresh impetus and rates struggled according to brokers.

It was a similar scenario in other areas, including the Mediterranean and the Continent.

A 33,000dwt ship was fixed for a grain run from Rouen to Algeria at $7,400.

From North Coast South America, a 34,000-tonner was fixed delivery Fazendinha, early May dates, for a trip to Norway at $11,000.

The Asian arena remained finely balanced, with a Chinese controlled 38,000dwt vessel open Southeast Asia fixed a Pacific round at $9,000, while a 38,000dwt ship open Singapore fixed a trip to East Coast India in the mid $5,000s.

With widespread holidays coming up it will be interesting to see the moves.

TANKER MARKET REPORT

VLCC

Last week's brief rally fizzled out and the market for 270,000mt from the Middle East Gulf now sits at around WS 42.25 to China, with a short run to Malacca covered at WS 40.

Going west, rates for 280,000mt to the US Gulf are around WS 20.5 Cape to Cape.

260,000mt West Africa to China is hovering around WS 44.5, whilst from the US Gulf it's around $5.2 million, Hound Point to Korea went at $4.85 million.

Suezmax

Post Easter saw tonnage building and rates eased accordingly.

West Africa to Europe for 130,000mt is now in the low WS 60s, with WS 60 agreed to the US Gulf.

Black Sea rates similarly weakened to around WS 80 for 135,000mt cargo. This was in contrast to low WS 90s a week ago.

Aframax

Rates for 80,000mt from Ceyhan were steady at around WS 75, while an attractive Sidi Kerir to Portugal cargo fixed at WS 65.

In Primorsk, the market for 100,000mt nudged up seven points to around WS 82.5, while the 80,000mt cross North Sea was steady at WS 92.5 level.

There was little change for the 70,000mt Caribs up coast market, which stayed at around WS 75.

Clean

Middle East Gulf to Japan, basis 75,000mt, jumped almost four points to WS 101, with 55,000mt going at WS 90.

As cargo volumes increased, the rates for 37,000mt Continent to USAC firmed over 30 points to low WS 170s.

The 38,000mt trade from the US Gulf to UKC held in the mid WS 70s.

Both the 'Freight Derivatives and Shipping Risk Management' and the 'Advanced Freight Modelling and Trading' Baltic Exchange training courses return to Singapore in July.

For more information, or to register for either of these courses, visit: bit.ly/baltictraining

This report is produced by the Baltic Exchange.

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