Baltic Exchange Shipping Insights

DRY BULK REPORT

Capesize

The market continued in an unusually steady ascent last week. With no major news in the market, each day improved on the last, breaking with the recent boom-bust volatility.

Owners appear to be less inclined to overplay their hand, while taking the smaller improvements as they come, in what appears to be a sustainable market.

The Cape 5TC opened the week at $12,987 and closed out Friday at $15,007.

The West Australia C5 route opened the week at $7.223 to close at $7.732, with timecharter rates in the Pacific pushing up respectively, if not more so.

The Atlantic, while still minimal on activity, lifted up on the C3 Brazil to China route, with a return of Vale having market requirements.

Fronthaul levels lifted approximately $4,500 to close Friday at $29,227 as tonnage tightness takes its toll coming into the later stages of Q2.

Panamax

Despite being a disrupted week, with several holidays in the East, rates in the Pacific appeared to resist the negative sentiment emanating from other areas.

There was a surprising volume of fixing spread across the various load areas. The North Pacific saw a steady trickle of enquiry, but minerals from Australia and Indonesia were more dominant.

However, the index softened slightly throughout the week. The Atlantic began the week supported by an active North Coast South America fronthaul market, which took a good number of Atlantic delivery ships at between $19,000 and $19,500, basis Gibraltar, to the East.

However, the lack of fresh transatlantic stems eventually told, with rates under a great deal of pressure at the end of the week.

Talk of a Panamax concluded below $7,000 for a Baltic round while a spot Kamsarmax in the US Gulf, waiting for two weeks for a coal cargo, did little to settle owner's nervousness.

Supramax

It was a lacklustre week overall, with the Baltic Supramax Index (BSI) losing ground. This was not helped by the widespread holidays.

Period activity was limited, but a 62,000dwt ship was fixed delivery Arabian Gulf, for three to five months trading at $12,500.

The Atlantic started the week positively, however, as it progressed, a build-up of tonnage supply changed sentiment.

The US Gulf lost ground, with a 56,000dwt vessel fixing for a transatlantic run to Egypt at $12,500. East Coast South America fared better, but rates started to trade sideways.

A 57,000dwt ship was covered at $14,000, delivery Recalada, for a trip to the Mediterranean. From the Mediterranean, a 56,000-tonner fixed delivery Greece, with redelivery in West Africa at $9,250.

Asia lost ground, with a 63,000dwt vessel, open CJK, fixing at $8,000 for an Australian round.

The Indian Ocean saw slower activity than of late, a 56,000-tonner, open Mundra, fixing a trip to East Coast India-Bangladesh at $12,150.

Handysize

The Baltic Handysize Index (BHSI) continued climbing. Minor daily improvements maintained the index in the positive territory.

In the Atlantic, a 34,000dwt ship was fixed from Southwest Pass to Algeria, with grains, at a rate in the low $7,000s.

A 32,000dwt vessel, open spot in Algeria, was booked for moving fertilisers to South Brazil at $5,000, basis delivery Casablanca.

A 35,000-tonner was linked to a trip to Otranto at $7,800, basis delivery Dneprobugsky.

It was a short week in the Pacific, with public holidays in Singapore, Korea and China during midweek.

Early in the week, medium to large handysize vessels were reportedly fixed for loading from Australia, at $11,000 basis Kwinana, to Indonesia, or, $8,000 basis South China to Japan.

A 39,000dwt ship, open CJK, was fixed, and failed, on subjects for some business within the Pacific at $8,000, but the details were not clear. A 28,000-tonner, open Jebel Ali, was fixed for moving urea, via Ruwais, to Kosichang at $6,025.

TANKER MARKET REPORT

VLCC

Rates have been shaved just a point or two over the course of the week, with 270,000mt from the Middle East Gulf to China now at WS 38.

US Gulf discharge was being assessed, with 280,000mt at WS 17-18 level basis Cape to Cape and 260,000mt West Africa to China at WS 39.5.

Meanwhile, an oil-major reportedly fixed 280,000mt from Hound Point to South Korea at $4.35m. Rates for 280,000mt from the US Gulf to China are drifting sideways at the $5m level.

Suezmax

West Africa Suezmax rates gained this week, up 15 points to WS 70 region, basis 130,000mt, for discharge in the UK-Continent range.

Petrogal fixed Angola to Portugal at WS 72, while Philadelphia discharge went at WS 68.75.

Rates for Black Sea to the Mediterranean voyages gained a couple of points to WS 80 level, basis 135,000mt.

For Basrah to the Mediterranean voyages, the market stayed flat at around WS 27.5 for 140,000mt.

Aframax

The rates for 80,000mt, Ceyhan to the West Mediterranean, lost more than a dozen points this week, down to WS 80 level.

However, a Sidi Kerir to Portugal trip covered at WS 70. Elsewhere, voyages from the Baltic to the UK-Continent were flat at WS 75, basis 100,000mt.

Cross North Sea trips carried the same sentiment at WS 100, basis 80,000mt.

Clean

Rates for 75,000mt from the Middle East Gulf to Japan were flat at WS 105 to 107.5, alongside the 55,000mt voyages holding at WS 117.5.

The biggest movers this week, albeit downwards, were transatlantic MRs.

The market for 37,000mt Continent to the US Atlantic Coast fell, before recovering slightly to WS 117.5, 10 points down week-on-week.

The reverse trip of 38,000mt from the US Gulf to the Continent was similarly down, this time 7.5 points to WS 70 region and remains under pressure.

30,000mt cross Mediterranean voyages are now at WS 145 level, down 12 points for the week. 30,000mt trips from the Baltic to the UK-Continent firmed 2.5 points to WS 120.

Baltic training courses this July in Singapore

The Baltic Exchange 'Freight Derivatives and Shipping Risk Management' and 'Advanced Freight Modelling and Trading' training courses return to Singapore between 1-4 July. To find out more, or to book your place, visit http://bit.ly/baltictraining.

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.