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Baltic Exchange Shipping Insights

A roundup of last week's tanker and dry bulk market




Another week of gains as the Atlantic basin continues to be pressurised on tonnage and Brazilian cargoes keep up a steady flow.

The Capesize 5TC opened the week at $26,705 to close Friday at $32,765, an increase of more than 22%.

The Brazilian iron ore market was strong early in the week, with most charterers, owners, operators and traders all present at some stage.

Vessels traded hands regularly and at levels that lifted at a startling rate.

Brazil to China C3 rate levels varied wildly on date-specific terms with usually only the trade participants knowing the true value at that time.

The Pacific took a back-step to this activity but was equally affected by it.

Vessels booked in on period and trip charters in the Pacific were equally seen traded for Pacific or Atlantic cargoes, as the transatlantic C8 and Pacific round voyage C10 both lifted to attract vessels.

The West Australia C5 route opened at $9.277 to close Friday at $10.90.


It was another week of continued improvement on all routes.

The North Atlantic saw fewer trades last week, but with the limited tonnage, round voyage rates rose over $1,700 daily.

Fronthaul trade jumped by more than $3,000 daily, with a Panamax reported at $32,000 for a trip via Murmansk to China of about 70 days duration.

South America seemed to pause midweek, however, activity quickly resumed and rates are now higher even for forward positions into the second half of August.

The Pacific also witnessed steady increases finishing the week up $1,550 for rounds.

There were few stand-out fixtures from Australia, with a Panamax taken for a salt stem at $20,000 from South China.

The period market was especially busy at the beginning of the week, with owners happy to take advantage of the present bullish spot market, which looks set to continue in the near term.


The Baltic Supramax Index (BSI) made solid gains over the week with demand from most areas.

The period market was active, with new-build Ultramaxes fixing between $12,000 - $13,000 ex-yard for a year.

Cover was also sought in the Atlantic on a 60,000dwt vessel open Mediterranean fixing four to six months redelivery in the Atlantic at $15,500.

Owners remained in the driving seat from the Atlantic. A 56,000dwt ship covered a trip from Egypt, via the Black Sea, redelivery in the Philippines, at $24,500.

The US Gulf remained steady, with Ultramaxes seeing mid-upper $20,000s for fronthaul business.

The Asian arena saw increased activity and stronger numbers being concluded.

Ultramaxes achieved in the upper $10,000- $11,000s for Pacific rounds.

From Southeast Asia, Indonesian rounds remained firm, with a 61,000-tonner fixing delivery Vietnam, via Indonesia, redelivery South China, at $11,500.

From the Indian Ocean a 57,000dwt vessel, open Arabian Gulf, fixed for two to three laden legs, redelivery Arabian Gulf/Japan range, in the mid $14,000s.


The overall Baltic Handysize Index (BHSI) climbed further this week, with the Pacific routes making gains and finally back in the positive.

The US Gulf showed some minimal easing signs, whilst firm rates remained in the East Coast South America market.

At the beginning of the week, a 39,000dwt ship was fixed from Karmoy for a trip to Veracruz at $7,500.

$23,000 was registered on a 38,000dwt vessel, basis Recalada to China.

From the Black Sea, a 32,000-tonner was fixed to India at $15,000.

In the East, brokers suggested the market was firming with less spot tonnage.

A 34,000dwt ship open South Australia was fixed at $9,000 for a two to three laden leg trip.

A small Handysize vessel open Indonesia was fixed at $8,000 for a trip back to the Far East, and a North Pacific trip paid $6,500 on a 33,000dwt ship basis Japan delivery and Australia redelivery.



Rates for 270,000mt Middle East Gulf to China slipped to WS 43.5, down two points.

However, with a $50/mt fall in bunker prices over the week, earnings have remained flat.

The assessment for 280,000mt Middle East Gulf to US Gulf basis Cape to Cape remains at WS 19 level, while 260,000mt West Africa to China and 270,000mt US Gulf to China both maintained last week's levels at WS 46 and $5m respectively.


Rates for 130,000mt West Africa to the UK-Continent saw a slight improvement to WS 60 level, while 135,000mt Black Sea to the Mediterranean slipped a couple of points to low WS 70s.

The market for 140,000mt Basrah to the Mediterranean has hovered around WS 35 level.


The Mediterranean sector proved to be weaker this week, with rates for 80,000mt Ceyhan to the Mediterranean now at WS 85, down from WS 92.5 a week ago.

Meanwhile, rates remained steady in North-West Europe, with 80,000mt Cross-North Sea at WS 87.5/90 and 100,000mt Baltic to UK-Continent at WS 62.5/65 region.

Across the Atlantic, rates firmed a dozen or so points for 70,000mt Caribbean to US Gulf to WS 80.

70,000mt US Gulf to the Mediterranean saw a rise of around five points to WS 70 level.

In the Middle East, rates fell another couple of points to end the week at WS 107.5 for 80,000mt Arabian Gulf to Singapore.


The market for 75,000mt Middle East to Japan remained flat at WS 80.

55,000mt Arabian Gulf to Japan ended the week at WS 95 level, a slip of about 2.5 points.

The 35,000mt Middle East Gulf to East Africa trade fell 5-7.5 points to low WS 120s.

In Europe, rates for 37,000mt Continent to the US Atlantic Coast continued the recent downward spiral to high WS 90s, representing a loss of another 20 points and remains under pressure.

The backhaul 38,000mt US Gulf to UK-Continent ended the week at mid WS 60s, down 7.5 points.

This report is produced by the Baltic Exchange.

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