Baltic Exchange Shipping Insights

DRY BULK REPORT

Capesize

The market was a white knuckled ride this past week as a large downside movement shed value quickly leaving many in bewilderment.

The 5TC opened the week at $32,765 and closed on Friday at $27,145.

It became apparent on Monday that the market was sliding. Tuesday brought about a modest decline on all routes before the storm clouds gathered. Wednesday it dropped throughout the day, with most activity centred on C3 and C5 routes.

Thursday erosion continued on all routes, but by the end of the trading day a floor had been found to close the week with a small rebound.

The West Australia to China rollercoaster opened the week at $10.90, rising quickly to $11.145, then plummeted to $9.336 to close out the week at $9.77.

The Brazil to China C3 big dipper opened the week at $27.518, reached a low of $22.614, before closing out at $23.145.

Rate levels are still considered high for recent times while the nerves of a few are surely being tested.

Panamax

There was a change in sentiment last week, with rates coming under pressure and owners struggling to maintain last done levels.

It was expected after a prolonged period of gains, although whether it is a genuine change in market direction, or a short term correction, is still a matter for discussion.

The fundamentals in the North Atlantic remain unchanged, so only early ships, or ballasters, seemed willing to reduce their ideas to find cover.

However on Friday many marked the Index down heavily.

South America was said to be very positional, with mid-August firmer than earlier or later August dates.

The East witnessed a sharper correction as the recent unexpected levels had been driven by the rapidly improving Atlantic market, Cape and FFA markets, with the latter two softening this week.

Period trades have also been affected by the decline in paper values, although these appeared to recover some ground by the end of the week.

Supramax/Ultramax

It was a week of mixed fortunes, with a change of direction, mainly seen in the Atlantic, from the recent increases on the Baltic Supramax Index (BSI).

Limited period activity surfaced, but a 52,000dwt vessel open South China was fixed for 9-11 months trading at $9,500.

Key areas such as the US Gulf and East Mediterranean saw slides in rates as fresh enquiry became scarce towards the week's end.

A 62,000-tonner was fixed from the US Gulf to the East Mediterranean at around $18,000. Brokers also reported lower activity than of late from East Coast South America.

The Asian market remained active, but routes saw negative moves towards the end of the week. Indonesian coal cargoes saw a 63,000dwt ship fixing delivery for a South China trip via Indonesia, redelivery China, at $11,700.

North Pacific cargoes saw a 53,200dwt vessel fixed delivery Tonda via the US West Coast, redelivery China with petcoke, at $9,350.

Indian Ocean rates remained steady, a 55,000dwt vessel covering delivery South Africa, redelivery Arabian Gulf - West Coast India, at $12,750 plus $275,000 ballast bonus.

Handysize

Whilst other sectors showed declines last week, the Baltic Handysize Index (BHSI) still made gains overall, despite signs of slowing down in the US Gulf.

The market calmed down across most of the key areas in the Atlantic, whilst the Pacific market remained firm and stable.

A 30,000-tonner open Port Said was booked for a trip redelivery in the US Gulf at $9,000 early in the week.

A 39,000dwt vessel was fixed from North Brazil for a grain run to the US Gulf/Caribbean range at $18,000.

In the east, a 28,000dwt ship open Thailand was failed on subjects for moving sugar to Indonesia at $7,000 and later on was fixed again for a similar run at the same level.

A 33,000-tonner open Indonesia was fixed for an Australia round voyage at $9,500 and a 38,000dwt ship open in the Philippines was fixed for Southeast Asia redelivery at $10,500.

TANKER MARKET REPORT

VLCC

Rates for 270,000mt Middle East Gulf to China lost a point to WS 42.5 with talk of KPC fixing 'east' at WS 40.5. The assessment for 280,000mt Middle East Gulf to the US Gulf, basis Cape to Cape remains at WS 18.5/19 level.

260,000mt West Africa to China shed a point to WS 45. Occidental reportedly fixed US Gulf to China at around $5.3 million.

Hound Point to Korea went at $4.5 million.

Suezmax

It was a better week for owners in West Africa, with a replacement cargo fixing 130,000mt at WS 72.5.

Subsequently, Total paid WS 73.5 ex-Djeno and then Exxon fixed off 9 August at WS 80, all to Europe, in contrast to WS 60 a week ago.

Rates for 135,000mt Black Sea to the Mediterranean was steady at between WS 72.5/75.

The market for 140,000mt Basrah to the Mediterranean has hovered around the low to mid WS 30s.

Aframax

The Mediterranean sector proved uneventful, with rates for 80,000mt Ceyhan to Mediterranean steady at around WS 85.

Meanwhile, rates remained flat in North-West Europe, with 80,000mt Cross-North Sea at WS 82.5/85, although, West Coast Norway load is said to have been fixed at WS 80.

The market for 100,000mt Baltic to the UK-Continent held in the low WS 60s.

The 70,000mt Caribbean to US Gulf trade was unchanged at WS 80, while 70,000mt US Gulf to the Mediterranean gained around five points to WS 75 level.

Clean

The market for 75,000mt Middle East to Japan remained flat at WS 80, with 55,000mt Arabian Gulf to Japan hovering between WS 95/97.5 level.

The 35,000mt Middle East Gulf to East Africa market settled at between WS 125/127.5 region.

In Europe rates for 37,000mt the Continent to the US Atlantic coast recovered 10 points to WS 105 while the backhaul 38,000mt US Gulf to UK-Continent gained over 20 points to now sit in the low WS 90s.

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.