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Baltic Exchange Shipping Insights

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

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DRY BULK REPORT

Capesize

With typhoon Lekima gathering pace, numerous China ports were closed by the end of the week and will likely be for two to three days.

In addition to this, the national holiday in Singapore gave a weaker trend to the rates, which all lost value during most of the week before bouncing back up a bit on Friday.

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By week's end, the West Australia to China route was being rated around the $9.25 level, as rumours flowed this level had been fixed for end August dates.

Brazil to China was hovering around low to mid $21's after Vale had taken a number of vessels at this level. The Cape 5TC was published at $24,022.

With a further holiday in Singapore on Monday it remains to be seen where the levels go.

Panamax

The beginning of last week saw rates continuing to slide everywhere.

However, sentiment soon turned, driven by the limited available tonnage on the North Continent, as many Charterers scrambled to find suitable cover.

The transatlantic index rose by almost $2,000, although many felt the reality was much higher.

Rates for shorter mineral trips traded at around $20,000 on Panamax and $22,500 on Kamsarmaxes.

South American grain activity also increased, with owners able to increase offers due to renewed optimism.

A Kamsarmax reported fixed at the end of the week at $17,700 plus $770,000 ballast bonus for end August dates.

With sentiment driving the FFA market higher, the East also benefited. Despite the North Pacific remaining fairly quiet, mineral trades from Indonesia and Australia were again the driving force, combined with the option of longer round voyages via South America.

Supramax/Ultramax

As the week progressed, sentiment across both Basins rose positively on the back of stronger demand and tighter tonnage availability.

Limited period activity surfaced, with a couple of 58,000dwt ships open Baltic-Mediterranean areas being placed on subjects for short period.

From the Atlantic, demand grew from East Coast South America, a 62,400dwt vessel being covered at $17,000 plus $700,000 ballast bonus for a trip to Chittagong.

In the US Gulf a 64,000-tonner was rumoured to have covered a trip to Turkey at close to $17,000. Activity from the Mediterranean increased, a 57,000dwt ship covering delivery Canakkale via the Black Sea, redelivery Southeast Asia at $21,750.

It was a lacklustre start from the Asian arena, but as the week closed better numbers were being discussed.

A 58,000dwt vessel open Kemaman fixed for two to three laden legs, redelivery Singapore-Japan, at $12,250.

The Indian Ocean tightened, with a 62,200-tonner fixing delivery South Africa trip to Singapore-Japan at $14,000 plus $400,000 ballast.

Handysize

The market was described to be stable at the start of the week, with an evident gap between owners and charterers in both basins.

The Continent and East Coast South America began to improve since the middle of the week, however, the picture for the US Gulf remained unclear.

From East Coast South America, costal trips paid $14,000 on a 36,000dwt ship and $18,750 on a 33,000dwt ship for moving steels to Lagos.

In the East, most of the stems with first half August dates were covered and the market was expecting more orders from the Arabian Gulf or Australia with later dates.

Overall rates from the Pacific softened with a lack of volume lending support.

On the period front, a 37,000dwt vessel open East Australia was fixed for three to five months with redelivery in the Atlantic at a rate in the high $9,000s plus an undisclosed ballast bonus.

A 34,000-tonner open West Mediterranean was fixed in the $10,000s for four to six months.


TANKER MARKET REPORT

VLCC

Middle East Gulf rates improved significantly on the back of healthy enquiry and typhoons hitting the Far East.

For 280,000mt Middle East Gulf to US Gulf, basis Cape to Cape, the market now sits at around WS 25, up 3.5 points from a week ago.

A run to Brazil went at WS 35.

Owners achieved a rise of over nine points for 270,000mt Middle East Gulf to China to around WS 55. 260,000mt West Africa to China gained five points, also to WS 55.

Hound Point to Korea went at $5.3 million while 270,000mt US Gulf to China gained $850,000 to around $6.25 million.

Suezmax

Rates for 130,000mt West Africa to the UK-Continent came under downward pressure, easing around five points to very low WS 60s.

The 135,000mt Black Sea to the Mediterranean trade was drifting down marginally to around WS 70 level.

There was a flat sentiment for 140,000mt Basrah to the Mediterranean which still hovers around WS 32.5.

Aframax

80,000mt Ceyhan to the Mediterranean shed five points to low/mid WS 70s, depending on the precise voyage.

Black Sea to Mediterranean trade was steady at WS 80.

In the 80,000mt cross-North Sea trade there has been modest improvement with West Coast Norway loading paying WS 82.5, up from a low of WS 80.

A Sullom Voe load is said to have gone at WS 97.5.

In the Baltic, rates for 100,000mt to UK-Continent dipped down to WS 50, before recovering to WS 55, with WS 57.5 agreed for a voyage including short options.

The 70,000mt Caribbean US Gulf trade lost 2.5 points to WS 72.5, while 70,000mt US Gulf to the Mediterranean fixed at WS 65, before a prompt replacement obtained WS 72.5.

Clean

The market for 75,000mt Middle East Gulf to Japan saw a big jump at the start of the week, climbing 30 points to WS 110 and now sits at WS 115 level.

Likewise, the 55,000mt to Japan trade gained 20 points to sit at close to WS 117.5, which was agreed on replacement tonnage.

The 35,000mt Middle East Gulf to East Africa market firmed 22.5 points to WS 155, but sentiment is softer now.

In Europe it was a volatile week, with the market rising to WS 115 before easing back to WS 100 and remains under pressure.

In the backhaul 38,000mt US Gulf to UK-Continent trade, rates gained almost 15 points to WS 95, with a base oil cargo covered at WS 97.5 before easing back to low WS 90s.


This report is produced by the Baltic Exchange.

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