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Baltic Exchange Shipping Insights

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

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DRY BULK REPORT

Capesize

This week marked further considerable decline in rates for the Capesize market. While the market was tempered at the beginning of the week with a slight uptick, this ray of hope for owners was cast aside for the market to build momentum to the downside.

Slipping further day on day, the market closed the week at $24,916, after opening earlier in the week at $30,169.

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Market voices on:

The Pacific Basin was constant this week in activity heard.

West Australia to China C5 traded from $9.145 down to $8.505, with both Rio Tinto and FMG often heard trading.

The Atlantic was the real mover this week. The Atlantic basin lost more than half the premium it had against the Pacific Basin, from $15,275 down to $7,287, which will sure affect the attraction of the western trades.

The Transatlantic C8 closed the week at $26,850. This was said to stem from a complete lack of demand for vessels and recent fixtures being heavily offered on by multiple vessels. The market is likely to continue its downward trend into early next week as Golden week begins in China.

Panamax

The BPI dropped under 2000 to end the week at 1804. Trading remained active, but rates in both basins just gradually fell throughout the week.

On the period front, a 76,000dwt vessel open in mid-China was fixed for six to nine months at $12,750, with redelivery worldwide.

A typical run from East Coast South America to Singapore-Japan range paid from $16,000 to $17,000.

This was dependent on the vessel size for stems, with second-half October dates plus a ballast bonus of $600,000 to $700,000.

Similar levels were seen for a trip from the US Gulf to Southeast Asia. Indonesia coal trips were reportedly done in the mid $12,000s on a 75,000dwt ship, delivery Indonesia to India, or, in the high $11,000s, on a LME type delivery, Southeast Asia to South Korea.

From the Atlantic, a 81,000-tonner was fixed from Liverpool for a grain trip via the Baltic to China at $26,000.

Supramax/Ultramax

A poor week for the market with the Baltic Supramax Index (BSI) losing ground. Limited period activity was recorded, but a 61,400dwt ship open China, end September, went in direct continuation for a year's trading in the upper $12,000s.

The Atlantic suffered from a lack of fresh enquiry, both ex-US Gulf and East Coast South America.

The latter also seeing negative pressure from a ready supply of the larger size Panamax/Kamsarmax vessels. The only area to buck the trend was the East Mediterranean, where demand for prompt positions remained strong. A 53,800dwt vessel fixing delivery for a Turkey trip to the West Mediterranean at $20,000.

The rates were better in the early part of the week from Asia, however, with the upcoming long Chinese public holidays, pressure eased as the week closed.

A 58,000dwt ship fixing delivery Philippines, via Indonesia, redelivery China, in the mid $15,000s.

Elsewhere a 66,000dwt ship fixed from the Arabian Gulf to West Coast India at $20,500.

Handysize

A mixed bag over the last week. Rates remained healthy, activity was stable within the Atlantic, but less so from the Asian Basin. Here, routes lost ground generally.

From East Coast South America, a 28,000dwt ship was linked with a sugar run to the Central Mediterranean in the mid $14,000s.

The Mediterranean remained stable, with focus mainly centred on the larger Supramax/Ultramaxes.

A Handysize was fixed from the Black Sea to the East Mediterranean in the mid $12,000s.

Despite limited fresh information surfacing, the Continent also remained stable, with some participants commenting demand had slightly increased over the week.

In Asia, a 37,000dwt ship, open Gresik, was failed for a trip via Indonesia, redelivery Vietnam, at $12,000.

With the Chinese holidays looming, activity levels are set to drop further in the following days.


TANKER MARKET REPORT

VLCC

With 10 days having passed since the Saudi oilfield attacks, the Middle East Gulf market had calmed, and rates dipped.

Then, the next fuse was lit, with a USA blacklisting on a major Chinese shipowner for breaking US imposed sanctions on Iranian crude oil carriage.

Rates then got propelled upwards, as charterers sought to replace period contract coverage.

270,000mt to China voyages fell about seven points earlier in the week, then rose about 12-13 points to WS 75 level.

For 280,000mt to US Gulf, basis Cape to Cape, rates are assessed 3.5 points higher at WS 34.5 level.

Meanwhile a similar story was occurring for the 260,000mt West Africa to China trips, following the easing, then firming, market, with rates up 3.5 points at WS 74 level.

Rates for 270,000mt US Gulf to China rose about $400k week-on-week, to now sit at between $8.45/8.5 million.

Suezmax

Rates for 130,000mt West Africa to UK Continent dropped about 10 points to WS 85, as cargoes were in short supply for natural fixing dates.

The 135,000mt Black Sea to Mediterranean trade added another three to four points over the week to settle at WS 95 level.

In the Middle East Gulf, 140,000mt Basrah to the Mediterranean lost ground to return to very low WS 30s level.

Aframax

The Mediterranean market was on a bull-run this week, with 80,000mt Ceyhan to the Mediterranean gaining another 25 points or so to WS 140 level.

In Northern Europe 80,000mt North Sea to UK-Continent trade firmed a further seven points to WS 127 region.

For 100,000mt, Baltic to UK-Continent, a similar rise was seen, to WS 107.5/110 level.

On the other side of the Atlantic, rates remained flat, with 70,000mt Caribbean to the US Gulf at WS 150 level and 70,000mt US Gulf to the Mediterranean hovering around WS 140.

Clean

The market for 75,000mt Middle East Gulf to Japan eased a further 2.5-3.5 points to WS 92.5-95 level.

In the 55,000mt to Japan trade, owners managed to claw back about five points to WS 100-102.5 level.

In the 37,000 clean Continent to US Atlantic Coast, market rates were stable at WS 95-97.5 level.

The 38,000mt US Gulf to UK-Continent backhaul trade also remained flat at WS 70 region.

BALTIC UPDATES

Baltic Exchange Liquified Natural Gas (LNG) Reporting

Since 13 August 2019 BLNG2 (Sabine / Isle of Grain RV) has been on Public Trial. We are pleased to advise the Baltic Index Council has approved moving to Live reporting from Tuesday 1 October 2019.

TC17 - Commencing Live reporting.

Since 17 June 2019 TC17 (35,000mt, Jubail / Dar-es-Salaam) has been on Public Trial. We are pleased to advise the Baltic Index Council has approved moving to Live reporting, from Tuesday 1 October 2019.

Any feedback or comments are welcome via balticbroker@balticexchange.com


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