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Baltic Exchange Shipping Insights
DRY BULK REPORT
The end of the week brought about a small increase in sentiment heading into a long weekend for some regions.
After sustaining a drop in value for the first part of the week, the 5TC now appears to have turned its fortunes around to settle the week out almost unchanged.
5TC opened $25,117, dropped to $23,740 midweek before closing up Friday at $24,945.
The West Australia to China C5 continues to trade its range closing Friday at $9.268 up from $8.823 mid-week with healthy trading activity throughout the week from most charterers.
The Atlantic is starting to see an increase in transatlantic activity, although fronthaul business remains subdued heading into November.
IMO 2020 fuel compliance considerations are coming to the forefront of trading as replenishment bunkers after fixing voyages and timecharter trips will likely straddle this transition period.
The week ended on a weaker note as it seems more tonnage is open and less fresh cargo coming to the market.
There have been a number of shorter Baltic round voyages fixed with rates varying from $14,000 to $16,500.
There was less visibility for transatlantic trips, but some voyage fixtures were concluded such as TKS fixing the Key Light (83,027dwt, 2012 NYK) for 75,000 min/max coal Baltimore/Rotterdam loading 5/15 November at $11.
Cargill fixed the Braveheart (74,117 dwt, 2001) in ballast basis APS Trombetas early November for a trip to Aughinish $15,000 + $75,000.
The Pacific has been fixing around $13/14,000 for Indonesia coal to SE Asia and a number of vessels had fixed for Australia to India also in the $13,000 level.
With the Coaltrans event taking place in Europe at the beginning of the week the market started in slow mode and never really got going.
Rates across both basins saw negative movement.
Very little period activity was discussed.
From the Atlantic, an Ultramax fixed at around $25,000 for a trip delivery US Gulf redelivery south east Asia and for transatlantic runs Supramax were seeing in the mid-teens.
East coast South America lacked impetus, but a 61,000-dwt was reported fixed for a trip redelivery west coast South America at $20,000.
The Mediterranean saw a limited action, lengthy tonnage lists kept rates at bay.
From Asia rates remained under pressure with the north lacking fresh enquiry.
A 58,000dwt fixing delivery Yangjiang for a nickel ore run back to China in the mid $14,000s.
A 61,000 fixed delivery Jakarta trip via Indonesia redelivery south China at $18,250.
From the Indian Ocean a 58,000dwt fixed delivery South Africa trip to Pakistan at $12,700 plus $270,000 ballast bonus.
A lacklustre week for the Handy market with rates losing ground.
Limited period activity surfaced. A 38,000dwt fixing from the United Kingdom for 4-6 months trading redelivery Atlantic at $11,500 and a 34,000 covering at $8,600 delivery far east for 4-6 months.
In the Atlantic east coast South America saw larger Handies fixing in mid-teens region for transatlantic runs.
From the Continent a 28,000dwt was fixed from the Continent to the Mediterranean with grains at around $10,000 daily.
For short east Mediterranean Black Sea rounds a 33,000dwt was fixed in the mid low $12,000s.
The Asian arena similarly lacked impetus, a 33,000-dwt open south east Asia getting upper $9,000s for a salt run to China.
A 36,000-dwt was reported fixed delivery Xingang trip via Bohai Bay redelivery east coast India at $9,300 daily.
All eyes are looking to the upcoming week to see further direction.
Sentiment again played a big part as the markets fell globally.
In the Middle East the tonnage list grew in the near term as vessels were released from their subjects alongside lower demand from charterers.
The latest assessments rate 270,000mt Mideast Gulf to China at WS97.5, down 20 points week-on-week, although there is a report today of an oil major on subjects to Singapore-Thailand range at WS95.
Meanwhile 280,000mt MEG/USG basis Cape-Cape is assessed 12.5-15 points lower than a week ago at WS60.
In the Atlantic area rates have fallen 10 points to WS100 level for 260,000mt West Africa/China, and 270,000 USG/China is now valued at $11m, down from $12.9m level last Friday.
Another week of negative sentiment has seen the market for 130,000mt West Africa/UKC fall about 30 points to WS150 level and 135,000mt Black Sea/Med has been reduced by nearly 45 points to WS167.5/170 level.
140,000mt Basrah/Med rates fell back to WS100 region down about 50 points for the week.
Rates in the Mediterranean fell away, on the back of a reduced number of quoted cargoes and a well populated tonnage list, with 80,000mt Ceyhan/Med now rated in the low-WS140s.
In the North Sea, rates for 80,000mt ECUK/UKC lost 50 points, to settle at WS145, while 100,000mt Baltic/UKC got reduced by 40 points to WS120 region.
Across the Atlantic, rates have followed suit with 70,000mt Carib/USG falling 20 points to WS190 level and 70,000mt USG/Med dropping over 30 points to WS160 level.
Last week's gains were wiped out by this week's losses. 75,000mt Middle East/Japan cliff-dived from nearly W300 to WS180-182.5 level.
The LR1s followed suit, shedding over 65 points to sit around the WS165 region.
In the 37,000 Continent/USAC market rates were scaled back about 5-10 points to sit around low-to-mid WS150s whereas the backhaul 38,000 USG/UKC fell back about 20 points to the low WS100s.
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