The Baltic Exchange, the world’s independent source of maritime market data, has issued its reports for the last week, 1-5 February 2021, to provide information of the tanker and bulk market performance. The information is used by shipbrokers, owners & operators, traders, financiers and charterers as a reliable and independent view of the dry and tanker markets.
Tankers
-VLCC
- The VLCC market remains in the doldrums with little joy or optimism for owners on the income front.
- In the Middle East region, rates for 280,000mt to USG via the Cape/Cape routing were unchanged again at the WS18/18.5 mark, while rates for 270,000mt to China slipped half a point from last Friday’s level to just below WS31 (a TCE of about $1,500/day).
- In the Atlantic region, the market for 260,000mt West Africa to China eased a single point to WS34 ($3,600/day TCE) and 270,000mt US Gulf to China fell about $40,000 from a week ago to around $4.24m level.
-Suezmax
- Rates for 135,000mt Black Sea/Med market fell WS4 points to between WS67.5/70 level (about $5,000/day TCE), while the 130,000mt Nigeria/UK Continent market lost over 15 points to low WS50s (about $4,000/day TCE).
- There was no change in rates for 140,000mt Basrah/Med, which remained in the low WS20s region.
-Aframax
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- Ceyhan/Lavera has remained unchanged this week at WS77.5 basis 80,000mt and in Northern Europe rates for same size cross-North Sea remain at WS77.5 (a TCE of -$6,700/day).
- In the 100,000mt Baltic/UK-Continent market, rates eased a couple of points to between WS55/57.5 level.
- On the other side of the Atlantic, having shed over 10 points early in the week to below WS70, the market has picked up a little and is now assessed in the low WS70s, down nine points week-on-week.
-Clean
- Charterers have managed to squeeze rates down a further 2.5 points in the Middle East Gulf/Japan market for LR2s to sit now at WS67.5.
- In contrast, the LR1s have made a very modest gain nudging up a similar amount WS77.5 for 55,000mt. This is partly on the back of higher bunker costs but also uncertain itineraries on tonnage.
- For MR tonnage on AG/East Africa, it has been one-way traffic with the market sliding 11 points to WS120 region.
- For MR owners trading Continent/USAC it has been a disappointing week due to ballasters from the USA.
- As such, the market has dropped almost 10 points to mid WS120s with the expectation of further downward pressure.
Bulk carriers
-Capesize
- The market began to meet increased resistance to the recent slide in rates as the week progressed. With talk of a floor being found to provide some stability, it was heard that forward markets reacted positively.
- The north Atlantic basin was the big mover this past week with the Transatlantic C8 falling $6,645 week-on-week to settle at $16,605.
- The Pacific, in contrast, still remains at a heavy discount with the Transpacific C10 closing the week at $7,788.
-Panamax
- The week commenced largely passively in places with little sign of a direction.
- The North Atlantic was resilient for the most part with sound demand from the Baltic, where breaching INL was required, and the North Americas were assisted by tight tonnage availabilities.
- From EC South America it was a muted start to the week.
- But activity picked up a little by Thursday with several rumours emerging, like an 82,000-dwt delivery SE Asia which achieved in the region of $14,500 and others faring better in some cases.
- The rates in Asia slowly eroded as the week went on with little activity.
-Ultramax/Supramax
- A mixed bag over the last week, with the Atlantic remaining relatively firm whereas the Asian market saw a drop in activity levels and rates with the upcoming Chinese New Year celebrations on people’s minds.
- Period activity remained, an Ultramax open China was fixed for a year at $12,500 and for a short period a 56,000-dwt open Indian Ocean fixed four to six months in the mid $14,000s.
- As the week closed certain areas in the Atlantic saw a tightening of fresh tonnage.
-Handysize
- Despite having a slower start than usual, both the BHSI and time charter average climbed further throughout the week.
- Market participants considered the Skaw-Passero range slightly quiet, but also saw more mid-end February cargoes coming out. A 39,000-dwt open Casablanca was fixed for a trip via France to west Africa at $19,000.
- The US Gulf was reportedly having a surge since mid-week, with high rates fixed for trips to west coast Central America.
- In the east, brokers suggested vessels with prompt dates were limited, but there were still cargoes to be covered before Chinese New Year.
