Baltic Exchange: Maritime market highlights 10-14 May

Bulk carriers

-Capesize

• As the week progressed it became clear that the Capesize market wasn’t having a small retracement but was in for a more significant downturn as the 5TC dropped $6,972 week-on-week to settle at $34,542.
• While Friday’s sharp selloff in the Pacific on the back of West Australia to China C5 fixtures gave clear market visibility, the remainder of the market was operating on low physical activity as dark clouds from the paper market ensured sentiment was poor across the board.
• The C5 had a small lift on Monday but lowered -2.254 week-on-week to post at $12.173 by Friday. Out from Brazil to China, the C3 followed a similar early uptick to begin the week but quickly started to decline as charterers’ bids melted away with the declining forward curve to settle the week at $26.89.

-Panamax

• The Atlantic was predominantly fronthaul led with a steady cargo flow ex NC South America with an 82,000-dwt achieving $26,000+$1.7 million ballast bonus delivery US Gulf.
• However, with an easier looking trans-Atlantic market the nearby Med positions came under pressure with reduced rates appearing.
• In Asia, exports from Indonesia continued to thrive with healthy volumes throughout the week, $32,000 agreed on an 82,000-dwt delivery mid China. But Singapore holiday on Thursday curtailed trading somewhat with rates eroding to closer to $30,000 and under for such a trip.
• Period activity included an 81,000-dwt delivery mid China position concluding at close to $24,000 for one year’s period with sustained support for the rest of this year into next.

-Ultramax/Supramax

• On the period front, a 63,000-dwt open Japan was fixed for six to eight months at $28,000 and a 51,000-dwt open Mediterranean was heard fixed for four to six months Atlantic trading at $23,000.
• From the Atlantic a 55,000-dwt was fixed at $19,750 from the US Gulf to central Mediterranean. Further south a 58,000-dwt fixed delivery Recalada for a trans-Atlantic run at $30,250.
• From Asia, with the strong sentiment a 54,000-dwt was fixed for a trip delivery China via South Korea to Continent-Mediterranean at $26,000.

-Handysize

• A 37,000-dwt open in Rio De Janeiro 15 May fixed minimum four months to about six months redelivery Atlantic at $19,500. A 34,000-dwt open in CJK was rumoured to have fixed two to three laden legs at $29,000.
• In East Coast South America, numbers have been firming with a 36,000-dwt rumoured to have fixed a trip from Recalada to the US Gulf – US East Coast Range at $27,000.
• A 35,000-dwt was rumoured to have fixed a trip from US Gulf to the Western Mediterranean with Agriprods at $17,500.
• In Asia a 38,000-dwt open in Japan was fixed for a trip via North Pacific Canada/USA back to Japan at $28,000. A 28,000-dwt open in Singapore was fixed for a trip via Australia to Indonesia at $28,000.

Tankers

-VLCC

• In the Middle East, the market for 280,000mt Middle East to US Gulf (routing via the Cape/Cape) continues to be assessed at WS18.5 level while rates for 270,000mt to China have similarly been stuck at WS32.5 (showing a round-trip TCE of minus $1400/day).
• In the Atlantic, rates for 260,000mt West Africa to China also remained pegged at WS35 (a round trip TCE of $2.3k/day) and 270,000mt from US Gulf to China saw rates dip about $30k to just under the $4.3m mark ($5.5k/day TCE round-trip).

-Suezmax

• In the 135,000mt Black Sea/Med market rates were last assessed about 1.5 points down on a week ago, at WS58 (a round-trip TCE of minus $4.7k/day) with reports this morning of a fixture at WS60.
• In the 130,000mt Nigeria/UK Continent market, rates have eased three points to WS51 (a round trip TCE of $450/day). The market for 140,000mt Basrah/Med remains flat at WS17.

-Aframax

• In the Mediterranean, the market has again slipped slightly with rates for 80,000mt Ceyhan/Lavera down two points at WS85 (a TCE of about $1.7k/day basis a round voyage).
• In Northern Europe, owners have fared a little better with the market for 80,000mt Cross-North Sea improving by seven points to WS95 (about $500/day TCE round trip) while rates for 100,000mt Baltic/UK Continent are back to WS75 (a round trip TCE of $5.3k/day) – up 10 points week-on-week.
• On the other side of the Atlantic the market has peaked for now and is gradually coming down with rates for 70,000mt Caribbean/US Gulf losing five points to WS102 (a TCE of about $5.6k/day round trip).
• For 70,000mt US Gulf/UK Continent rates lost four points week-on-week to WS 77.5/78 level (a round trip TCE of $1.5k/day, which obviously would improve considerably basis one way economics).

-Clean

• With the pipeline seemingly operating again, rates have tailed off significantly with the market now assessed in the low WS120s trans-Atlantic, with Brazil discharge now evaluated in the low WS160s after peaking in the mid WS190s, which was agreed by Petrobras earlier in the week.
• Brokers also feel there is potential for further falls here. It was somewhat less eventful in the 75,000mt Middle East Gulf/Japan trade with rates largely unchanged in the mid WS70s.
• The LR1 market was also steady and rates have drifted down 2.5 points over the week to WS92.5. In the MR market, the 35,000mt clean into East Africa was being fixed early in the week at around WS172.5 before easing back to mid to high WS160s here.