Baltic Exchange: Maritime market highlights 12-16 Jul

Bulk carriers

-Capesize

• The Capesize market endured a week of eroding value across all regions as the 5TC lowered $2,430 week on week to settle at $28,572.
• While the Pacific’s West Australia to Qingdao C5 route closed out Friday up 25 cents to $10.841, appetite from major charterers in the spot market on this route have appeared tepid of late.
• Activity to the east of Australia for coal cargoes to Northern Asia remains strong while those coal cargoes destined for Europe, admittedly not so frequent, have been required to pay up for the longer duration backhaul route.

-Panamax

• A week of declines for the Panamax market in all basins as the gains seen in recent weeks began to erode. In the Atlantic Basin there were one or two bright spots namely the grains run ex-North France to China and Black Sea demand that ultimately never wavered.
• However, tonnage and ballaster build-up negatively impacted rates overall with several APS load port fixtures reported, an 81,500-dwt agreeing $40,000+$465,000 delivery APS US East coast for a trip back to Skaw-Gibraltar.

-Ultramax/Supramax

• A lackluster week with limited fresh inquiry and lengthening tonnage lists in many areas. Limited period activity was recorded with both sides watching for any clear direction, but a 63,000-dwt open China was fixed for four to six months trading at $36,000.
• Despite rates remaining relatively firm from the east Mediterranean generally other areas saw slightly lowering rates.
• A 55,000-dwt was reported fixed delivery Gibraltar via west Mediterranean redelivery west Africa at $39,000.

-Handysize

• A week of mainly positive moves with the indices moving up a further 18 points to a new yearly high of 1669 points, this despite a general lack of activity in East, and East Coast South America seeing levels soften whilst the market awaits the batch of requirements.
• The US Gulf has been more active with a 36,000-dwt fixing a petcoke cargo to the Western Mediterranean at $30,000.
• The Asia markets were quiet this week with brokers talking of a growing tonnage list as the week progressed, though a re-emerging logs market did offer some support.
• The Indian Ocean also remained firm with a 29,000-dwt fixing basis delivery Chittagong via East Coast India with redelivery southeast Asia at $30,000.

Tankers

-VLCC

• In the Middle East, the market for 280,000mt to US Gulf (routing via the Cape/Cape) continues to be assessed around the WS18-18.5 mark while rates for 270,000mt to China have remained flat at WS31.5 (showing a round-trip TCE of minus $5.6k/day).
• In the Atlantic, rates for 260,000mt West Africa to China improved by almost two points to WS34.5-35 level (a TCE of minus $1.1k/day round trip) and 270,000mt US Gulf to China is still being rated at $3.95m (a roundtrip TCE of about minus $670/day).

-Suezmax

• In the 130,000mt Nigeria/UK Continent market rates have gained 2.5 points to WS52 (a round-trip TCE of about minus $1.1k/day).
• Meanwhile in the Mediterranean rates for 135,000mt Black Sea/Med remain pegged at WS60 (a round-trip TCE of minus $7k/day).
• The market for 140,000mt Basrah/Med took a 3.5 point hit this week and now sits at just shy of WS25.

-Aframax

• In the Mediterranean, the market softened with rates for 80,000mt Ceyhan/Lavera losing 4.5 points to WS88 (showing a round-trip TCE of $1.3k/day).
• In Northern Europe, the market remained relatively flat with the rate for 80,000mt Cross-North Sea maintaining WS93 (a round trip TCE of minus $5.5k/day).
• A similar sentiment was seen in the 100,000mt Baltic/UK Continent market with rates unmoved at WS60 (a round trip TCE of minus $1.3k/day).
• Across the Atlantic, the market has improved a little, mostly due to a tightening of tonnage positions in the short term for voyages from East Coast Mexico.

-Clean

• The clean market continues to lack direction this week though there were some positive moves in the East and as a result the BCTI rose from 445 points to 464 by publication.
• The Middle East was slightly positive with LR2s to Japan (TC1) rising by over 13 WS points to 88.33, a TCE of $3,868.  There have been a number of LR2 fixtures this week at improving numbers from WS80 to NAVIG8 PROVIDENCE (110 kdwt / 2018) placed on subjects for AG/Japan at WS90.
• The LR1s from MEG to Japan gaining 11 points to WS90 and a TCE of $2,233, and MEG to UK-Cont largely flat at $/t 20.63.