The Baltic Exchange has issued its reports for last week, 12-17 July 2020, to provide information of the bulk and dry 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.
Bulk – Capesize
- The capesize market showed some resistance this week to recent losses as all routes saw a small uptick in value to end the week. A backwardated forward curve illustrating a capesize 5TC spot level from today of $25,085, down to Q4 at $17-18k, gives an indication of market confidence.
- The Atlantic basin has widened its premium over the Pacific to a difference of +$9532. The West Australia to Qingdao C5 shed more than 80 cents to settle end of week at $8.132. The Brazil to China C3 encountered similar pressure dropping 79 cents to post at $18.295.
Bulk – Panamax
- In the Atlantic, with reduced activity out of EC South America and longer duration trans-Atlantic business lacking, the short Baltic and Kamsar round trips appeared popular with some to take cover.
- Rates for Baltic rounds at the beginning of the week marked at $20,000 pegged back closer to $16/15,000 by end week. Despite less salvation from EC South America and weaker FFA values, there was less of a decline in rates out of Asia.
Bulk – Supramax/Ultramax
- Period activity was limited, but a 62,000-dwt newbuilding scrubber fitted was fixed for five to eight months trading at $13,000. From the Atlantic, a 62,000-dwt was fixed delivery Recalada for a trans Atlantic in the mid $17,000s.
- Further north, a 61,000-dwt was reported fixed from the US Gulf for a petcoke run via India redelivery Durban at $20,000. The Continent was patchy, but a 61,000-dwt fixed a scrap run to the east Mediterranean at around $16,000.
Bulk – Handysize
- Mediterranean the HS3 route from east coast South America climbed over $12,000 this week and is now at the highest point of the year.
- A 37,000-dwt delivery US east coast was fixed for moving petcoke to east coast Mexico at $12,500 and a 38,000-dwt did a similar run at $15,000 basis Southwest Pass delivery.
- A 37,000-dwt was booked for moving steels via the Black Sea to Egyptian Mediterranean at $7,250 basis Canakkale delivery.
Tanker – VLCC
- Rates in this sector fell back slightly, with 280,000mt Middle East Gulf to USG via the Cape/Cape routing assessed one to two points lower at WS24 and 270,000mt to China now sits at WS42.5 level, down four points.
- Nevertheless, ENI are today reported to have fixed on subjects at WS43.75. Voyages of 270,000mt US Gulf to China are now rated at $5.95m region – $700k lower than a week ago.
Tanker – Suezmax
- Rates for 135,000mt Black Sea/Med have dipped to low WS50s, losing the 2.5-point gain from last week. The 130,000mt West Africa/UKCont market is also weaker and now sits at WS45, down six points.
- For the 140,000mt Middle East Gulf to Med trip, rates have modestly improved by a single point to WS22.
Tanker – Aframax
- Improvements were seen in Northern European voyages where rates for 80,000mt Hound Point/UKCont saw an uptick of 21 points to WS92.5-95 region.
- Across the Atlantic, the market has remained flat at WS 68.75 for 70,000mt Carib/USGulf and WS67.5 for 70,000mt USGulf/UKCont.
Tanker – Clean
- In the Middle East Gulf, rates for 75,000mt to Japan have been under relentless pressure.
- The 37,000mt UKC to USAC trade started the week at WS70 and a flurry of activity with a tighter list saw an improvement to low WS80s before the brief recovery was snuffed out and rates settled back to high WS70s.
- The one bright area for owners was again in the backhaul business from the US Gulf where the market gained almost 35 points to WS125 level.
The full reports are available on Baltic Exchange’s website, under related category. Namely, the Baltic Exchange information is based on assessments made by a global panel of shipbrokers, covering voyage and timecharter rates for capesize, panamax, supramax and handysize bulk carriers; VLCC, aframax & MR tankers, LPG and LNG vessels as well as forward assessments, vessel values, market reports & fixtures and demolition values.
See also
- Baltic Exchange: Maritime market highlights 6-10 July
- Baltic Exchange: Maritime market highlights 29 June-3 July
