The Baltic Exchange, the world’s independent source of maritime market data, has issued its reports for the last week, 14-18 June 2021, to provide information about 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.
- The timecharter average was up to the highest of the bulker sectors in midweek, closing at $33,415. The booming C3 Brazil to China and C5 west Australia to China routes continued unabated in the first half of the week, driving the timecharter routes C14 and C10 up accordingly to new highs.
- A C5 fixture was reportedly done at $11.60 early of the week – followed by talks of $12.40 and $12.50 being paid – but slipped to the initial level when the week ended. Period activity included a 180,000-dwt 2012-built delivery in the Far East in August fixing for 12 to 18 months at $32,500.
- A scrubber-fitted 172,000-dwt 2007-built was fixed for one-year trade at $35,000 delivery Luoyu 22/27 June.
- In the Atlantic, the week begun with good levels seen for both mineral and grain transatlantic demand, which gave the necessary support to the rises seen in rates. Midweek saw an upsurge of activity out of EC South America for first half July arrival with a raft of fixtures.
- Asia started out in a sluggish manner, only to come to life midweek with a surge especially for Japanese coal tenders. With talk of a shortage of stocks in Japan, this led to a hike up in numbers, with an 81,000-dwt delivery Japan fixing at $33,000 for a trip via EC Australia redelivery Japan.
- Demand from Indonesia remained generally thin for most part however rates in the region continued to build all week on the back of sentiment and Atlantic demand.
- It has been a busy week in all areas with the US Gulf returning very strong fixtures, an Ultramax has been fixed from Mobile via US Gulf to Japan at $47,500.
- It was reported that Marubeni fixed out an Ultramax for two years at region $21,000 delivery Chittagong and for short period an Ultramax fixed at $31,000, including Nickel Ore. There have been reports of some fixing and failing as the week draws to a close – particularly in Asia – and brokers felt charterers were taking a break at the end of the week.
- Nevertheless, the general sentiment heard from brokers is that the strong rates are here to stay, at least in the short term.
- In the US Gulf a 38,000-dwt open in the Mississippi fixed for a cargo of grains to the Mediterranean at $22,500. The Indian Ocean and Arabian Gulf regions have also been active with a 38,000-dwt being rumoured to have been fixed for a trip to East Coast South America at $33,500.
- In Asia, a 34,000-dwt open in North China was fixed via South Korea to the Philippines at $19,250. Period has been active with a 38,000-dwt open in the US Gulf fixing for a minimum of 12 months with worldwide redelivery at about $20.000 and a 32,000-dwt in the Western Mediterranean fixed for four to six months with Atlantic Redelivery at $22,000.
- In the Middle East the market for 280,000mt to US Gulf (routing via the Cape/Cape) continues to be assessed around the WS18 mark while rates for 270,000mt to China have remained steady at just above WS31 (a round-trip TCE of minus $4.5k/day).
- In the Atlantic, rates for 260,000mt West Africa to China remained flat at WS32.5 (minus $2.1k/day TCE) and 270,000mt US Gulf to China has stuck at around the $4.035k level (a TCE of about $1.3k/day).
- In the 130,000mt Nigeria/UK Continent market rates have improved by two points to the WS49.5 level (a round-trip TCE of about minus $1.3k/day), with Spanish charterers taking a TMS Tankers vessel at WS50 for a voyage Nigeria/Spain.
- This slight firming has had a knock-on effect in the 135,000mt Black Sea/Med market where rates have moved up a point to WS58.5-59 level (a round-trip TCE of about minus $5.4k/day, although reported fixtures here have been scarce.
- The market for 140,000mt Basrah/Med has gained seven points to WS29.5 after ENI went on subs at WS30.
- Across the Atlantic the market has continued along the latest floor as rates for 70,000mt Caribbean/US Gulf and East Coast Mexico/US Gulf have remained steady around the WS80 mark again (a TCE of about minus $2.6k/day and minus $2kpd round trip respectively).
- The 70,000mt US Gulf/UK Continent market remains between WS70 and WS72.5 (which shows a TCE of about minus $1.3k basis a roundtrip, turning positive basis single trip economics).
- n the Middle East Gulf it has been an uneventful week on both LR2s and LR1s with the rates static. The market for 75,000mt to Japan has settled in the mid WS70s, while on the 55,000mt size, rates have likewise been flat at just below WS90.
- The MRs have remained under downward pressure and rates for 35,000mt in to East Africa have drifted down from mid WS150s at the start of the week to WS150, with the market even assessed now at just below this level.
- For owners trading MRs from the Continent it has been a lacklustre week, with rates for 37,000mt to USAC largely unchanged at around WS110 region.