The Baltic Exchange, the world’s independent source of maritime market data, has issued its reports for the last week, 15-19 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
- Another stagnant week in this market with Worldscale fixing rates improving by less than a point. In the Middle East region, 280,000mt to US Gulf via the Cape/Cape routing continues to be assessed at around WS18.5 level and rates for China are hovering around WS32.5/33 on the back of another week of minimal fixing.
- In the Atlantic, 260,000mt West Africa to China was rated half a point up from last week at a fraction above WS35.
- Meanwhile, a 270,000mt from US Gulf to China saw rates gain about $90k to $4.34m although overnight we have seen Exxon reported to have taken on subjects the Hercules I (2017 built & recently scrubber fitted) at $4.5m.
-Suezmax
- Black Sea/Med rates have improved 3.5 points to WS73/74 level, most likely on the back of a firming med Aframax market, while rates for 130,000mt Nigeria/UK-Continent showed a similar gain to around WS56/57.
- Basrah/Mediterranean remains at about WS18-19 basis 140,000mt.
-Aframax
- This week’s boom sector in the West, due not least in part to poor weather.
- The Mediterranean market has been rampaging this week with 80,000mt Ceyhan/Lavera up 45 points to WS120 (basis a round voyage, about $16,800/day TCE).
- Rates in Northern Europe also firmed, albeit not by as much as the Mediterranean, with 80,000mt cross-North Sea leaping 15 points to WS97.5 level and 100,000mt Baltic/UK-Continent up 11 points to WS86/87.
- Across the Atlantic, rates have also significantly risen. Both the 70,000mt Caribbean/US Gulf and the 70,000mt US Gulf/UK Continent are now rated at WS109/110 level – rises of 19 and 32 points respectively.
-Clean
- It has been another uneventful week for LR tonnage, where Middle East Gulf/Japan remained relatively static in the low WS60’s.
- But by week end it was closer to WS65, whilst LR1’s rates were in the WS80/82.5 region.
- The weakness in the US Gulf was evident in rates for Brazil which eased around four points to barely WS105 level.
- It was another positive week for handy Owners. Trading cross-Mediterranean, where rates gained 50 points to around WS210 region after peaking at WS 215 for East Med loading, and WS235 was said to have been paid loading from Black Sea.
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Bulk carriers
-Capesize
- As one of the more wild weeks in the first quarter for the Capesize comes to an end, the market feels more like it’s in reprieve mood contemplating what comes next.
- From last Friday at $10,304, the Capesize 5TC reached a high on Wednesday of $15,856 before retreating to close the week out at $14,224.
- Throughout the week, the paper market was heard to be very active and while the Cape market charged, it was definitely not alone as smaller bulk carrier sizes were treading a similar route.
- While the Capesize market has closed down a little for the end of the week, calm seas are unlikely with so much whipsawing in recent days combined with returning Chinese New Year traders.
-Panamax
- It was the most vigorous week since 82,000-dwt became the new Panamax benchmark vessel in January 2020, with activity on physical and derivatives.
- North Atlantic remained fairly firm with both P1A and P2A making significant rises in the first half of the week on the back of demand for Baltic cargoes and breaching INL.
- Shorter coal trips via Indonesia were paying a premium over the demand from east coast South America.
- However, in the second half of the week, charterers also took a little pause after the gap was widened between their ideas versus owners.
-Ultramax/Supramax
- Like the larger sizes, it was a very positive week with a shortage of prompt tonnage and strong sentiment. This lead to the BSI gaining 296 points by week close.
- Period rates strengthened, a 63,000-dwt open Indian ocean fixing in the low $20,000s for six to eight months.
- Despite the Chinese holiday, rates saw healthy jumps from Asia.
-Handysize
- Similar to all other sizes, the question at the end of the week is what next or how far can this dramatic rise go?
- Compared with the same period last year, when the BHSI was published below 300 points and the time charter average was tick over $5,000, both are almost three times in value now.
- The surge started from east coast South America and the US Gulf, soon followed by the Continent and then Pacific later in the week.
