Baltic Exchange: Maritime market highlights 15-19 Nov

Bulk carriers

Capesize

• The Capesize market closed out a generally underwhelming week with positive sentiment and an uptick in the final days with the 5TC lifting +2905 to settle at $29,938.
• Rates are down week on week and the routes appear to now be oscillating in a trading range. Fundamentals are said to have improved at the later end of the week, but whether they have enough impetus to break above the current upper range is uncertain.
• In the Atlantic region the Transatlantic C8 now resides at $33,500 to the Transpacific C10 at 31,562.

Panamax

• In the Atlantic, rates reduced nigh on $2000 on all routes with little sign of things altering as tonnage lists built and ballasters continued to undermine the market.
• An 82,000-dwt achieved a vastly reduced rate of $21,500 for a trans-Atlantic trip. With a lack of demand ex Australia – and ultimately EC South America – Kamsarmax’s open SE Asia felt the strain the most. Indonesian coal trips were seen to be massively discounted by the smaller and older units with offers now sub $10,000.
• With confidence and sentiment little period activity of note although a 79,000dwt delivery North China achieved close to 104% of BPI5TC index for one year.

Ultramax/Supramax

• The US Gulf was one area that showed positive signs until the tail end of the week and then the sentiment fell away. And, with a lack of cargoes, the only area of strength looked to be weakening. The larger sizes appear more undervalued in comparison, further eroding the optimism that was briefly felt in the south Atlantic.
• In the Pacific, despite a wide spread between positions, vessels were being fixed at close to last done. However, it would appear both owners and charterers have looked to a quiet weekend and see what transpires next week. It remains to be seen where the market will head next week. But it was felt Owners might have to wait for any significant improvement in rates.

Handysize

• A 37,000-dwt open in South Korea was fixed for a trip via CIS with redelivery in South Korea – China Range at $17,000. A 38,000-dwt open in Thailand was fixed for a trip to Japan with an intended cargo of gypsum in the high $19,000’s.
• A 38,000-dwt open in CJK was fixed for a trip via Australia back to China at $18,000. The US Gulf continued to soften with a 38,000-dwt fixing a trip from the Mississippi River to the Caribbean with Agri prods at $32,000 and a 36,000-dwt fixing from Belledune to the UK-Continent with wood pellets at $29,000.
• On the Continent a 40,000-dwt was fixed from the UK via the Continent to the US Gulf at $38,000. A 38,000-dwt open in Casablanca was fixed for a trip via the Continent to the Caribbean at $32,000.

Tankers

VLCC

• Rates have slipped slightly again this week in the Middle East Gulf and Atlantic regions. For the 280,000mt Middle East Gulf to US Gulf (Cape/Cape routing) trip rates are assessed as static at just below WS22.
• Meanwhile, the rate for 270,000mt Middle East Gulf to China fell another point to WS42.5 (a roundtrip TCE of $1.9k/day).
• In the Atlantic, rates for 260,000mt West Africa to China eased half a point to between 44/44.5 level (a TCE of $5k/day roundtrip) and 270,000mt US Gulf to China recovered $31,250 to $5.45625m (a TCE of $9k per day roundtrip).

Suezmax

• In West Africa, the market eased again with the rate for 130,000mt Nigeria/UK Continent down five points from a week ago at WS63.5 level (showing a roundtrip TCE of about $3.4k/day).
• However, the latest reports have ST taking a Stena vessel at WS62.5 for the Europe option. The market for 135,000mt Black Sea/Med has fallen six points to WS75 (a TCE roundtrip of about $1.9k per day).
• The market for 140,000mt Basrah/Lavera has again been quiet and rates are assessed three points weaker at WS32.

Aframax

• In the Mediterranean, the market for 80,000mt Ceyhan/Lavera has fallen 10 points to WS117 ($13k per day TCE roundtrip). In Northern Europe the market for 80,000mt Cross-North Sea has tumbled 12 points to just below WS110 (a TCE of about $3.7k/day).
• The rate for 100,000mt Baltic/UK Continent has shed 7.5 points, currently sitting at WS92.5 (a TCE of about $12.4k per day roundtrip).
• On the other side of the Atlantic, the market has fallen again with the 70,000mt Caribbean/US Gulf rate down seven points to between WS117.5-120 (a TCE of $8k/day roundtrip).

Clean

• The Middle East Gulf appears to have been in limbo this week. On the LR2s TC1 topped out at WS122.5 midweek then resettled out at WS 120.71 – a round-trip TCE of $11,308/day.
• The LR1s, despite cargo / tonnage balance, have gradually traded off and TC5 55k Middle East Gulf / Japan is down 6.36 points to WS111.43 – a round-trip TCE of $7855/day.
• The MRs have been under pressure all week and 35k Middle East Gulf / East Africa (TC17) is now WS173.75 (-WS 8.33).
• In the Mediterranean, the Handymax have suffered from insufficient enquiry to maintain freight levels from previous weeks.