Baltic Exchange: Maritime market highlights 17-21 May

Bulk carriers

-Capesize

• The Capesize market managed to turn its fortunes around this week stemming the slide from the previous week. Opening the week at $34,542 the 5TC weakened until midweek before posting a solid 959 gain to settle at $32,593. This revival is largely Pacific led with a small assist from the ballaster routes.
• The North Atlantic remains weak and largely not dropping further due to an already stretched tether to the Pacific Basin.
• The Transatlantic C8 at $29,790 is currently at a difference of $10,456 to the Transpacific C10 at $40,246.

-Panamax

• An 82,000-dwt delivery Singapore agreeing $29,500 via EC South America for trip Far east. In Asia, sturdy demand led to firmer rates from Indonesia assisted midweek with renewed support from ECSA.
• Elsewhere NoPac proved to be lacking whilst Australia appeared flat all week, with an 81,000-dwt delivery Japan achieving $26,850 for a trip via EC Australia redelivery Japan.
• The FFA market hopped around all week, and period activity was thin overall. However, reports surfaced of an 82,000-dwt fixing $25,000 for 12 months.

-Ultramax/Supramax

• The BSI saw a week-on-week jump of 111 points, closing at 2,408. Period activity saw a 63,000-dwt open China fixing for five to seven months at a healthy $32,000.
• In the Atlantic, better numbers from the US Gulf saw a 58,000-dwt fixing a trip to China at $30,000.  Elsewhere, a 55,000-dwt open Continent fixing a scrap run to the eastern Mediterranean at $26,000.
• In Asia, trips back to the Atlantic saw demand with Ultramax sizes seeing in excess of $30,000 to Mediterranean. Otherwise a 58,000-dwt open Taiwan was fixed for a nickel ore run via Philippines redelivery China at $32,000.
• From the Indian Ocean, a 60,000-dwt open Arabian Gulf was fixed for a trip to Bangladesh $40,000.

-Handysize

• A 34,000-dwt open in the Sea of Marmara fixed four to six months with redelivery Atlantic at $19,500. In Asia a 34,000-dwt was fixed for four to six months with redelivery worldwide at $27,000.
• A 36,000-dwt Logs fitted vessel open in Vanino was fixed for about two to four months at $32,500. East Coast South America has seen more activity this week, a 36,000-dwt open in San Lorenzo fixed a trip to Peru at $34,250.
• In Asia a 32,000-dwt open in China fixed basis delivery DOP to the US West Coast at $27,000. In the Arabian Gulf a 37,000-dwt fixed a trip to East Coast India with fertilisers at $40,000.

Tankers

-VLCC

• In the Middle East the market for 280,000mt to US Gulf (routing via the Cape/Cape) is assessed slightly firmer at WS19-19.5 level, up almost a point from last week.
• Rates for 270,000mt to China are two points firmer at WS34.5 (showing a round-trip TCE of $1700/day) and overnight reports show a couple of ships on subjects to Malaysian and Chinese charterers at WS35 and WS36 respectively.
• In the Atlantic, rates for 260,000mt West Africa to China firmed by less than a point to just below WS36 (a round trip TCE of $4.4k/day) and 270,000mt from US Gulf to China saw rates recover about $40k to just over the $4.33m mark (about $7k/day TCE round-trip).

-Suezmax

• In the 135,000mt Black Sea/Med market rates remain pegged at WS58 (a round-trip TCE of about minus $4k/day), while in the 130,000mt Nigeria/UK Continent market rates have eased another two points to WS49 level (a round trip TCE of $400/day).
• The market for 140,000mt Basrah/Med remains flat at WS17-17.5 region.

-Aframax

• In the Mediterranean, the market has improved slightly with rates for 80,000mt Ceyhan/Lavera gaining two points to WS87 (a TCE of about $3k/day basis a round voyage).
• In Northern Europe rates have slipped, with the market for 80,000mt Cross-North Sea easing four points to WS91 level (about minus $4k/day TCE round trip) while rates for 100,000mt Baltic/UK Continent are down six points to WS67.5 region (a round trip TCE of about $1.8k/day).

-Clean

• The market for 38,000mts from US Gulf to UKC now sits at WS77.5/80 region, representing a drop over the week of 25 points. It’s a similar story for cargoes to Brazil where rates are down around 32.5 points at WS112.5 level.
• By contrast the MR market from Continent/USAC has been relatively steady with rates easing around 2.25 points to WS135 level. The 37,000mts trade from Continent to West Africa has largely followed suit, down around 3 points in the mid WS140s.
• In the Middle East Gulf, LR2 owners have enjoyed a better week with rates for 75,000mts to Japan gaining 7.5 points to WS91.25.