Baltic Exchange: Maritime market highlights 18-23 Oct

The Baltic Exchange, the world’s independent source of maritime market data, has issued its reports for the last week, 18-23 October 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.

Tankers – VLCC

• Rates were flat this week on most of the routes in this sector.
• 270,000mt to China remains steadfast at around WS29 level.
• In the Atlantic, rates for 260,000mt West Africa to China remain unchanged at WS30, while 270,000mt USG to China rates dipped $150k to be assessed at a shade above $4.6m, having seen a fixture fall through from Bahamas to Ningbo at $4.65m.

Tankers – Suezmax

• Rates for 135,000mt Black Sea/Med recovered two points to WS44 and 130,000mt Nigeria/UKContinent remains around the WS30 mark.
• In the Middle East market, rates for 140,000mt Basrah/Med are up a point or two to WS14, although overnight we heard Tupras fixing the Frio at WS20 for a voyage Basrah/Turkey.

Tankers – Aframax

• In Northern Europe rates remained flat with 80,000mt Cross-North Sea WS72.5-75 region and 100,000mt Baltic/UKC at WS44.
• Across the Atlantic, for the third week sentiment remained weak and rates for 70,000mt Carib/USGulf remain pegged at WS45, while 70,000mt USG/UKC saw continued fixing activity firming rates by 2.5 points to around WS45.

Tankers – Clean

• For owners plying the 37,000mt UKC/USAC trade, it has been another difficult week with rates unable to gain any traction and the market still sits at around WS75.
• The clean market cross Med was unchanged at WS70.

Bulk carriers – Capesize

• By Friday, the market was overwhelmingly quiet as principles struggle to find common ground. The quick turn around is not yet a convincing rally as fixture activity fails to impress.
• Closing the week on a positive note will sit well for owners. However, follow through will be required next week to consolidate any gains.
• The alternative may be a return to the sideway drifting range bound territory seen in August – or possible further retreat.

Bulk – Panamax

• The Panamax market experienced something of a diverse week, with pockets of resistance appearing in places. But overall a flat to weaker tone beset the market culminating in the time-charter average starting out at $11,681 to close the week at $11,469.
• In the Atlantic, the US Gulf grain exports fared as the prominent market with a number of deals concluded on ballaster tonnage.
• In Asia, steady cargo flow from Indonesia and the NoPac during early part of the week helped to keep rates robust. However, demand enquiry seemed to diminish as the week drew to a close.

Bulk – Ultramax/Supramax

• The Black Sea meanwhile posted solid gains on increased grain, fertiliser and clinker volumes – the S1B route lifting $718 on the week, to reach $22,225.
• Brokers also said that the Continent, and Baltic remained positionally tight for those compelled to cover first half November cargoes.
• The period market meanwhile remained mute, although brokers pointed to the Aurora SB (2009 56,119), which was said to have fixed to Cargill for about four to six months at $8,750 basis delivery CJK – as a sign that belief in the market, was not universal.

Bulk – Handysize

• The Handysize market closely mirrored the larger supras this week, as the timecharter average lost an incremental $28 to close at $10,748. The HS4 US Gulf route proved to be weakest link, with the index shedding $1250 on the week as demand ebbed.
• Representative fixtures from the US East Coast, meanwhile, included the Buckaroo Bowl (38,233 2012), which was linked with Trithorn basis delivery Norfolk for a trip Egypt at $11,000, whilst the Puck (37,894 2012) was fixed by Norvic delivery Sparrows Point for a trip Tunisia at $11,500.

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.