Baltic Exchange: Maritime market highlights 20-24 Sept

Bulk carriers

-Capesize

• The Capesize market continued its assertive rally this past week reaching new highs in dramatic fashion. The Capesize 5TC opened the week at $53,240 and never looked like taking a backward step as it closed out the week a staggering $8,069 up settling Friday at $61,309.
• The main driving force for the market came from the Pacific, as West Australian charterers were caught early on in the week dealing with a slim selection of choices and troubled vessel schedules resulting from the previous week’s weather in eastern China.
• The West Australia to China C5 leapt up $3,759 at the beginning of the week to $20,145 before regressing on Friday to $19,082.

-Panamax

• East coast South America saw good support for second half October arrivals, with talk of an 81,000-dwt accomplishing $36,500 for a trip via east coast South America with delivery in Singapore.
• Asia, despite holidays, witnessed steady gains. NoPac grain demand returned as the main driver in the north, with a $35,500 agreed on an 81,000-dwt delivery Japan for a NoPac round trip the high on the week.
• Stronger levels too from both Indonesia and Australia to India on the coal trips, with $38,250 the high rate on an 82,000-dwt delivery Malaysia for a trip via Indonesia to India.
• Period activity saw an 81,000-dwt achieve $34,000 for four to six months.

-Ultramax/Supramax

• From the US Gulf an Ultramax was heard to have been fixed for a trip to the far east in the low $50,000s. Further south from east coast South America, limited activity was reported with some seeing tonnage supply growing.
• From Asia, a 63,000-dwt open Kosichang was fixed for an Indonesian coal run to China in the low $40,000s and Ultramax size also open Southeast Asia were seeing in the low $40,000s for Australian round voyages.
• From the Indian Ocean, a 63,000-dwt open Kandla was fixed for a trip to the Continent at $40,000.

-Handysize

• A week of positive gains on the BHSI, despite holidays in the Asia region causing activity to be limited, resulting in a new yearly high of 1925 points.
• East coast South America continues its revival, with a 37,000-dwt fixing a trip from Vila Do Conde to Norway with an intended cargo of alumina at $37,000, plus a 28,000-dwt fixing from Santos to Morocco with an intended cargo of sugar at $34,000.
• A 35,000-dwt was also fixed from Morocco to Bangladesh at $45,250. In the Mediterranean a 37,000-dwt was fixed for a trip from Turkey to the US Gulf with an intended cargo of steels at $41,000.

Tankers

-VLCC

• In the Middle East Gulf a 280,000-mt to US Gulf (via the Cape/Cape routing) is assessed just over a point higher at WS20 as 270,000-mt to China improved 3.5 points to WS39 (which shows a trip TCE of about $1,900 per day).
• In the Atlantic, rates for a 260,000-mt West Africa to China firmed by four points to between WS40-41 (a roundtrip TCE of $5,100 per day).
• A 270,000-mt US Gulf to China is now rated $756,000 higher than a week ago at $5.01 million (a TCE of $8,500 per day roundtrip) having seen reports of a 270,000-mt east coast Mexico to west coast India fixing on modern tonnage at $4.1 million, and North Sea to China fixing at $4.4 million on a 2006-built vessel.

-Suezmax

• In West Africa the rate for 130,000-mt Nigeria/UK Continent remains stuck at the WS52.5 mark (a round trip TCE of -$600 per day) while similarly the rate for 135,000-mt Black Sea/Med continues to be at WS60 (a TCE round trip of -$6,700 per day).
• The Middle East market had another busy week of fixing, with reports of Basrah/west voyages done by Turkish, Greek and a couple of other oil majors at WS25 early in the week.
• A French major oil company was reported to have fixed with east and west options from Basrah at WS27.5 for the Mediterranean.
• The Baltic Exchange route of 140,000-mt Basrah/Lavera is now assessed at around the WS26.5 level, up four points for the week.

-Aframax

• Across the Atlantic, rates for the 70,000-mt US Gulf/UK Continent were held at WS82.5/83 level (a TCE of $1000 per day round trip) while the market for the shorter local voyages tumbled 10 points as the position list of available tonnage became more populated.
• A 70,000-mt Caribbean/US Gulf rate is now in the WS94 region (a TCE of $1,400 per day round trip) while the rate for 70,000-mt East Coast Mexico/US Gulf is dipping just below WS100 (a round trip TCE of $4,100 per day).

-Clean

• The Middle East Gulf has seen freight rates generally sideways this week. On the LR2s to Japan TC1 has dropped 0.15points to WS107.71, a round-trip TCE of $9,624 per day.
• The LR1’s have seen activity subdued this week and TC5 55k Middle East Gulf / Japan has remained in the WS112.5 region.
• On the MRs, the 35k Middle East Gulf / East Africa (TC17) has risen WS6.67 points on the back of some end of week activity to WS189.17, a round-trip TCE of $10,534 per day.
• After returning to WS115 the Mediterranean Handy market has plateaued there for the TC6 30kt Skikda / Lavera run. The LR2’s have had continued momentum this week and have subsequently gone up a further $195,000 to $2 million for the TC15 80k Mediterranean / Japan voyage.