The Baltic Exchange, the world’s independent source of maritime market data, has issued its reports for the last week, 23-27 November 2020, 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.
- Rates climbed slightly.
- However, with the bunker prices rising about $25/mt, the net result is lower earnings for owners and a deepening of the chasm between income and expenditure.
- Rates for 135,000mt Black Sea/Med are flat at WS52.5.
- In the 130,000mt Nigeria to UKContinent market, owners were able to recover three points to WS39.
- In the Middle East market, rates slipped another one to two points to WS18-19 region for 140,000mt Basrah/Med.
- In the 80,000mt Ceyhan/Lavera market, owners have managed to regain some recent lost ground with rates having initially dipped to WS57.5 and now seemingly settled at WS60.
- In Northern Europe, rates for 80,000mt cross-North Sea gained about 3.5 points week-on-week to WS77.5-80 level.
- In the Middle East Gulf/Japan trade, charterers held the upper hand and were able to squeeze down rates from low WS80s to mid WS70s.
- Similarly, in the LR1 trade, rates for 55,000mt to Japan drifted down three points to settle now at around WS77.5.
- The MR market saw decent activity with rates for 35,000mt AG/East Africa peaking at WS145 before easing back to mid WS130s.
- The Capesize market this week continued its recent range bound sideways drift hitting a low of $11,996 Tuesday on the 5TC, before closing the week out at $12,712.
- While the Pacific had more of a muted week, the Atlantic basin stepped up its activity with numerous fixtures being heard out of Brazil and, to a lesser extent, the North Atlantic.
- Meanwhile, Brazil to China voyage rates were seen strengthened, gaining 39 cents to settle the week at $13.815.
- Whilst the North Atlantic – particularly the Baltic region – continued to squeeze rates up in the Atlantic, it was the Pacific leading the way with significant gains made on all trade routes.
- Asia in recent weeks has been largely NoPac centric, but the rest of the region appeared to come alive this week.
- In the Atlantic, rates from the US Gulf to Far East proved to be mostly flatline.
- The Baltic was where the action was, mostly with varying rates between $15,000 and $16,000 regularly concluded throughout the week.
- An encouraging week for the sector, with both basins gaining momentum and rates improving for owners. The BSI closed 88 points up from the previous weeks close with the 10tc average $11,198.
- Despite this, period activity remained limited. A 63,000-dwt open south east Asia fixing three to five months at $10,700.
- The Atlantic again saw stronger demand from key areas.
- The market delivered strong performance from both basins, with the time charter average climbing to the highest point of the year.
- East coast South America, Continent and the US Gulf all moved sharply higher throughout the week, with the Pacific joining the surge mid week.