Baltic Exchange: Maritime market highlights 27 Sept- 1 Oct

Bulk carriers

-Capesize

• The Capesize market was in a steep climb for most of this week as it reached a pinnacle of $74,786 Wednesday before stalling, regathering, and then pushing on to $75,190 at weeks end. These heights were last visited in November 2009.
• The market is currently looking very robust on several fronts with vessel tightness on numerous loading windows across the globe, while an energy crisis in several countries add complications. This combination may provide further signal for rallies to come.
• The Atlantic Basin showed less signs of abating as it hit a high to close the week at $84,750. The Fronthaul C9, a preference for many vessel owners now to close out Q4, was commanding a headline topping $105,650, rising +5950 on Friday alone.

-Panamax

• The Panamax market proved to be a mixed picture this week, with the Atlantic shedding recent gains as the North of the region came under severe pressure. Conversely, the Asian basin witnessed some substantial gains with the NoPac trips proving to offer underlying support.
• Pressure was applied all week in the Atlantic as tonnage built up in the North. And, despite decent demand from the Black Sea, rates eased on both the transatlantic trips as well as the fronthaul.
• Asia proved to be mostly NoPac centric with solid levels of activity throughout. The highlight was $40,500 being agreed on an 82,000-dwt delivery Japan.

-Ultramax/Supramax

• From the South Atlantic, the upper $20,000s – plus upper $1 million ballast bonus for fronthaul runs to Asia and the Indian Ocean areas – were seen. Demand remained from the Mediterranean for inter Atlantic business.
• A 56,000-dwt open central Mediterranean fixing a trip to West Africa at $51,500. With the upcoming holidays, the Asian arena waned as the week came to an end. However, a 56,000-dwt fixing a trip from Indonesia to China at $43,000.
• Good levels were seen from the Indian Ocean, a 56,000-dwt open Chittagong fixing a trip via South Africa redelivery China at $35,000.

-Handysize

• East Coast South America is a split market with the South Brazil and Argentina region seeing good returns with a 37,000-dwt fixing from Recalada to Peru-chile Range at $54,000.
• A 33,000-dwt open UK was fixed via the Continent to Brazil with Fertilizers at $36,000. Asia has been less active but a 33,000-dwt open Vietnam fixed two to three laden legs at $35,000 with worldwide redelivery.
• A 36,000-dwt open Philippines fixed via Australia to South East Asia with Alumina at $35,000.
• Period saw a 34,000-dwt logger open in Australia fixing for a period in the mid $30,000s plus a $450,000 ballast bonus.

Tankers

-VLCC

• In the Middle East Gulf 280,000mt to US Gulf (via the Cape/Cape routing) continues to be assessed WS20.5-21 level while 270,000mt to China rose two points to WS41 (showing a roundtrip TCE of $3.2k per day).
• In the Atlantic, rates for 260,000mt West Africa to China rose two points on the back of Middle Eastern firmness to WS43 ($6.8k/day roundtrip) and 270,000mt US Gulf to China is now rated a modest $20k higher at $5.125m (a TCE of $9k per day roundtrip).

-Suezmax

• In West Africa the rate for 130,000mt Nigeria/UK Continent improved by two points to almost WS55 (a roundtrip TCE of about $zero), while the rate for 135,000mt Black Sea/Med mirrored this rise to WS62 (a TCE roundtrip of minus $6k per day).
• The Middle East market continues to be active with reports of Basrah/West voyages done by European charterers, reflected in the assessment of 140,000mt Basrah/Lavera now at WS27, unchanged from a week ago.

-Aframax

• Across the Atlantic, rates for the 70,000mt US Gulf/UK Continent fell 2.5 points to WS 80 (a TCE of minus $300/day roundtrip, or a much more positive TCE if a single trip) while the market for the shorter local voyages tumbled further.
• For 70,000mt Caribbean/US Gulf the rate is now assessed 10 points lower week-on-week at WS81.5 (a TCE of minus $3.1k/day roundtrip) while the rate for 70,000mt East Coast Mexico/US Gulf had 13 points deducted over the week to WS84.5-85 region (which shows a roundtrip TCE of minus $1.8k/day).

-Clean

• The Baltic Handy market saw freight rates tested up early in the week, as a result of a lack of tonnage at the front end of the list. As the week progressed, TC9 30k Baltic / UK-Continent then settled out to WS130.
• On the UK-Continent MR freight levels have continued along at WS100 for the TC2 37k UK-Continent / US Atlantic Coast. TC19 37k Amsterdam to Lagos also remains WS100. The excess of available capacity in the region still needs to be cleared out before freight rates can see any real upward progress.
• On the LR1s, TC16 60k Amsterdam / Offshore Lomé freight levels have been further pushed up this week and at time of writing WS87.5 is reported on subjects.