Baltic Exchange: Maritime market highlights 3-7 Jan

Bulk carriers

Capesize

• The Capesize Baltic index returned from year-end holidays this week and immediately saw activity coming from the usual West Australia iron ore flow. Closing out 2021 at $19,176 the Cape 5TC ended its first week in 2022 at $20,167.
• Initial movement in the market at the beginning of the week appeared positive as physical rates lifted slightly, yet paper markets took the opposite view, leading the 5TC to sink midweek before lifting again for the end of week.
• The majority of the weeks trade activity came from the West Australia region to China as the C5 route settled up +.459 Friday to close at $9.632. Fixtures out of Brazil and the North Atlantic was more muted, as to be expected this time of the year.

Panamax

• $36,000 was agreed on an 82,000-dwt delivery Hamburg for two laden legs within the Atlantic but this did involve breaching and ice trading.
• The Asian market this week was essentially supported by EC South America activity with limited demand from Australia and NoPac.
• As news announced midweek of an Indonesian coal export ban along with subsequent easing in ECSA demand, sentiment waned, and all markets began to see something of a correction. Period activity appeared in abundance with a couple of protagonists taking positions, an 82,000-dwt delivery China achieving $28,500 for five to eight months trading, whilst the same size/type also delivery China agreeing $26,500 for one year’s trading.

Ultramax/Supramax

• In the Atlantic, the US Gulf was positional a 56,000-dwt fixing a trip from North Coast south America to the Far East at $37,000. Whilst from the Mediterranean a 62,000-dwt fixed delivery Canakkale trip redelivery US Gulf at $23,000.
• From the Indian Ocean it was a little more active. A 58,000-dwt fixing a trip delivery Chittagong via East Coast India redelivery Far East at $21,500.
• Further east, a 58,000-dwt fixed delivery Philippines via Australia redelivery Japan at $22,000.

Handysize

• A 38,000-dwt open in Antwerp fixing for a trip to the US East Coast at $17,500 with an intended cargo of Steels.
• A 32,000-dwt was rumoured to have fixed grains from Rouen to the Western Mediterranean at $14,000.
• The US Gulf also has softer sentiment with a 38,000-dwt fixing from New Orleans to Ireland with an intended cargo of grains at $24,5000.
• In Asia, the market has been steady despite the coal ban in Indonesia with a 32,000-dwt fixing from Samalaju via Australia to South China with an intended cargo of Salt at $23,000.

Tankers

VLCC

• For 280,000mt Middle East Gulf/USG (via Cape of Good Hope) the market is assessed at WS18.5, while 270,000mt Middle East Gulf/China is now a point lower since the start of the year at W37 (showing a round trip TCE of minus $760 per day).
• In the Atlantic region 260,000mt West Africa/China dropped a point to WS37.5 (a round-trip TCE of $1k/day) and 70,000mt USG/China shed $20k during the recent few days to $4.83m (a round-trip TCE of $2.7k/day).

Suezmax

• Rates have been almost static in the West this week with the rate for 130,000mt Nigeria/UKC coming off half a point since Monday to a fraction below WS55 (a round-trip TCE of $1.6k/day) and 135,000mt Black Sea/Augusta is at the midway point between WS60-62.5 (a round-trip TCE of minus $3.6k/day).
• In the 140,000mt Basrah/West Mediterranean market the rate has sunk about four points to WS25 after a few cargoes were covered at this level.

Aframax

• The 80,000mt Ceyhan/Mediterranean market softened slightly this week with rates losing four points to the WS82.5 level (a TCE of $1.5k/day). In Northern Europe rates for 80,000mt Hound Point/UKC fell seven points over the course of the last few days to WS103.5 (a TCE of $5.7k/day) and 100,000mt Baltic/UKC rates have suffered a nine-point drop to WS120 (a TCE of $31.8k/day).
• However, the returns are still inflated due to the need for Ice-Class vessels.  On the other side of the Atlantic fortunes have fared better with 70,000mt US Gulf/UK Continent rising 16 points since Monday to WS106 (a round-trip TCE of $9.5k/day, improving significantly if calculated basis 1-way economics).

Clean

• In the Middle East Gulf the LR2s of TC1 currently sit at WS98.71 a round trip TCE of $6976/day and the least impacted of the week at -WS7. The LR1s have been tested the most and TC5 55k Middle East Gulf / Japan is down 14.5 points to WS99.07 a round-trip TCE of $4126/day.
• On TC8 a widely reported voyage from this week at $1.625m has led the index to settle at this level for the moment. The MR run TC17 also dropped WS9.17 to WS179.58.
• In the Mediterranean, Handymax vessels have been chipped away at by charterers and TC6 30kt Skikda / Lavera has come off WS10.62 to WS 186.63.
• The LR2s, TC15 80k Mediterranean / Japan suffered soft sentiment this week and have dropped slightly to around the $1.87m mark.