Baltic Exchange: Maritime market highlights 30 Aug- 3 Sept

Bulk carriers

-Capesize

• The Capesize market crested over the past week as the 5TC retracted $4452 since last Friday to close out at $46,647.
• The north Atlantic basin, largely inactive over the past several months, has surged since mid-August settling today at $52,099 on the Transatlantic C8 and $79,600 on the Fronthaul C9.
• The fronthaul route has been particularly volatile with large swings between days for tonnage taking cargo back to the far east.

-Panamax

• The Panamax market saw substantial corrections this week, particularly in the Atlantic as pressure was applied all week with a basic lack of demand especially for the Transatlantic trades. Conversely, Asia witnessed strong cargo volumes from all three major origins Australia/NoPac/Indonesia which proceeded to keep rates well balanced.
• In the Pacific, an 82,000-dwt delivery China fetched $37,000 for a trip via NoPac redelivery Singapore-Japan range, whilst an 82,000-dwt delivery Philippines agree a rate of $37,000 for a trip via Indonesia redelivery China.
• Period activity was scarce but did include reports of an 82,000-dwt achieving $27,000 for roughly 10-12 months employment.

-Ultramax/Supramax

• From the Atlantic a 58,000-dwt was heard fixed delivery east coast South America trip to Bangladesh at $25,000 plus $1.475,000 ballast bonus.
• Further north, a 63,000-dwt was fixed for a trip from north coast South America to India at $49,000. From Asia, a 63,000-dwt open Cebu was fixed for a trip to east coast India-Bangladesh at $43,000.
• For Pacific round voyages a 63,000-dwt open South Korea was failed for trip via Australia redelivery Singapore-Japan at $40,000.

-Handysize

• Limited period activity was seen, but a 33,000-dwt was recently fixed from north coast South America for three years trading at $17,000. A 33,000-dwt open Algeria was also heard to have fixed five to seven months trading redelivery Atlantic at around $34,500.
• From the US Gulf pressure eased a 38,000-dwt fixing at around $22,000 for a trip to the Continent. From the east Mediterranean a 32,000-dwt was fixed delivery Canakkale for a trip to west Africa at $42,000.
• From Asia limited activity was heard as brokers said cargo activity dropped off with owners looking to the upcoming week to see if this trend would change direction.

Tankers

-VLCC

• The rate for 280,000-mt to US Gulf (routing via the Cape/Cape) remains steady at the WS18 mark, while 270,000-mt to China saw about a two point gain to just shy of WS34 (a round trip TCE of $-2,000 per day).
• In the Atlantic, despite a lack of reported fixing activity, rates for a 260,000-mt West Africa to China modestly improved by half a point to WS34-34.5 level (a round trip TCE of $-350 per day).
• A 270,000-mt US Gulf to China marginally rose $6,000 to $3.97 million although Vitol is reported to have taken a modern Omani vessel (recently employed for the carriage of clean petroleum products) at $3.95 million.

-Suezmax

• In West Africa the short week has stifled the recent gains and rates have dipped slightly. A 130,000-mt Nigeria/UK Continent is now worth WS55 (a round trip TCE of almost $2,000 per day), two points less than a week ago.
• Rates for 135,000-mt Black Sea/Mediterranean eased 1.5 points to WS62 (a TCE round trip of $-4,400 per day).
• The Middle East market was again quiet this week with rates for 140,000-mt Basrah/Mediterranean holding at the WS25-26 level.

-Aframax

• In the Mediterranean, an 80,000-mt Ceyhan/Lavera remains at the WS87.5 mark (about $2,000 per day TCE roundtrip) while in Northern Europe 80,000-mt Cross-North Sea held at the WS92.5-93 region (a round trip TCE of $-4,700 per day) and rates for 100,000-mt Baltic/UK Continent were stagnant at the WS59-60 level (a TCE of about $-2,000 per day round trip).
• Across the Atlantic, the market has seen a bad weather induced improvement with rates for 70,000-mt Caribbean/US Gulf between WS105-107.5 (a TCE of $6,4000 per day round trip) and 70,000-mt East Coast Mexico/US Gulf fixing a good number of times, rising 30 points to WS112.5 (a round trip TCE of $9,600 per day).

-Clean

• The Middle East Gulf has seen continued activity this week on all sizes. LR2s to Japan (TC1) have risen another five points to WS115, a round-trip TCE of $12,518 a day. The LR1’s have readjusted as ship availability has increased this week and TC5 55k Middle East Gulf/Japan now in the WS125 region, a round-trip TCE $11,500 a day.
• The MR 35k Middle East Gulf/East Africa (TC17) has had consistent momentum this week from high demand in the region. Freight rates have subsequently risen by 21 points to WS222, a round-trip TCE of $15,435 a day.
• The Mediterranean Handy market has seen rates erode further this week due to an oversupply of tonnage in the region and TC6 30kt Skikda/Lavera is now at WS112.5 (-WS2.19). The LR2’s still remain to be properly tested following the LR2 activity in the Middle East this week, TC15 80k Mediterranean/Japan currently marked around $1.7 million.