Baltic Exchange: Maritime market highlights 5-9 Jul

Bulk carriers

-Capesize

• The market staged a turn around this week lifting $3,199 on the TC average to settle Friday at $30,972. Timecharter levels now look to be trading towards the upper range of $35,000, where it has attempted several times recently to break through without success.
• The fronthaul C9 had a significant push to close out the week as Charterers were heard paying up for tonnage.The Brazil to China C3 was a steady gainer throughout the week, now at $26.875, while the timecharter C14 on the route ticked up to $28,046.
• The ballaster route remains the laggard against the transpacific C10 at $30,367 and the transatlantic at $34,275.

-Panamax

• A mixed week, which started with rates appearing to be slightly under pressure due to thin activity and talk of Capesize tonnage eating into some transatlantic stems from north America as a result of a tight tonnage count in the Skaw-Gibraltar position.
• Solid support all week on fronthaul rates principally ex Continent and Black Sea, with route P2A averaging around the $55,000 mark. Some support was found midweek for early August arrivals ex EC South America, predominantly on the back of FFA gains.
• Asia proved to be largely sluggish all week. Aside from several Japanese coal stems – and a splattering of Korean coal tenders – support was lent further afield from the Black sea and EC South America but it proved to be a testing week at times for Owners in the east with a lack of demand in the region. Typically, the P3A rate averaged around the $32,000 mark.

Ultramax/Supramax

• From the Atlantic, more scrap movements saw 57,000-dwt fixing in the upper $30,000s from the Continent to east Mediterranean. From the US Gulf a 55,000-dwt was fixed for a petcoke run to China at $43,500.
• Meanwhile in Asia, a 53,000-dwt open south China fixed an Indonesian coal run to China around $25,000 level. Further north, a 57,000-dwt open north China fixed a trip to Bangladesh at $31,000.
• In the Indian Ocean area, a 58,000-dwt was fixed delivery South Africa redelivery Pakistan at $33,000 plus $550,000 ballast bonus. All eyes are on the upcoming week to see if there is any change in direction.

Handysize

• A 36,000-dwt open in Antonina was rumoured to have been fixed basis delivery DOP via River Plate to Brazil with grains at $41,000. The Black Sea grains season has started with brokers feeling this region will continue to strengthen in the coming weeks.
• A 40,000-dwt, meanwhile, was rumoured to have been fixed basis delivery Cannakale to the US Gulf at $30,000. Asia has seen positive moves in most regions with a lack of prompt tonnage allowing Owners to achieve improved levels.
• A 36,000-dwt open Indonesia was rumoured to have been fixed basis delivery DOP via Australia to China at $28,000, whilst a 35,000-dwt logger was rumoured to have fixed for two Laden Legs with redelivery Pacific at $33,000.

Tankers

-VLCC

• In the Middle East the market for 280,000mt to US Gulf (routing via Cape/Cape) continues to be assessed around the WS18-18.5 mark while rates for 270,000mt to China have remained flat at WS31.5-32 level (showing a round-trip TCE of about minus $5k/day).
• In the Atlantic, rates for 260,000mt West Africa to China were again kept flat at WS33.5 (a TCE of minus $1,800/day round trip) and 270,000mt US Gulf to China is now assessed $20k lower at $3.95m (a roundtrip TCE of just below zero/day).

-Suezmax

• In the 130,000mt Nigeria/UK Continent market rates have been hovering around the WS49-50 level (a round-trip TCE of about minus $1,800/day).
• Meanwhile in the Mediterranean rates for 135,000mt Black Sea/Med are being assessed static at WS60 (a round-trip TCE of about minus $6,400/day). The market for 140,000mt Basrah/Med softened 1.5 points to WS30.

-Aframax

• In the Mediterranean, the market looks to have bottomed out and is rebounding – albeit currently on a small scale. Rates for 80,000mt Ceyhan/Lavera are up six points to nearly WS94 (showing a round-trip TCE of $4,300/day).
• In Northern Europe, the market continued to slide with the rate for 80,000mt Cross-North Sea now at WS93 (a round trip TCE of minus $4,600/day), down six points from a week ago.
• In the 100,000mt Baltic/UK Continent market the rate fell eight points this week to WS60 (a round trip TCE of minus $1,400/day).

-Clean

• In Asia MR’s for Singapore to EC Australia (TC7 35k) fell three points with recent fixture at WS117.50 by Ampol on Nord Miyako. There was a fall of over $1/ton on South Korea to USWC (TC10 40k) where last done was $750k lumpsum.
• A cargo to Hawaii for 18/20 July was covered at around $625k level. For South Korea to Singapore (TC11 40k) $190k was fixed by Shell, which is about 40 cent drop. The TCE for this shows over minus $5,500 on a roundtrip.
• Atlantic rates for Cont/ west Africa were static at WS80 on LR1 (TC16 60k) and around WS120 for MRs (TC19 37k).