Baltic Exchange: Maritime market highlights 6-10 Dec

Bulk carriers

Capesize

• The Capesize market peaked mid-week from its recent rally as the 5TC marked down -$1344 on the last day of the week to settle at $40,035. A tonnage tightness in several positions, particularly in the north Atlantic, led to gains early on in the week. However, sustained downward pressure from the Pacific and Ballaster routes took its toll as the week progressed.
• The West Australia to China C5 closed out at $13.732. And while the route suffered substantial losses to end the week, there is said to be tightness on loading position in the nearby dates.
• The Transpacific C10 now rates $39,308, while the China Brazil China ballaster route C14 now rates at $27,268 to the Transatlantic C8 at a stronger $52,750.

Panamax

• The week began on a bright note for the Panamax segment with a positive and firmer looking market carried over from previous. However, this proved to be very short lived with both basins easing. The support had ebbed away with Charterers now taking a firm hold on the market.
• The Atlantic saw tonnage build up in most areas. And, without any distinct enquiry, rates had to give and duly obliged. Committed ships agreed to APS levels equivalent to sub index rates basis DOP delivery only applied further pressure.
• A 82000-dwt delivery Rotterdam agreeing $36,000 for an EC Canada round trip midweek. Asia followed a similar pattern.

Ultramax/Supramax

• Period activity was seen, with Ultramax size open China fixing in the mid to upper $20,000s for one year. In the Atlantic, a 63,000-dwt from the US Gulf fixed 10/12 months trading redelivery Atlantic at $30,000.
• From the Atlantic, increased activity from The Continent saw 57,000-dwt fixing a scrap run to the East Mediterranean in the upper $30,000s.
• From the US Gulf a 55,000-dwt was heard to have fixed a run to the Black Sea in the high $30,000s.

Handysize

• In East Coast South America the market remains firm with a 38,000-dwt fixing a trip from Brazil to North coast South America in the low $40,000’s.
• A 34,000-dwt open in Northern Europe was fixed for a trip via the Baltic to the Western Mediterranean at $32,000.
• A 34,000-dwt open in Otranto fixed via the Black Sea to Tampa-Vera Cruz range with an intended cargo of steels at $29,000 and a 37,000-dwt open in Turkey was fixed for a trip to North Coast South America – East Coast South America range at $29,000.

Tankers

VLCC

• The rate for 270,000mt Middle East Gulf to China fell almost two points to WS38 (showing a roundtrip TCE of minus $1.3k/day).
• In the Atlantic market, rates for 260,000mt West Africa to China dropped 1.5 points to WS39.5 (a TCE of $1.3k/day roundtrip) and 270,000mt US Gulf to China shed $600k to $4.66m (a TCE of $3.2k per day roundtrip).
• Latest reports have a major trader taking a 2019 scrubber-fitted Greek ship at $4.6m.

Suezmax

• In West Africa, the market has taken a positive turn with rates for 130,000mt Nigeria/UK Continent gaining 16 points to WS76 (a roundtrip TCE of $10.8k/day).
• The market for 135,000mt Black Sea/Med has seen rates move in the same direction, climbing 13.5 points to just shy of WS80 (a TCE roundtrip of about $6.1k per day).
• In the Middle East Gulf, again there has been very little activity with the only notable fixture being a Spanish charterer taking a Suez Pool vessel at WS30 for a Basrah/Spain trip, bringing the assessment of 140,000mt Basrah/Lavera down about three points to the WS31.5 level.

Aframax

• In Northern Europe the market for 80,000mt Cross-North Sea recovered two points to WS101.25 (a TCE of $855/day) and the rate for 100,000mt Baltic/UK Continent gained a point to the WS80 region (a TCE of about $7.7k per day roundtrip).
• Across the Atlantic, the market tightened and rates took an upward turn. The 70,000mt Caribbean/US Gulf rate rose 35.5 points to just below WS160 (a TCE of $22.1k/day roundtrip), mostly on the back of a booming 70,000mt East Coast Mexico/US Gulf market where rates shot up 38 points week-on-week to WS167.5 (this shows a roundtrip TCE of $27.7k/day).
• The market for the 70,000mt US Gulf/UK Continent trip saw rates shift nine points upwards to just under WS138 (a TCE of $16.8k/day roundtrip however, as usual, basis one-way economics this improves dramatically).

Clean

• In the Mediterranean, the Handymax have stolen the show this week with lots of enquiry off prompt dates propelling rates up. TC6 30kt Skikda / Lavera is currently WS270 (+ WS127.81). The LR2s, TC15 80k Mediterranean / Japan, showed no support for any further growth and at the time of writing still hold at around the $2.1m mark.
• The Baltic Handy market has been continually busy all week. TC9 30k Baltic / UK-Continent has been further tested upward to WS212.14 (+WS23.93).
• On the UK-Continent, MRs have again had good activity levels throughout this week and another uptick in enquiry. TC2 37k UK-Continent / US Atlantic Coast is currently marked at WS181.67 (+WS18.06). TC19 37k Amsterdam to Lagos has had a similar rise up to WS186.07 – up 18.57 points.