Maritime market data analyst The Baltic Exchange has issued its weekly reports for 9-13 March, to provide information of the bulk and dry market performance. The information is used by shipbrokers, owners & operators, traders, financiers and charterers as a reliable and independent view of the dry and tanker markets.
Some highlights from Baltic Exchange’s dry bulk and tanker reports for this period can be found as follows:
Bulk carriers
-Capesize
As previously mentioned, if the Capesize market wasn’t at precipitously low levels already, it would be on the speed boat there now.
- The Capesize 5TC opened the week at $2,542 to close at $2,797.
- West Australia to Qingdao dropped -.472 to settle the week out at $4.464.
- Meanwhile, the Brazil to China C3 market plunged down to settle at $10.535 from $11.84 earlier in the week.
- Iron ore continues to flow to China, with one source mentioning no significant disruptions to flow so far.
-Panamax
The week began on a cautious note, with the news of oil prices and stock markets crashing. Rates stabilised eventually, as market sentiment picked up with fuel recovering. However, by Thursday, negative sentiment underpinned the market, with many fixtures failing on subjects.
- The number of vessels in ballast, built up, prompting a mark-down on rates, as well as global markets taking further hits.
- Period activity was sparse, but a nicely described 82,000dwt vessel achieved $13,250, plus $14,500 ballast bonus for one option, one-year period.
- East Coast South America grains to the Far East tended to be most active over the week, with a mixture of Southeast Asia deliveries and delivery Arrival Pilot Station (APS), plus ballast bonus basis.
-Supramax/Ultramax
The Pacific Basin proved firmer this week, predominantly driven by Indonesian coal stems, both into India, and China.
- The relevant S8 Indonesia-India and S10 Indonesia-China routes both posted gains of $1,412, and $1,289 on the week, to close at $5,575, and $6,089 respectively.
- The Atlantic continued to be patchy, with steady enquiry from the US Gulf and the Black Sea.
- East Coast South America posted more modest improvements of $383, and $957 on the S5 East Coast South America-fronthaul, as well as the S9 East Coast South America-backhaul routes, as Panamaxes sought to compete.
-Handysize
The Handysize sector continued to make gains this week, which led to the Baltic Handysize Index (BHSI) recording its biggest improvement since the beginning of the year…However, due to the Coronavirus it was also reported that some vessels, open in the Mediterranean, were failed on subjects, calling at Italy as last port.
- A 39,000dwt ship, open Nemrut, was fixed at $7,250 for the first 50 days for a trip to the US Gulf and $9,500 thereafter.
- A 37,000dwt vessel, delivery Hamburg, was fixed for a trip to China at $14,000. From the US Gulf, brokers reported a tight tonnage list, with a 34,000dwt ship fixed at $13,000 from the Gulf to East Coast Mexico with grains.
- In the Indian Ocean, a 32,000dwt vessel was fixed basis Salalah, for a trip to Indonesia at $6,800.
- Lastly on the period front, a 32,000dwt ship, open Amsterdam, was fixed at $9,000 for between five to seven months, with redelivery in the Atlantic.
Tankers
-VLCC
- A week ago in the Middle East, the Saudis lowered their April crude Official Selling Price (OSP) and raised production levels by 2.6 million barrels per day (BPD), to 12.7m BPD, with an additional one million BPD coming from the United Arab Emirates. This caused the oil price to drop over 30 per cent creating a price contango which traders and oil companies alike attempted to capitalise on with storage enquiry.
- Over 50 ships were fixed on subjects in the first half of the week alone for voyages, many for US Gulf discharge where rates have taken a meteoric rise. 280,000mt to the US Gulf, via the Cape to Cape routing, was 400 per cent higher at WS167.5 as last done.
- For 270,000mt to China, rates have almost tripled to WS180.
- In West Africa the trip for 260,000mt to China rates have risen over 225 per cent, to WS160.
- The market for 270,000mt US Gulf to China has more than doubled to $15.5m level.
-Suezmax
- In the West Africa to UK-Continent (UK-C) market, owners rode the metaphorical wave caused by the VLCCs and were able to push rates for 130,000mt to WS135 level, more than doubling last week’s rate.
- Rates for 135,000mt Black Sea to the Mediterranean have risen 44 points to WS127.5-130 level.
-Aframax
- Rates for 80,000mt Ceyhan to the Mediterranean climbed over 30 points to WS135-137.5 level.
- In Northern Europe, 80,000mt Cross-North Sea gained 15 points to WS110. 100,000mt Baltic to UK-C shared the same uptick to WS90.
- On the other side of the Atlantic, 70,000mt Caribbean to the US Gulf (USG), owners pushed the market up 20 points to WS177.5.
- Rates for 70,000mt USG to the Mediterranean increased 35 points, rising to WS165-167.5 level.
-Clean
- A positive week saw rates in the 75,000mt Middle East Gulf to Japan trade climb from WS125 to sit now at close to WS155.
- In the 37,000mt UK-C to US Atlantic Coast trade, it was a more volatile week, with rates starting in the high WS170s, before dipping down to WS160.
