Baltic Exchange Shipping Insights

DRY BULK REPORT

Capesize

Overall it was a negative week for the Capesize market, with many routes losing ground. A limited amount of timecharter appeared, with most activity seemingly centred on voyage basis.

However, a 176,000dwt vessel was rumoured fixed delivery China, mid-September, for a west Australian round at $30,000.

The highlight of the week was on the C5 route, which initially lost ground, before bouncing back to around the $11.00 mark as the week closed, with talk of BHP fixing this level.

For the C3 route, limited fresh information surfaced. However, the Newcastlemax, 'Stamatis', was linked to 190,000/10 iron ore, for early October dates at around $25.25- $25.50 level.

For trans-Atlantic runs, a 182,000dwt ship was reported fixed for 160,000/10 coal, from Puerto Bolivar to Rotterdam for end September/early October dates, at $14.10, with an Iskenderun option at $15.30.

Elsewhere, 130,000/10 iron ore, from Saldanha Bay to Hamburg, basis 1/10 October dates, was covered in the mid-low $13.00s.

Panamax

Another week without fireworks. The market drifted lower again, with only the Atlantic index returning to positive territory at the end of the week, mainly due to an increase in shorter Baltic trades and a tightening of tonnage on the North Continent.

A modern Kamsarmax fixed at $25,000 from the Continent to Italy, redelivery Gibraltar.

The Pacific round rate dropped over $1,250, the most during the week, with the paper market affecting sentiment, several vessels being reported as failed, and holidays in Asia at the end of the week.

The futures market did recover towards the end of the week, but physical trade volumes had already dwindled by then.

South America was not as active as usual, however, brokers felt levels were holding up quite well, especially for the better described units. Understandably there was little period market news again.

Supramax/Ultramax

The Baltic Supramax Index (BSI) had a weaker start to the week and the softening trend continued.

The US Gulf remained relatively slow, but the rates stayed firm.

Brokers reported no signs of recovery from East Coast South America and pressure remained on the tonnage open in Far East.

A 64,000dwt vessel open early October in China was fixed on subjects for two years, with worldwide redelivery, at $12,250.

From East Coast South America, a 55,000-tonner was fixed to Algeria with grains at $24,000.

From the Mediterranean, a 56,000dwt ship, open Canakkale, achieved $13,500 for a trip to the US Gulf.

A 61,000dwt vessel, open in the Gulf, was fixed to China at $31,000, possibly with concentrates.

More stems were noticed going to Vietnam from Indonesia, with a 56,000dwt ship, open South China, and a similar-sized vessel open Thailand, both fixing in the mid $12,000s.

North Pacific fixtures were reportedly failed on an Ultramax new building at $14,000 and concluded in the $10,000s for a Dolphin 57 type, open North China, with redelivery in the Singapore-Japan range.

Handysize

The Baltic Handysize Index (BHSI) recorded the highest point since January 2014 at 692.

However, the trend was paused on Thursday, declining a point. Like the Supras, rates from the Mediterranean/Continent region and East Coast South America softened.

The Pacific remained slow throughout the week. On the period front, a 34,000dwt grabber, open Malaysia, was fixed for about seven to ten months in the mid $10,000s.

A 28,000dwt ship, open in the Spanish Mediterranean, was fixed for a short period trading at a rate close to $11,000 with redelivery in the Atlantic.

A 32,000dwt vessel was fixed from Milos for a trip to the Continent at $10,000, while a 35,000dwt ship was fixed for a trip from Santos to Brake at $18,250.

In the East, a larger 44,000dwt ship was booked for a trip via Indonesia to CJK at $16,000 basis Singapore delivery.

TANKER MARKET REPORT

VLCC

Middle East Gulf rates recovered slightly with 280,000mt to US Gulf, basis Cape to Cape now being rated up a point at WS 26/27 level. 270,000mt to China picked up about three to four points to WS 53.5/54 region.

Rates for 260,000mt West Africa to China rose about five points to WS 57.5. 270,000mt US Gulf to China rates improved about $250k to around $6.5m.

In the North Sea, a Hound Point to Korea trip was reported at just under $6m.

Suezmax

Rates for 130,000mt West Africa to UK Continent were sideways again at WS 60, while 135,000mt Black Sea to the Mediterranean improved a couple of points to WS 72.5 level.

The 140,000mt Basrah to Mediterranean rates fell a couple of points to WS 30.

Aframax

80,000mt Ceyhan to the Mediterranean gained another 10 points to WS 105. In the North Sea Baltic rates improved.

80,000mt North Sea to UK Continent was at WS 100, up 5 points.

100,000mt Baltic to the UK Continent is now rated 10 points higher week-on-week at WS 87.5/90 level.

However, at time of writing there is a report of WS 95 on subjects.

On the other side of the Atlantic, 70,000mt Caribbean to US Gulf remained flat at WS 120.

70,000mt US Gulf to the Mediterranean rose about five points to WS 112.5/115 level, although one charterer took a suezmax for an afra cargo, ensuring a safe itinerary at WS 119 equivalent.

Clean

The market for 75,000mt Middle East Gulf to Japan came under downward pressure, easing from WS 105 to WS 102.5, with talk of Socar now fixing at WS 100.

55,000mt to Japan lost around 2.5 points to sit now at WS 112.5.

Limited enquiry in the 37,000mt clean Continent to US Atlantic Coast trade saw rates drop 2.5 points to WS 95.

The 38,000mt US Gulf to UK Continent backhaul trade remained under downward pressure, easing five points to WS 75 region.

NEW BALTIC OpeEx INDEX

The Baltic Exchange has launched a new quarterly assessment to track the cost of operating vessels. Initially covering a range of dry bulk vessels, the service will also be expanded to tankers and other sectors. The Baltic Operating Expense Index covers crew, technical, insurance and dry dock costs.

Baltic Exchange Chief Executive Mark Jackson said: "The Baltic Operating Expense Index is intended to provide transparency to the fluctuations in running costs. Daily operating costs are one of the variables used by shipping investors to calculate the profitability and residual value of their assets. We already provide independent freight, sale & purchase and recycling assessments. With the addition of operational expenses assessments, shipping investors now have a complete toolkit to manage their risk and aide their decision process."

See https://www.balticexchange.com/news/press-announcements/article/baltic-exchange-launches-new-ship-operating-expenses-assessment/3965/

This report is produced by the Baltic Exchange.

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