LAST week, the Baltic Dry Index reversed a shallow downward trend and lifted slightly. The BDI on Friday 22 April was 2307, up 8% from the previous Thursday (14 April), when the index sat at 2137.
Capesize
After several weeks of relatively flat price movement, the Capesize 5TC market has started to show a little positive sentiment with levels pushed to US$15,299.
Fixture activity on the whole has not been very eventful, yet the Pacific C5 West Australia to Qingdao route was up +0.773 on Friday 22 April to US$10.741 and has steadily improved over the week.
Meanwhile, the cargo to vessel ratio in the Atlantic is said to have tightened – especially for prompt positions. The trans-Atlantic C8 has risen +2250 week on week, to settle now at US$11,625. Further south in the Atlantic from Brazil, the voyage route C3 Brazil to China currently prices at US$26.04 as activity is ticking over although is largely underwhelming.
The Capesize market is definitely improving in sentiment, which is a welcome sight for many. However, with the dark shadow of the lockdown situation in Shanghai hanging over all the shipping markets, the Capesize main destination market is unable to fire on all cylinders placing somewhat of a cap on trade at this time.
Panamax
It was a limited week of trading due to Easter holidays in many regions.
A gradual decline across all rates in the Atlantic this week was caused by minimal fresh demand with wide disparity between the bid/offer spread throughout the week. Those owners forced to fix prior to the weekend reluctantly reduced offers with charterers seemingly holding firm. Typically, the trans-Atlantic round trips hovered around the US$27,000 mark with several deals concluded at or around this level.
Asia similarly returned a lethargic week overall, with something of a split two-tier market. The southern region was largely under pressure, with many smaller/overage ships discounting rates for the limited Indonesia coal trips. Further north, there were glimpses of support found ex-NoPac as well as the coal trips ex-Australia to India, highlighted by an 82,000-dwt delivery China agreeing a rate of US$25,000 for a NoPac trip and a 74,000-dwt delivery China fixing US$15,500 for a trip via Indonesia redelivery Vietnam.
Ultramax/Supramax
With many countries enjoying Easter celebrations, the information flow was rather slow. However, key areas saw increased positive sentiment with demand returning from the US Gulf and Asia. Period cover was sought and an Ultramax open China was fixed for four to six months trading at around US$34,000.
In the Atlantic, the main focus was from the US Gulf which saw increased fresh enquiry. A 63,000-dwt fixed delivery SW pass trip to Egypt at US$45,000. Elsewhere, a 55,000-dwt open West Africa was fixed via South Africa redelivery China at US$28,750. Stronger demand in Asia helped rates. A 61,000-dwt fixed delivery Kosichang trip via Indonesia redelivery Cambodia at US$32,000.
Brokers said further north there had been an increased level of NoPac business. However, fixtures were kept under wraps. A rather flat week in the Indian Ocean, but a 56,000-dwt was fixed delivery Fujairah trip via Arabian Gulf redelivery Bangladesh at US$38,000.
Handysize
It was a short week for many, but the BHSI made some positive gains after a period of negativity.
Brokers spoke of more enquiry in East Coast South America in recent days. A 33,000-dwt fixed from Vitoria to East Coast Mexico at US$35,000 and a 40,000-dwt was rumoured to have been placed on subjects for a trip from Recalada to Algeria at US$40,000. In the US Gulf a 38,000-dwt was fixed from the US Gulf to Spain in the upper US$20,000s.
In Asia, a 28,000-dwt open in North China was rumoured to have been placed on subjects for a trip to South East Asia with an intended cargo of steels at US$21,000. A 35,000-dwt open in South East Asia fixed a trip to US West Coast in the low US$30,000s. Period was also active with a 28,000-dwt open in Japan in early May fixing four to six months at US$25,000.
Clean
An upturn in freight this week in the Middle East Gulf. The LR2s of TC1 75k Middle East Gulf/Japan came up 10.71 points to WS148.57. The LR1s also jumped and TC5 55k Middle East Gulf/Japan is currently WS193.57 (+29.64) and a trip west (TC8) has breached the US$3m mark, now up to around US$3.2m and looks to be firm at time of writing.
The MRs of TC17 35kt Middle East Gulf/East Africa were very active this week and rates have ticked up again. The index is currently WS327.08, up 16.25 points and a TCE of 26,000 US$/day. West of Suez, on the LR2s, TC15 80k Mediterranean/Japan has retested up after a period of relatively unclear activity. A couple of voyages fixed at US$2.9m this week. The LR1s of TC16 60k Amsterdam/Offshore Lomé have also rallied and hit WS175 this week.
On the UK-Continent, MRs have seen incremental softening. Both TC2 and TC19 have come down around 8.5 points to WS205.28 and WS215.71 respectively with the delta between the two routes stable at its usual 10 points. The USG MR market has fallen this week almost to mirror the extraordinary rise it took before the long easter weekend. TC14 38k US Gulf/UK-Continent slumped 82.86 points to WS185.71 and TC18 the MR US Gulf/Brazil trip also had a large chunk taken out of it and is now marked at WS235.71 (-77.86). The MR Atlantic basket TCE dropped from US$36,085/day to US$20,959/day. TC9 30kt Primorsk/Le Havre has been relatively stable for the most part, only losing 6.43 points to WS313.57. In the Mediterranean TC6 30kt Skikda/Lavera’s downward trend continued to WS371.88 (-20 points) but it is still rendering a round trip TCE of just over US$60,000/day at present.
VLCC
A shortened week has seen tonnage lists build and sentiment has weakened. For 280,000mt Middle East Gulf/USG (via Cape of Good Hope) the rate has fallen almost two points and is now assessed at WS30. Meanwhile, in the 270,000mt Middle East Gulf/China market, rates have also eased two points to around the WS50 mark (a round trip TCE of minus US$1800 per day), with Unipec reported taking a Maran vessel and a VL8 Pool ship at WS50.
In the Atlantic region, demand has reduced and rates came under pressure. For the 260,000mt West Africa/China route, where there has been limited fixture activity this week, rates fell from low-mid WS60s last week, through the WS60 mark earlier this week and are now assessed at WS57 (US$7,000 per day round-trip TCE). In the 270,000mt US Gulf/China market, rates suffered a similar fate having fallen back through the US$7m mark to now be assessed at US$6,775,000 (a round voyage TCE of US$3900 per day).
Suezmax
Rates for the 135,000mt Novorossiysk/Augusta eased 25 points since Tuesday and are now assessed at just under WS270 (a round-trip TCE of US$127,100 per day). After the recent upward pressure caused by the US Gulf and Caribbean markets eased, rates for 130,000mt Nigeria/UKC have dropped about 40 points this week to WS122.5/123 level (a round-trip TCE of US$22,000 per day). For the 140,000mt Basra/West Mediterranean route the rates have slipped from Tuesday’s WS62.5 to the latest assessment at WS56, as Turkish refiners were reported to have fixed a modern Greek vessel at WS55 for a voyage to Turkey.
Aframax
The 80,000mt Ceyhan/Mediterranean market fell hard, losing over 60 points this week to WS172.5 (a round-trip TCE of US$28,600 per day). In Northern Europe the rate for 80,000mt Hound Point/UK Continent shed 13 points since Tuesday to WS168 (round-trip TCE of US$28,700 per day).
In the Baltic Sea markets, as the war in Ukraine continues, Russian cargo owners are still having to seek buyers from countries such as India and China. One Russian charterer reported fixing an overaged Greek vessel at US$12m from Ust Luga to North China. For the 100,000mt Primorsk/UK Cont trip, demand for tonnage has understandably significantly reduced. Tied with less of a need for ice-class Aframaxes and a building position list, sentiment has pushed rates back down through the WS600 mark and the latest assessment is at WS573.75 (a round voyage TCE of US$261,400 per day).
Across the Atlantic, the market has also turned downwards with rates for the shorter-haul 70,000mt EC Mexico/US Gulf route falling 12.5 points since Tuesday to WS240 (a round-trip TCE of US$40,900 per day). For the 70,000mt Caribbean/US Gulf trip, rates slipped eight points this week to WS233 (a round-trip TCE of US$35,400 per day). In the 70,000mt US Gulf/UK Continent market, rates shifted 12.5 points lower to WS204 (US$26,300 per day round-tip TCE).
