THE BALTIC Dry Index decreased this past week to 1902 on Friday 19 July. A year ago, the same week ended on 978.
Capesize
It was only on Thursday that the Capesize 5TC climbed to positive territory and became closer to US$25,000. But the correction or Friday eventually settled the week at US$24,652. In the Pacific, there was more resistance from owners towards the end of the week, which pushed C5 to US$9.725 in the end.
Meanwhile, more coal cargoes from East Australia to China were fixed on timecharter trips according to report. Brazil to Qingdao had an active week for both first and second half of August loading. C3 stopped drifting for a day but that was not sufficient to cover the retreat felt throughout the week. The north Atlantic felt under pressure in general, transatlantic and fronthaul runs were marked at US$25,750 and US$55,188, respectively.
Panamax
Sentiment in the South Atlantic began to decline for the middle of August liftings below the current prompt levels a 76,000-dwt was rumoured to have fixed basis delivery EC South America on the 13th of August for a front haul requirement at US$17,000 plus a US$700,000 ballast bonus, whilst 80,000-dwt vessel fixed with prompt dates passing Singapore via EC South America to Singapore-Japan at US$15,750 against a mid-August delivery was placed on subjects basis delivery passing.
Activity in Asia was also said to be improving, but levels had so far remained balanced with an 84,000-dwt fixing from Kinuura with prompt dates via Eastern Australia to South China at US$15,000; whilst an 81,000-dwt fixed from Lanshan via Nopac to China at US$15,250 earlier in the week. Period activity was also visible with an 81,000-dwt fixing basis delivery in Kaohsiung with prompt dates for five to eight months at US$16,500 and a 76,000-dwt rumoured to have been placed on subjects basis delivery CJK for five to seven months in the upper US$14,000’s.
Ultramax/Supramax
With the Atlantic in summer holiday mode, it remained a rather positional market. Sentiment from the US Gulf was mixed, as brokers saw a slight weakening of fronthaul rates whilst trans-Atlantic runs remained fairly firm. A 63,000-dwt fixing delivery US Gulf for a trip to Finland in the low US$26,000s.
The Continent – Mediterranean lacked much fresh impetus with 63,000-dwt vessels seeing in the US$11,000s for Mediterranean backhauls to US. The South Atlantic remained fairly active although rates for ultramax size hovered around the mid to low US$16,000s plus low to mid US$600,000s ballast bonus. From Asia, brokers said that there remained ample tonnage supply although there were still some reasonable levels achieved. A 61,000-dwt open Anyer fixed a trip via Indonesia redelivery South China at US$19,000. The Indian Ocean lacked fresh enquiry keeping a downward trend some said. Period activity remained rather muted, but a 63,000-dwt open Indian Ocean fixed for 3/5 months trading redelivery worldwide at US$14,500.
Handysize
A week of minimal visible activity across both basins in the handy sector. In the Atlantic, a general lack of fresh cargo enquiry which added pressure to the market. Positivity continued across the South Atlantic with a 43,000-dwt rumoured to be on subjects basis delivery WWR Upriver for early August to West Coast South America intention Ecuador at US$27,500, whilst a 37,000 dwt was fixed delivery South Brazil trip to Continent at US$17,000. With continued improvement, gains were also seen in the US Gulf region this week with 33,000-dwt fixing from Camden via the US East Coast to Tukey with an intended cargo of Scrap at US$17,000. Asia experienced a generally balanced week with backhaul demand and owners’ resistance to fix ships for backhaul trips which has some positive impact on the implied rates for the routes, but numbers had remained steady as the week progressed.
Clean
LR2
LR’s in the MEG we subject to downward pressure this week. The 75Kt MEG/Japan TC1 index dropped 12.78 points to WS160.28. Similarly, for a 90kt MEG/UK-Continent TC20 run freight has come down half a million dollars to US$5,230,000.
West of Suez, Mediterranean/East LR2’s on TC15 saw a welcome improvement and the index rose just under 10% to US$4,240,000.
LR1
In the MEG, LR1’s have also suffered a sharp cut in freight levels this week. The 55kt MEG/Japan index of TC5 went from WS215.94 to WS188.75. Likewise, on the 65kt MEG/UK-Continent of TC8 lost circa US$514,000 to US$4,730,000.
On the UK-Continent, the 60Kt ARA/West Africa TC16 index readjusted upwards to around the WS145 level where it rests for the moment.
MR
MR’s in the MEG held on to enough activity to keep rates from really sliding. The 35kt MEG/East Africa TC17 index, as a result, lost an incremental 8.57 points to WS239.29.
UK-Continent MR’s began to optimistically push back up this week. The 37kt ARA/US-Atlantic coast of TC2 hopped up 20 points to WS199.06. TC19 (37kt ARA/West Africa) as usual mirrored this and is currently pegged at WS219 (+20). These improvements have taken the round trip TCE’s back into the mid/high-twenties of thousands of dollars per day.
The USG MR’s after having managed to climb from the WS140’s to WS225’s (TC14) began on of their usual downward tracts this week. Within the week TC14 (38kt US-Gulf/UK-Continent) went from WS170 to WS225 and back down to WS170 where it currently lies.
The 38kt US-Gulf/Brazil TC18 run has followed the same pattern going from WS250 to WS300 and now back to WS250. A 38kt US-Gulf/Caribbean TC21 run peaked at US$1,190,000 mid-week but returned back down to US$771,000 by end of the week.
The MR Atlantic Triangulation Basket TCE peaked mid-week around the US$44,000 mark but is now back at US$36,651.
Handymax
In the Mediterranean, Handymax’s dropped back this week TC6 30kt Cross-Med index deflated 42.78 points to WS203.89.
Up in northwest Europe, the TC23 30kt Cross UK-Continent managed to climb 15 points up to WS185.
VLCC
The market held relatively steady this week with enough enquiry to maintain rates. The 270,000mt Middle East Gulf to China trip rose half a point to WS46.9 corresponding to a daily round-trip TCE of US$23,262 basis the Baltic Exchange’s vessel description. The 280,000mt Middle East Gulf to US Gulf trip (via the cape/cape routing) is also now assessed +0.65 points at WS47.85.
In the Atlantic market, while the rate for 260,000mt West Africa/China dipped 0.64 points to WS52.33 (which shows a round voyage TCE of US$29,684/day), the rate for 270,000mt US Gulf/China is also US$130,000 softer at US$7,215,000 (US$31,528/day round trip TCE).
Suezmax
Suezmaxes in West Africa softened this week with activity being notably light. The rate for 130,000mt Nigeria/UK Continent went from WS99.17 to WS94.89 (a daily round-trip TCE of US$34,229). In the Mediterranean and Black Sea region the 135,000mt CPC/Med route, came down 13.2 points to WS105, following a widely reported fixture at that level (showing a daily TCE US$35,925 round-trip). In the Middle East, the rate for 140,000mt Middle East Gulf to the Mediterranean eased by just under four points to around WS88.7.
Aframax
In the North Sea, the rate for the 80,000mt Cross-UK Continent route rocketed another 40 points to WS213.57 (showing a round-trip daily TCE of US$103,055 basis Hound Point to Wilhelmshaven). In the Mediterranean market, the rate for 80,000mt Cross-Mediterranean firmed by another six points to WS220.28 (basis Ceyhan to Lavera showing a daily round trip TCE of US$79,117).
On the other side of the Atlantic, the trans-Atlantic market remained stagnant with the short haul voyages improving. The rate for 70,000mt East Coast Mexico/US Gulf is 33.13 points firmer than a week ago at WS235.63 (a daily round-trip TCE of US$69,181) and the 70,000mt Covenas/US Gulf rate climbed 30 points to WS222.5 (a round-trip TCE of US$57,658/day). Despite this the rate for the trans-Atlantic route of 70,000mt US Gulf/UK Continent didn’t budge from WS185 (a round trip TCE basis Houston/Rotterdam of US$43,960/day).
LNG
The beginning of the week was slow with few reported cargoes, after a partial shutdown in the Freeport facility due to the recent hurricane. Some ships are now sitting idle. Despite this lack of fixing in the Atlantic, the Pacific market begun to move and at the end of the week a cargo fixing in the market pushed rates up quite significantly.
For BLNG1 Aus-Japan on the 160cbm TFDE a rise of US$11,200 and a close of US$56,400 did well but the modern 2-stroke 174cbm fared better with a rise of US$14,100 and final publication at US$70,200 the fixture that drove the rise has widened the delta between the two ships now to US$13,800 up US$3,000 from last week.
As the Atlantic was quieter and the partial shutdown in Freeport persists, rates took a slight fall and BLNG2 Houston-Cont lost US$8,900 on the 174cbm 2-stokes to a close of US$78,800 while the TFDE 160cbm finished down US$7,100 at US$60,900. The Houston-Japan BLNG3 was flatter but both ships finished down at US$93,00 and US$78,800 on the 174cbm and 160cbm respectively.
Period was muted, little change kept rates flat, the 6-month term is up US$100 at US$103,000, 1-year terms up US$34 at US$83,867 while 3-year was flat at US$84,000.
LPG
The summer has fully kicked in now with a quiet week overall for LPG. Rates have fallen, although at a slower pace than recent weeks and without as much of a drastic drop as well. Out in the MEG for BLPG1 Ras Tanura-Chiba a fall of US$3.857 gave a final publication price of US$52.429 and a daily TCE earning equivalent of US$31,119. There was a recent release of acceptances and although we have yet to see anything materialise, there ought to be some August fixing coming up in the new week.
The Atlantic market this week held sway showing around four of the reported seven total fixtures, rates did not fare much better than out in the MEG. For BLPG2 Houston-Flushing, some brokers reported very low rates being bid, but offers held out and rates fell by US$2.1 only to a close of US$49.9 and a daily TCE earning of US$43,229. The BLPG3 Houston-Chiba dropped US$2 and a close of US$91.857 and a TCE earning of US$28,538 will probably have many looking forward to the weekend.
