THE BALTIC Dry Index increased this past week to 1495 on Friday 8 November
Capesize
The Capesize market experienced steady improvement this week, supported by robust demand and active trading in both the Atlantic and Pacific basins. Starting the week on a stable note, the BCI 5TC index rose gradually from US$15,332 on Monday to close at US$19,210 by Friday. In the Pacific, consistent activity from the miners and the operators, combined with weather-related delays, fuelled rate increases. The C5 index climbed from US$8.820 on Monday to settle at US$9.78 by Friday, as fixtures ranged from US$8.70 to US$9.80 later in the week. Meanwhile, the Atlantic basin also strengthened, especially from South Brazil, where a prominent miner’s demand helped lift the C3 index from US$20.380 on Monday to US$22.145 by weeks end. The North Atlantic markets saw significant support, with TA and fronthaul indices notably increasing, reflecting tight tonnage and an increase in volumes.
Panamax
With confined demand globally, it proved to be a challenging week for owners with a slow and steady erosion of rates in the Panamax market, culminating in the 5TC average losing further value. With limited action of note in the Atlantic, rates here came under the most pressure with charterers holding the upper hand, although delivery DOP was still evident several times for Transatlantic as tonnage count remained low. Fronthaul activity for mid-November arrival ex South America continued to be fixed basis APS&BB, US$14,000 + US$400,000 agreed on a couple of occasions, highlighting the negative market trend here. In Asia, decent specification 82,000-dwt types for trips via NoPac were able to achieve rates well into the US$11,000s during the early part of the week. However, with limited mineral trade, this had eroded down to rates in the US$10,000s as the week ended. Limited period activity but did include reports of an 82,000-dwt delivery China achieving US$16,900 basis 9/12 months.
Ultramax/Supramax
Another meagre week for the sector with very little encouragement from an owner’s perspective. The Atlantic continued to slide, as the South Atlantic, whilst seeing a reasonable amount of enquiry remained over supplied with tonnage, a 56,000-dwt fixing delivery Rio Grande trip to US East Coast in the low US$17,000s. From the North Atlantic little demand was seen. Again, rates remained under downward pressure. A Supramax was rumoured fixed from The US Gulf for a fronthaul at around US$18,000. The Continent-Mediterranean similarly lacked fresh impetus. As prompt tonnage availability remained healthy from the Asian arena, there was no end in sight to the downward trend, a Supramax open South Korea was heard to have been fixed for a NoPac round in the low US$10,000s. Limited enquiry further south saw a 63,000-dwt fixing from Indonesia to China at US$16,000. The Indian Ocean fared little better, a 63,000-dwt fixing a salt run from Kandla to China at US$12,000.
Handysize
It has been a challenging week for the sector, with rates in both the Atlantic and Pacific regions continuing to face downward pressure. In the Continent and Mediterranean, the overall sentiment remains stable, with fixtures emerging that suggest rates are holding steady at levels similar to the most recent deals. A 39,000-dwt open Amsterdam fixed for a trip via Murmansk to Brazil at US$13,000. In the U.S. Gulf and South Atlantic regions, sentiment remained soft in general with the increase in available tonnage and limited activity which has kept pressure on rates. A 39,000-dwt heard fixed delivery Houston 10/15 Nov for a trip to Egypt Med with grains at US$16.500. And a 37,000-dwt open Paranagua fixed delivery Recalada to South Africa with grains at US$17,000. The Pacific market also remained under pressure; rates were generally dipping below previous levels across the region. A 39,000-dwt open Fremantle 13-16 Nov fixed trip via Kwinana to Cigading with wheat at US$17,500. In the period market, a 38,000-dwt open Casablanca fixed for 4-6 months redelivery WW at US$13,750.
Clean
LR2
Tonnage has remained plentiful for MEG LR2’s this week. As a result, we have seen TC1 75kt MEG/Japan drop to less the WS100 for the first time since July 2023, with index dropping 8.61 points WS95.83. The TC20 90kt MEG/UK-Continent came down US$262,500 to US$3.49m where its looks to have plateaued for the moment.
West of Suez, Mediterranean/East LR2 freight dipped a little this week. TC15 is currently marked at US$2.85m (-US$127,083).
LR1
In the MEG, LR1’s have followed the same path of their larger counterparts in the region. The TC5 55kt MEG/Japan index lost 16.56 points to WS105, and on a trip west on TC8 65kt MEG/UK-Continent fell from US$3.21m to US$2.87m.
On the UK- Continent, TC16 remained flat with the index assessed around WS111 all week.
MR
MEG MR’s also saw their freight levels hold this week. Subsequently, the TC17 index looked to have reached a floor for the moment the index sat at WS170 all week.
UK-Continent MR’s managed to hold on to levels despite limited activity. The TC2 37kt ARA/US-Atlantic coast index remained level around the WS85 and the delta to expanded as the TC19 37kt ARA/West Africa index ticked up 10.93 points to WS125.31.
USG MR’s lost a little steam this week and vessels continued to ballast into the region. TC14 shed 11.78 to WS167.86. TC18 also came down to WS217.14, down 12.15 points from this time last week. TC21 dipped 17% or US$107,000 to US$655,000.
The MR Atlantic Triangulation Basket TCE climbed from US$24,451 to US$22,939.
Handymax
Mediterranean Handymax’s came off for the second week on week seen in the TC6 index going from WS141.94 to WS117.78.
Up on the UK-Continent, TC23 dropped another 11.67 points this week to WS116.39.
VLCC
The VLCC market lost ground again this week. The 270,000 mt Middle East Gulf to China (TD3C) trip is now 6 points lower than a week ago at WS47.05, which gives a daily round-trip TCE of US$24,373 basis the Baltic Exchange’s vessel description.
In the Atlantic market, the rate for 260,000 mt West Africa/China (TD15) has been reduced by 3 points to WS50.78 (corresponding to a round voyage TCE of US$29,004 per day), and the rate for 270,000 mt US Gulf/China (TD22) dropped by another US$187,500 to US$7,562,500 (a daily round trip TCE of US$35,108).
Suezmax
Suezmax rates have struggled again this week. In West Africa, the 130,000 mt Nigeria/UK Continent voyage (TD20) fell by 9 points to WS85.44, meaning a daily round-trip TCE of US$29,866. The TD27 route (Guyana to UK Continent basis 130,000 mt), dropped by 6 points to WS85.25, which translates into a daily round trip TCE of US$29,478 basis discharge in Rotterdam. For the TD6 route of 135,000 mt CPC/Med, another 6 points were extracted from owners to settle the end of the week at WS96.75 (showing a daily TCE of US$31,200 round-trip). In the Middle East, the rate for the TD23 route of 140,000 mt Middle East Gulf to the Mediterranean (via the Suez Canal) is assessed 4 points lower than a week ago, at WS93.11.
Aframax
In the North Sea, the rate for the 80,000 mt Cross-UK Continent (TD7) fell about 3 points to WS125 (giving a daily round-trip TCE of a little over US$28,100 basis Hound Point to Wilhelmshaven).
In the Mediterranean market the rate for 80,000 mt Cross-Mediterranean (TD19) has steadied and settled at the WS121.5 mark (basis Ceyhan to Lavera, that shows a daily round trip TCE of about US$25,730).
Across the Atlantic, the market spent yet another week in decline. Rates for the 70,000 mt East Coast Mexico/US Gulf (TD26) route and the 70,000 mt Covenas/US Gulf (TD9) route fell 11-12.5 points each to the WS132 level, showing a daily round-trip TCE of about US$23,800 and US$25,400, respectively. The rate for the trans-Atlantic route of 70,000 mt US Gulf/UK Continent (TD25) dumped 26 points to WS133.89 (a round trip TCE basis Houston/Rotterdam of US$27,248 per day).
LNG
There has been continued downward pressure on the LNG spot market in the East. The limited demand for fixing has been overshadowed by falling rates, and with several enquiries being sold on a FOB basis, there are fewer stems for ships to bid against. Rates on the 174cbm 2-stroke BLNG1 Aus-Japan route lost US$2814 down to US$32,400, while the 160cbm TFDE ship index fell by US$3009 and closed at US$21,500.
The Baltic BLNG2 Houston-Cont has been relatively active. There have been discussions on both 174cbm and 160cbm ships, but rates have still been moving south. With the 174cbm 2-stroke ships now moving up to US$20,100, there seems to have been a bottom hit, and owners are beginning to push back on levels. The 160cbm TFDE ship is still hovering in the low teens with a final publication of US$12,600 down US$700 on the week.
BLNG3 Houston-Japan saw a similar downward trend that BLNG1 had, and rates dropped by US$1624 on the 174cbm 2-stroke to US$31,300 while the 160cbm TFDE fared a little worse, moving down US$2636 to a close of US$20,400. All in all, the spot LNG market is not seeing the upward trend that is usually associated with winter, and with the Baltic BFA seeing trades for Cal25 and Cal26 at low levels, this pressure on rates looks to remain throughout next year as well.
Period remains flat with a few enquiries for 1-year and potential multi-month deals in the works, but all three Baltic periods dropped. Our 6-month period fell by US$5550 to US$33,800 while the 1-year fell to US$47,100. Our 3-year term closed at US$64,550.
LPG
There were few fixtures or negotiations taking place this week, and of those concluded one was already looking into the December fixing window. Our BLPG1 Ras Tanura-Chiba route dropped down by US$6.065 giving a final publication price of US$47.667 and a daily TCE earning equivalent of US$27,305.
While the US comes to grips with the recent election results, the market took a step back as well. With few reported fixtures and a tonnage list growing slowly, longer rates have remained steady, if flat. For BLPG3 Houston-Chiba a drop of 50 cents pushed the index down to US$98.333 giving TCE earning equivalent of US$33,686. BLPG2 Houston-Flushing moved down as well a little more by 75 cents, but with a published rate of US$55.25, there was little change in interest or sentiment. TCE Earnings were down by US$1836 giving US$52,494 per day.
