BEIJING, Dec. 14 (Xinhua) -- The Baltic Exchange has published its weekly report of the dry and tanker markets for December 7-11, 2020 as below:
Capesize
The Capesize market broke lower this week down to $10,295 on the 5TC taking it out of its recent range. After a positive end to the week the 5TC now resides at $11,889. Owners' focus looked to be dwelling on the reliable Pacific cargo flow as prospects further west looked to be dwindling. This situation has increased the pressure on Brazilian charterers who are still looking for tonnage, causing the route to find some renewed positive and robust sentiment coming into the end of the week. The Transatlantic C8 at $13,440 and the Transpacific C10 at $13,979 spread narrowed greatly by mid-week while the China-Brazil C14 continues to lag at a much lower $8,373. As talk of higher bids - and possibly higher fixtures - were rumoured on the Brazil to China C3 the route closed up 73 cents to price at $13.065. The West Australia to China C5 was quiet on market activity in the later parts of the week but it too seems caught up in the mild positivity of the other route to lift 23 cents today to settle at $6.991.
Panamax
A firm week in the Panamax market yielding solid rate gains for the owners. The North Atlantic, for the most part, was driven by the quick Baltic rounds with premium rates well in excess of $20,000 being concluded several times. This in turn hauled up rates for the longer rounds as owners looked for employment to tie them over and beyond the holiday period. Charterers duly obliging with deals agreed for laden legs and USG trans-Atlantic trips in the mid-teens. A similar picture emerged in Asia, with the Indonesia to China coal supply transpiring as a catalyst for firmer numbers on these trips and filtering into the longer Australia coal trips into Japan/India etc. A $17,000 figure being the headline rate on a nicely described 82,000dwt for an Indonesia to China run, whilst $13,000 emerged as the median rate for NoPac round trips as the immediate firm outlook continued to find support.
Ultramax/Supramax
The Supramax market witnessed something approaching a minor renaissance this week, with some brokers suggesting a tightening supply/demand dynamic, predominantly from the Continent, Black Sea and the US Gulf. The US Gulf fronthaul route proved to be a main beneficiary, gaining $400 on the week to close at $22,883. The African Flamingo (2018 63,926) was instructive – fixing to WBC for at $25,250 delivery APS for an early January position. The Pacific also remained active on Indonesia-China coal volumes, with the Kennadi (63,262 2016) securing $10,500 basis delivery CJK for a round. The firmer market naturally brought out some period interest – with Cargill lifting the Belmont (63,263 2016) for 11/13 months at $10,500 basis delivery Yosu. The timecharter average duly closed the week at $11,337, up $216, with brokers suggesting that the Atlantic, at least, looked well poised for further gains in the short-term.
Handysize
The movement in the Atlantic basin was not as sharp as previous weeks with mainly east coast South America and the US Gulf lending support to time charter average and BHSI. The improvement from east coast South America became more evident towards the second half of the week whilst the US Gulf remained steady throughout the week. A 37,000dwt delivery Imbituba was fixed for a trip via Plate to north Brazil at $14,000. A similar-sized vessel was fixed from Barranquilla for a trip to Tunisia at $15,000. In the Pacific, south east Asia and Australia region was described to be to be firm. Early in the week, an Imabari 28 open north China was fixed at $8,000 for two to three laden legs. A 34,000dwt open Chittagong spot was fixed for an Australia round voyage in the mid $8,000s. On the period front, a 38,000dwt was fixed from Altamira for a four to six months trading at $12,000 with redelivery in the Atlantic.
VLCC
Rates in this sector marginally improved then lost a little ground late in the week. In the Middle East 280,000mt to US Gulf via the Cape/Cape routing levelled at WS17.5, while 270,000mt to China rose a couple of points early on to nearly WS35 then eased to WS34 level.
In the Atlantic, rates eased overall as demonstrated by 260,000mt West Africa to China. This carried forward the recent momentum to WS37 at the beginning of the week, but latterly dipping to around WS35 whilst 270,000mt US Gulf to China climbed to about $4.76m on Monday but are now assessed at $4.72m level.
Suezmax
Rates for 135,000mt Black Sea/Med firmed five points to WS55, while a similar increase was seen in the 130,000mt Nigeria/UK Continent market to WS42 level. In the Middle East market, 140,000mt Basrah/Med voyages are now assessed three points lower at WS15, likely guided by a recent reported fixture of the Neptune Moon to Repsol at this level.
Aframax
Rates for 80,000mt Ceyhan/Lavera remained static at around the WS57.5-60 mark. And, in Northern Europe, voyages of 80,000mt cross-North Sea are being rated 2.5 points lower than a week ago at WS72. Meanwhile, 100,000mt Baltic/UKContinent assessments were flat at WS45 level. Across the Atlantic rates continued their downward trajectory with 70,000mt Carib to US Gulf now into the low WS50s - about 23 points lower week-on-week - and 70,000mt US Gulf to UK Continent falling a further 16 points to low WS40s.
Clean
The Middle East Gulf/Japan trade saw a reversal of fortune for the owners in the latter part 0f the week, with rates for 75,000mt climbing from mid WS60s to just over WS80. However, the LR1s fared better with rates here pushing up about 27 points to WS110. The MR market remained flat with rates for 35,000mt AG/East Africa holding around mid WS170s. In the Atlantic trade, the 37,000mt UKContinent/USAC route gained six points to WS82.5-85 region. The backhaul trip of 38,000ms from US Gulf to UKContinent, meanwhile, shed another four points to low WS40s. The 38,000mt US Gulf to Brazil run hovered around last week's level of WS65. In the 30,000mt cross-Mediterranean trade rates firmed from mid WS80s to low WS90s.
Headquartered in London and a subsidiary of the Singapore Exchange (SGX), the Baltic Exchange publishes a range of indices and assessments which provide an accurate and independent benchmark of the cost of transporting commodities and goods by sea. These include the Baltic Dry Index (BDI), the dry bulk shipping industry's best known indicator. Published daily since 1985, this provides a snapshot of the daily spot market earnings of capesize, panamax and supramax vessel types on the world's key trading routes.
Chart shows Baltic Dry Index (BDI) during Dec.12, 2019 to Dec.11, 2020
Baltic Forward Assessment for BDI
In March 2018 the BDI was re-weighted and is published using the following ratios of timecharter assessments: 40 percent capesize, 30 percent panamax and 30 percent supramax. The information is provided by a panel of international shipbrokers.
(Source: The Baltic Exchange, edited by Niu Huizhe with Xinhua Silk Road, niuhuizhe@xinhua.org)
A single purchase
