BEIJING, Jan. 25 (Xinhua) -- The Baltic Exchange has published its weekly report of the dry and tanker markets for January 18-22, 2021 as below:
Capesize
The Capesize market rocked and rolled these past few days. But by the weekend, little had changed on the Capesize 5TC as it settled down 884 to $24,631. This was an increase of $733 to the beginning of the week. The market has seen plenty of activity as the Atlantic Basin continues to maintain a strong positive sentiment with the Transatlantic C8 sitting at $36,425 against the Transpacific C10 at $17,133. Hampering logistics efforts in the Pacific had Cyclone Lucas kicked off the cyclone season in the North-West Australia region. The West Australia to China C5 had a decline in value this week of 0.941 to settle at $7.873. The activity out of Brazil has been tense with a standoff between charterers and owners breaking now slightly to the downside. The Brazil to China C3 now trades at $19.245. Period activity has been ticking over at a healthy level as the strong case for this year continues to hold.
Panamax
The week began sedately across the board with markets attempting to find direction. Downward pressure came initially from falling FFA values and a lack of demand early in the week forcing some cheaper levels to be conceded by owners. In the North Atlantic, trades involving breaching INL and forcing ice commanded premium numbers. And with continued tonnage tightness in the north, rates held firm for large parts. Asia trading ticked over with rates relatively steady all week. But all the talk midweek was focused on South America with a very active couple of days. On Wednesday and particularly Thursday there was talk of at least 20 ships fixed as market protagonists booked cover for the end February/early March loading windows. Period activity included an 82,000dwt delivery China for five to eight months at $14,000 and an 82,000dwt delivery North China agreeing $13,500 for 12 months employment.
Ultramax/Supramax
Yet another positive week for the sector, which saw increased demand across all basins. Increasingly, charterers are seeking period cover. A 58,000dwt open China fixing at around $13,000 for six to nine months trading and an Ultramax size scrubber fitted fixing in the $14,000s. From the Atlantic, east coast South America remained active with a 58,000dwt covering a trip to Bangladesh at $15,000 plus $500,000. Continent – Mediterranean areas also remained firm with Ultra’s seeing in the mid $13,000s for trips to South America. From Asia again the market remained firm. A 61,000dwt open Japan fixing at $13,000 for a north Pacific round voyage and a 56,000dwt open north China fixing a trip to south east Asia at $9,250. The Indian Ocean saw increased activity with a 58,000dwt fixing a trip from South Africa to China at $13,500 plus $350,000 ballast bonus. Meanwhile, a 53,000dwt fixed a trip delivery west coast India via Arabian Gulf redelivery Bangladesh at $14,000.
Handysize
Both the overall index and the time charter average landed in positive territory this week. Key markets in the Atlantic gradually improved throughout the week. Trading became more active since midweek including some period deals concluded. From east coast South America, a 34,000dwt and a 38,000dwt both delivery Santos were fixed for a trip to Morocco at $13,500 and $14,250 respectively. A 38,000dwt open in the US Gulf was fixed for moving petcoke to the Mediterranean in the $17,000s after she was failed on subjects for a trip to Algeria at $17,500 early of the week. Meanwhile, rates also climbed further in the Pacific as expected. Brokers suggested the tonnage count declined, especially in the Far East, whilst bad weather continued causing delays. A 33,000dwt delivery Japan was fixed for a NoPac grain trip to the Republic of Korea at $10,500.
VLCC
The market weakened even further this week with rates dropping and the timecharter equivalent for the main front haul voyages heading towards, if not actually realizing, negative returns. In the Middle East 280,000mt to US Gulf via the Cape/Cape routing is assessed another point down at WS18, whilst 270,000mt to China is rated a further four points lower than last week at just below WS30 (which translates into a timecharter equivalent of -$800/day). In the Atlantic, rates for 260,000mt West Africa to China fell two points this week to WS31 (about $1,650 per day). For voyages of 270,000mt US Gulf to China the market dropped another $100k to just below $4.2m, which corresponds to daily earnings of about $8,000/day basis a round voyage.
Suezmax
In the 135,000mt Black Sea/Med market we saw rates climb five points to WS63 (a timecharter equivalent of about $1,400/day). The West African market saw the biggest increase where 130,000mt Nigeria/UK Continent rates to WS57.5 (about $7,000 per day), up almost 20 points week-on-week. In the Middle East, the market for 140,000mt Basrah/Med voyages rose 6.5 points to WS18.5.
Aframax
Rates for 80,000mt Ceyhan/Lavera were 2.5 points higher this week at WS72.5 level. In Northern Europe, rates for voyages of 80,000mt cross-North Sea dipped a point to WS77.5, while 100,000mt Baltic/UK-Continent saw a drop of three points to WS60 (about $2,500 per day). On the other side of the Atlantic, owners fared better than the previous week with rates for 70,000mt Carib to US Gulf recovering seven points to the high WS80s (about $4,100 per day) and in the 70,000mt US Gulf to UK Continent market rates firmed six points to low WS70s.
Clean
In the Middle East Gulf/Japan trade, the pressure has continued to build with limited enquiry. Owners have seen rates eroded further on both the LR routes with 75,000mt to Japan easing almost five points to around WS77.5. Meanwhile, in the 55,000mt trade, the market sits now in the mid WS70s having begun the week in the low WS80S. In the 35,000mt AG/East Africa trade, the start of the week saw rates read just down six points to WS165. They have continued to soften with the market now hovering at around WS160 level. For owners plying the 37,000 Cont/USAC market, levels stabilized at WS110, with a Brofjorden load covered at WS115. The backhaul trade of 38,000mt from US Gulf to UK/Continent saw rates soften 2.5 points back down to WS80, while the 38,000mt US Gulf to Brazil run is now at WS120 level representing a similar small loss of 2.5 points. In the 30,000mt cross-Mediterranean trade, owners again saw a firming market with weather delays contributing to a tighter position list. There was increased activity from East Med with WS160 done a couple of times from Greece - up from WS115 at the beginning of the week. WS185 is on subjects from Black Sea for early February loading.
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 Jan.23, 2020 to Jan. 22, 2021
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)
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