BEIJING, July 31 (Xinhua) -- The Baltic Exchange has published its weekly report of the dry and tanker markets for July 24-28, 2023 as below:
Capesize
After a slow beginning to the week, the Capesize market experienced a surge on Wednesday with a rise of over $2,500 in a day on its five timecharter routes average. The week closed at $15,180 with +$3,222 week-on-week. Both fronthaul and trans-Atlantic business were particularly active whilst tonnage in the Atlantic tightened. Solid volume lent support and made the North Atlantic the strongest sector of the week. By Friday, vessels delivered in the Continent/Mediterranean were paid close to $36,000 for runs to the Far East. From Brazil, moving iron ore to China was marked in the mid $19s for second half August loading. In the Pacific, the West Australia to Qingdao trade remained stable throughout the week at the level of $7.70. Currently both a trans-Pacific and a China to Brazil round voyage are in the $12,000s per day.
Panamax
It was an eventful week with the Panamax market finally finding some life. The week began slowly, but eventually sparked and was duly accompanied by an FFA drive/some Cape splits in parts only to flatten out as the week ended. In the Atlantic, some much needed mineral demand was evident alongside solid demand ex South America for mid/end August arrival window. 82,000dwt types delivery Singapore were now achieving somewhere between $10,500 and $11,000 date dependent. Further north, an 82,000dwt delivery Continent achieved $7,500 for a trans-Atlantic round trip via US East Coast. In Asia, rates improved marginally, buoyed somewhat by the pick-up in South America, but decent levels of Australian coal provided the support for most part of the week and a small smattering of NoPac enquiry mid-week, but pitted against a lengthy tonnage list rates hovered around the $6,000 mark for Australian mineral round trips.
Ultramax/Supramax
Another rather unexciting week for the sector, certainly from the Atlantic, which saw further drops with limited fresh impetus across most areas with the ongoing Summertime slow down. The US Gulf was described as positional whilst the South Atlantic had positional opportunities for owners with prompt vessels, although it did remain fairly uneventful. A 55,000dwt was heard fixed delivery Recalada for a trip to the East Mediterranean at $14,000. In the US Gulf, a 58,000dwt was heard to have fixed from SW Pass to the Mediterranean at $9,000. From Asia, stronger enquiry was seen in the south at the beginning of the week and with the recent bad weather some vessels where delayed, which kept levels at a reasonable level. Further north, some saw demand remain for backhaul enquiry but limited fresh enquiry was seen from the NoPac. A newbuilding 64,000dwt open Japan fixed a trip to Brazil in the high $7,000s. Further south, a 63,000dwt fixed delivery Koh Si Chang via Indonesia redelivery China at $9,000.
Handysize
Limited enquiry in the South Atlantic has led to ever growing tonnage availability. A 32,000dwt was fixed basis delivery Recalada for a trip to the US East Coast with an intended cargo of sugar and duration of about 50 days at $9,000. The US Gulf was also suffering similar issues with limited cargo availability. A 32,000dwt was fixed from SW Pass to Israel with an intended cargo of grains at $5,000 and a 38,000dwt fixed from Barranquilla to China with an intended cargo of coal at $10,000. In Asia, a 34,000dwt opening in Koh Si Chang was fixed for a trip via Kijing to Samalaju with an intended cargo of alumina at $4,750 and a 37,000dwt was fixed from Papa New Guinea via Australia for a round voyage at around $10,000 with an intended cargo of concentrates whilst a 36,000dwt open in Japan was linked to fixing for a round trip via Australia in the upper $5,000s.
Clean
The BCTI finished the week at 671, up from 610 the previous week.
In the Middle East Gulf freight rates for LR’s have strengthened with TC1 75k Middle East Gulf / Japan, increasing from WS90.28 to finish the week at WS130.17 (+WS39.89), a round trip TCE of $26,757/day. This has had a knock-on effect on MRs with TC17, 35kt Middle East Gulf / East Africa, showing similar gains, resulting in an increase of WS46.43 points to WS255 and a round trip TCE of $29,776/day.
The LR1's of TC16 60k Amsterdam / Offshore Lomé steadily increased over the course of the week, gaining +WS3.43 points to finish at WS114.06.
West of Suez, on the LR2's, TC15, 80k Mediterranean / Japan, were mostly flat ending the week at $2,391,667.
LR1's have also seen a similar gains over the last week with TC5, 55k Middle East Gulf / Japan, steadily increasing WS37.19 to WS138.75. On TC8 Middle East Gulf / UK-Continent rates softened throughout finishing at 43.30 $/mt (a lumpsum equivalent of $2.8m).
Rates for MRs in the US have continued the volatility seen since the beginning of the year, starting off at WS138.33 for TC14 38k US Gulf / UK-Continent, reaching a peak around WS151.25 at the end of the week. TC18 the MR US Gulf / Brazil followed TC14 to end the week at WS228.75 (+7.08). TC21, MR US Gulf / Caribbean, started the week at $787,500 increasing and peaking at $945,833 (+$158,333).
On the UK-Continent, MRs freight levels have been steadily increasing with TC2, 37k UK-Continent / US Atlantic Coast, finishing the week at WS172.75 (+WS13). TC19, 37k Amsterdam to Lagos, followed suit and finished at WS182.5 (+WS13.12).
VLCC
The market in the Middle East softened this week, mostly seen in the earnings rather than fixing rates, while the Atlantic markets gained a little. In the Middle East, the rate for 270,000 mt Middle East Gulf to China yesterday was assessed at WS51.33, a week-on-week drop of 0.7 points, although the daily round-trip TCE of $27,800 basis the Baltic Exchange’s vessel description is $3,200 lower than last Friday). The 280,000 mt Middle East Gulf to US Gulf trip (via the cape/cape routing) remained flat in the WS32-32.5 range.
In the Atlantic market, the 260,000 mt West Africa/China rate remained steady around the WS53 mark (which shows a round voyage TCE of $31,300/day, which is about $2,000 lower week-on-week). The rate for 270,000 mt US Gulf/China has continued firming and is $461,111 more than last Friday at $8,244,444 (about $33,200/day round trip TCE).
Suezmax
Suezmaxes in West Africa have had another poor week with rates still dropping. For 130,000 mt Nigeria/Rotterdam rates lost another 11 points to settle a little below WS72.5 (a daily round-trip TCE of $18,300). In the 135,000 mt CPC/Med market, rates are down again, losing a further four points to just above WS90 (showing a daily TCE of $24,800 round-trip). In the Middle East, the rate for 140,000 mt Basrah/Lavera gained a point to almost WS60.
Aframax
In the North Sea, the rate for the 80,000 mt Hound Point/Wilhelmshaven faced a reset in the market and is now assessed 15 points down over the course of the week to WS120.36 (showing a round-trip daily TCE of $24,100). In the Mediterranean, the rate for 80,000 mt Ceyhan/Lavera is also on a downward trajectory, losing 16 points since last Friday to WS104 (a daily round trip TCE of $16,100).
Across the Atlantic, in the Stateside Aframax market, rates are tumbling once again. The rate for 70,000 mt East Coast Mexico/US Gulf collapsed 45 points to WS134.69 (which shows a TCE of $25,700/day round trip) and for 70,000 mt Covenas/US Gulf the rate has tumbled 38 points to WS127.5 (a round-trip TCE of $22,400/day). The rate for the trans-Atlantic route of 70,000 mt US Gulf/Rotterdam has been chopped by 37 points to WS123.13 (a round trip TCE of close to $22,400 per day).
LNG
The LNG spot index has not shown much sign of life this last week. Rates are flat while there remains little to no firm spot enquiry. It is summer and expectations were that levels would stagnate. As we look to cargoes being quoted in late September laycans, eyes are once again drawn to the upcoming winter months and what they might bring. It was reported this week by one broker that while term rates have remained steady but high, there has been plenty of interest at inflated levels (vs. spot/multi-month pricing) expectations are that we will once again see the winter spike that we experienced last year. With charterers and traders planning ahead, any potential cargo/stem uncovered or opening up due to a lack of available programmed tonnage could face steep spot rates; something players who have taken tonnage on recently are hoping is the case.
For the actual index minimal changes moved the rates a few hundred dollars only. BLNG1g Aus-Japan fell by $134 to close at $68,752, gaining a little back having fallen more than $500 by midweek. On the Atlantic routes, BLNG2g lost nearly $750 to finish at $69,545 while looking east BLNG3g US-Japan rose marginally to close up at $88,209 having fallen below $88k mid-week.
LPG
A very quiet week overall where a lack of much enquiry has pushed rates down across all three routes, but it is in the Far East that the greatest fall occurred shaving nearly $9 off the week’s starting to close at $99 for Ras Tanura-Chiba. This gives a TCE daily earning of $83,950 which, though over $10k off from the start of the week, is still quite healthy earnings for the summer market.
Out in the US rates were steadier. A lack of much enquiry and little change on tonnage availability kept things hovering around the status quo. On our BLPG2 run Houston-Flushing rates fell marginally to close at $100.2 (a fall of 60 cents from the start of the week). This gives a daily TCE earning of $114,765. On BLPG3 Houston-Chiba sentiment pushed rates down but not enough to go below $170. We closed the week at $170.714 (a fall of $1.5) and a daily TCE earning of $94,147 round trip.
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 July 28, 2022 to July 28, 2023
Baltic Forward Assessment for BDI
In March 2018 the BDI was re-weighted and is published using the following ratios of time charter 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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