BEIJING, March 25 (Xinhua) -- The Baltic Exchange has published its weekly report of the dry and tanker markets for March 18-22, 2024 as below：
Capesize
Similar to last week, the Capesize started positively but it was soon paused. The Capesize 5TC struggled in the negative territory in the rest of the week, breaking the $30,000 threshold and eventually settling at $28,875 on Friday. After the cyclone across western Australia, C5, the west Australia to Qingdao trade continued its turbulent journey by reaching over $13 mid-week before ultimately closing at $12.171. C3, the Brazil to Qingdao trade hovered at the level of $30 but ultimately closed at $28.535. Atlantic round voyage and front haul runs both declined, but they are still about twice of the values compared with the second half of March last year, at $25,642 and $56,625 respectively.
Panamax
It proved to be a compelling week for the Panamax sector, where the Atlantic appeared to provide a positional divide with the north Atlantic tonnage under pressure due to a lack of demand. With $20,000 agreed for an 83,000dwt delivery NW Africa for a trip via NC South America redelivery Skaw-Gibraltar, rates now appeared sub $19,000 for the same criteria. Further south the seasonal steady flow of cargo from the Americas kept rates largely flat but appeared to be tapering off as the week ended as a wide bid/offer spread emerged with Charterers stepping back. Asia too saw steady declines as the week progressed with the north of the basin in particular coming under pressure, whilst further south some limited support lent by steady coal demand ex Indonesia along with grain supply emanating from South America. Plenty of period activity the headline rate being an 82,000dwt delivery Vietnam achieving $24,000 basis 6/8 months.
Ultramax/Supramax
A more positive affair for the sector overall with a strong amount of demand from the Atlantic outpacing the lower activity levels seen from the Asian arena, although there was seemingly a more robust feel from the Indian Ocean as the high levels seen in the south Atlantic saw vessels looking further afield. In the Atlantic, demand from the South America saw a 63,000dwt fixing a trip from South America to Singapore-Japan in the very low $20,000s plus low $1 million ballast bonus. For trans-Atlantic runs a 63,000dwt fixed again from South America to the Continent-Mediterranean at $27,000. From the US Gulf a 61,000dwt was heard to have been fixed for a trip to Japan at $27,000. From the Indian Ocean, a 61,000dwt fixed delivery Port Elizabeth redelivery Far East at $23,000 plus $230,000 ballast bonus. Whilst from Asia limited fresh enquiry from Indonesia saw a 60,000dwt fixing delivery China's Hong Kong trip via Indonesia redelivery South Korea at $15,000.
Handysize
The handy sector saw more visible activity in the Atlantic and levels seeing steady improvements. On the Continent, a 36,000dwt was linked to fixing from Grenaa via Rostock to Morocco at $17,250 whilst a 32,000dwt fixed from Hartlepool to the US Gulf at $13,300. The south Atlantic, continued to see a lack of available tonnage and a 32,000dwt was rumored to have fixed from Recalada to the Persian Gulf in the $20,000s. Also, a 37,000dwt fixed from Vitoria to Rotterdam at around $20,000 earlier in the week. More activity was also seen in the US Gulf and US east coast with a 38,000dwt fixing from Norfolk to the Continent at $11,000. The Pacific region had remained balanced in general with a 38,000dwt opening in China Qingdao fixing a trip to the Persian Gulf at $14,000, whilst a 37,000dwt fixed from China Yingkou's Bayuquan for an inter Far East trip in the $15,000s.
Clean
LR2
After reaching a ceiling LR rates began to drop this week in the MEG. After topping out a WS320 (up from WS278) the rate for 75kt MEG/Japan is currently pegged at WS313. The 90kt MEG/UK-Continent TC20 voyage similarly stopped climbing at $7.9 million to then resettle at $7.8 million.
West of Suez, Mediterranean/East LR2's improved modestly this week and the TC15 index went from $4.38 million to $4.41 million.
LR1
In the MEG, LR1's freight followed the pattern of the LR2's but not to the same magnitude. The 55kt MEG/Japan index of TC5 ultimately went from WS285 to WS311 peaking mid-week at WS318. The 65kt MEG/UK-Continent of TC8 hit a roof of $6 million this week (currently at $5.8 million) with the Baltic description TCE via Suez breaching $80,000 per day round trip.
On the UK-Continent, the 60kt ARA/West Africa stalled this week and fell, the TC16 index went from WS217 to WS211.
MR
MR's in the MEG also charged upwards this week. TC17 35kt MEG/East Africa shot up 59 points to WS421 (it currently sits at WS416) this took the Baltic round trip TCE for the trip to around $51,000 per day.
Up in the UK-Continent MR's came under pressure this week from charterers. The 37kt ARA/US-Atlantic coast of TC2 came down roughly in the same format as it went up last week, the index dropped from WS251 to WS206. On a TC19 run (37kt ARA/West Africa) the index followed suit and shed 48 points down to WS224 across the week.
Another week of ups and downs for the USG MR's this week. TC14 (38kt US-Gulf/UK-Continent) after a little ten point spike in to the mid WS190's is now back in the mid WS180's. The 38kt US Gulf/Brazil on TC18 hovered around the high WS270's to low WS280's and the 38kt US-Gulf/Caribbean of TC21 dropped by went from $878,000 to $900,000 and is back down at $871,000 at time of writing.
Handymax
In the Mediterranean, 30kt Cross Mediterranean (TC6) climbed circa 30 points to WS350 where it looks to have settled out.
Up in Northwest Europe, the TC23 30kt Cross UK-Continent improved modestly WS263 (+WS10).
VLCC
The market eased slightly this week in all regions. The rate for the 270,000 mt Middle East Gulf to China slipped 4 points to WS71.50 which corresponds to a daily round-trip TCE of $49,319 basis the Baltic Exchange's vessel description.
In the Atlantic market, the 260,000 mt West Africa/China route softened 3.5 points to WS72.40 showing a round voyage TCE of $50,562 per day The rate for 270,000 mt US Gulf/China dropped $77,778 since last Friday to $9,088,889 providing a round-trip daily TCE of $45,225.
Suezmax
Suezmaxes in West Africa were slightly firmer, with four points added to the 130,000 mt Nigeria/UK Continent voyage (a daily round-trip TCE of $39,400). In the Mediterranean and Black Sea region the rate for 135,000 mt CPC/Mediterranean remained flat at around the WS106.5-107 level (showing a daily TCE of around $36,000 round-trip). In the Middle East, the rate for 140,000 mt Middle East Gulf to the Mediterranean (via the Suez Canal) was assessed one point firmer at WS96.50, with the last done reported to be at WS67.5 via the Cape of Good Hope (due to the ongoing Red Sea issues which include a reported resurgence of Somali piracy).
Aframax
In the North Sea, the rate for the 80,000 mt Cross-UK Continent gained four points to WS143.57 (a daily round-trip TCE of $41,515 basis Hound Point to Wilhelmshaven).
In the Mediterranean market the rate for 80,000 mt Cross-Mediterranean has decreased by one point to WS172.39 (basis Ceyhan to Lavera, that shows a daily round trip TCE of $49,335).
Across the Atlantic, the Stateside market has tumbled comparatively. The rate for 70,000 mt east coast Mexico/US Gulf (TD26) fell 23 points to WS150.31 (a daily TCE of $29,772 round trip) and the rate for 70,000 mt Covenas/US Gulf (TD9) slumped by 22 points to WS146.56 (a round-trip TCE of $27,303 per day). The rate for the trans-Atlantic route of 70,000 mt US Gulf/UK Continent (TD25) shrank by 31 points to WS148.75 (a round trip TCE basis Houston/Rotterdam of $30,385 per day).
LNG
A relatively stable week for the LNG in terms of freight both the 174cbm and 160cbm indexes moved in unison with the Atlantic picking up on both BLNG2 and BLNG3 while in the Pacific levels fell. Looking to the East BLNG1 Aus-Japan fell by $3,117 for the 174 while the 160 dropped by $3,735 giving a final publication of $48,148 and $30,162 respectively.
In the Atlantic as rates continued to climb there were few reports of actual fixtures but enquires from the Mediterranean and Africa kept chins wagging, BLNG2 US-Continent rose by $2,515 for the 174 to give a close of $54,212 while the 160 gained $1,438 to finish at $50,427. BLNG3 US-Japan saw similar rises with the 174 up to a finish of $59,567 while the 160 crept up to $46,393. Deals for the US are mainly on round trip basis, in the Pacific there are reports both ballast bonus to hub and round trip are in play.
Period remains flat, though some reports of both multi-month and three-year period fixtures took place rates remain undisclosed. The Baltic assessments moved little with six months at $63,700 PD, the one year assessment fell to $76,967 while three year broke over $80k to $80,600.
LPG
A very quiet week in the AG for fixing, with one reported fixture by ATC at $78 at the start of the week sentiment fell off quite significantly since then with rates falling from the high of $79 to close at $66.857 (a drop of $12.143). Little enquiry and more ships looking at the lower earnings in the States might lengthen the tonnage list as well. TCE earnings for BLPG1 Ras Tanura-Chiba dropped by $13,296 to $46,347 daily equivalent.
Across the pond to the Atlantic marker there was not much else to say that hasn't been said on BLPG1. BLPG2 Houston-Flushing was very quiet with no reported fixtures and sentiment waning we closed down a total of $7.4 for a publication of $69.6. BLPG3 Houston-Chiba shared a pretty similar fate losing $12.857 to close down at $124.429 giving a TCE daily earning of $49,806, meaning that TCE earnings for the East and West delta remain very close and could affect tonnage availability in the US.
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 March 24, 2023 to March 22, 2024
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)
A single purchase
