A weekly overview of the tanker and dry bulk market (October 14, 2022)

This report is produced by the Baltic Exchange.

The Baltic Exchange, a wholly owned subsidiary of Singapore Exchange, is the world’s only independent source of maritime market information for the trading and settlement of physical and derivative contracts.

Its international community of more than 650 members encompasses the majority of global maritime interests and is committed to a Baltic-monitored code of business conduct.

For daily freight market reports and assessments, please visit www.balticexchange.com.

Capesize

The Capesize market softened this week as a lack of fresh freight and activity, particularly in the Atlantic, hampered efforts to push higher. The Capesize 5TC fell 1909 during the week to settle at US$17,965. A slight rise in sentiment at the end of the week could be a sign of resistance from owners not to let rates fall. The Pacific market saw a flurry of encounters between Western Australia and China at the close, pushing the Transatlantic C10 to US$13,318, while the Transatlantic C8 still offers a healthy premium priced at US$25,139. US$. Brazilian trade activity to the Far East was one area that is expected to continue to slow. The C3
fell 1,434 during the week to US$23,233, with gains on route pricing slightly lower than in the Pacific and North Atlantic. Some owners considering a final long-haul ballast voyage before the end of the year will be faced with limited options in what has been a largely disappointing final quarter to date.

panamax

The week got off to a smooth start for Panamax vessels. Draft problems in the United States Gulf, as well as discussions of the slowing down of the Ukrainian Black Sea program, have had an impact on the North Atlantic. Meanwhile, in Asia, the week turned out to be rather flat. NoPac was perhaps the exception with a steady stream. As the week progressed, the Atlantic saw its tonnage build up slowly in most areas.

Without separate demand rates, he had to give – and duly obliged. US$19,000 concluded on a delivery of 82,000 dwt to northern Spain for a first transatlantic leg, but had since softened. Asia followed a similar trend. The south of the region saw a steady flow of Indonesian surveys, but offset by a significant number of tonnages. NoPac was active, but insufficient Australian demand ultimately proved to be the catalyst for further corrections in the market. A delivery of 86,000 dwt to China set at US$18,000 for a round to Australia, which characterizes the weaker market.

Ultramax/Supramax

Despite the return to work for many in Asia, the arena failed to gain positive momentum, with many seeing a lack of new inquiries in most regions and a rapid buildup in tonnage. However, the Atlantic saw better interest levels and rates remained positive overall. Period activity surfaced and a China open of 60,000 dwt set four to six month trades in the US$18,000 range. Meanwhile, for one year of trading, a Singapore open of 60,000 dwt was set at the upper US$16,000 / low US$17,000 region. From the Mediterranean, an Ultramax would have been repaired for a trip to West Africa in the upper US$20,000. From the Gulf of the United States, a 62,000 dwt set for a voyage to the west coast of Central America in the US$30,000 range. From Asia there was limited action. However, an open Japan of 62,000 dwt pegged a US Gulf voyage at US$16,000. From the Indian Ocean, a fixed voyage of 58,000 dwt on the west coast of India to China is around US$16,000.

Convenient size

Although BHSI made negative moves this week, part of the Atlantic showed a positive trend with a fixing of 43,000 dwt from the Black Sea to the mainland at US$23,000. Meanwhile, a 37,000 dwt was reportedly repaired for a voyage from the US Gulf to Spain with an expected cargo of Petcoke at US$23,500. On the east coast of South America, brokers spoke of a stable market and 39,000 dwt was fixed from Barcarana to the Caribbean with an expected cargo of grain at US$26,000. In Asia, figures had softened with an opening of 36,00 dwt in CJK placed on subjects for a voyage via Australia to Japan, with a cargo of sugar forecast at US$13,500. The period saw more inquiries and an opening of 30,000 dwt in the eastern Mediterranean was set for 12 months, with new worldwide delivery at US$13,750. An ex open drydock of 36,000 dwt has been secured for three to five months at US$18,000.

To clean

In the Middle East Gulf this week, early activity has seen rates start to climb. TC1 gained 26.87 points to WS196.25 and a westward trip on TC20 jumped over US$500,000 to end the week at US$4,283,333. The LR1s also showed some momentum; TC5 gained 20 points to WS191.43 and a westward trip fell from US$3,000,000 to around US$3,200,000.

AG MR also rallied significantly this week, with TC17 climbing to WS367.08 (+61.66).

West of Suez, LRs have been somewhat lackluster this week. Despite this, TC15 optimistically gained just under $100,000 to settle at $3,766,667. TC16 has been the personification of stability this week, staying at WS230 throughout. On the UK mainland, MRs picked up again this week, fueled by activity in North West Europe and the Baltic. TC2 was up 21.67 points at WS270 and similarly, TC19 was boosted to WS280.71 (+24.28).

In the US Gulf, the early activity appeared to be generating the same reaction we’ve seen recently in the region, with high volatility. The market then seemed to stall and reassess what was going to happen next. TC14 moved up from WS176 to WS206, then down to WS201 at the end of the week. Similarly, TC18 jumped from WS270 to WS305 and then back to WS300.

The MR Atlantic Triangulation Basket TCE gained US$5,495 from US$29,722 to US$35,667. On the Handymax, in the Mediterranean after a positive start on TC6 – and the index up more than 16 points – the market has stabilized for the moment at WS335. In the Baltic, TC9 has been steady around the WS382.5 level all week.

VLCC

VLCC rates have rallied again over the past week as Far Eastern market players return. For the 270,000 mt Middle East Gulf/China, trip fares increased by six points to around WS87.5 (a round trip TCE of around USD 47,800 per day). The rate for 280,000mt Middle East Gulf/USG (via Cape of Good Hope) gained two points to just above WS48.5.

In the Atlantic, rates for 260,000 mt West Africa/China improved by three points to nearly WS87 (USD 48,200 per day round trip TCE). For the 270,000 tonne US Gulf and China market, rates increased by a further US$325,000 to just over US$10,250,000 (showing a round trip TCE of $42,200 per day).

Suezmax

Rates for 135,000 tonnes of Black Sea/Augusta have also recovered, gaining 10 points from WS185 (a round trip TCE of $76,700 per day), with Shell indicating that it has a Greek-run vessel on topics to this level from CPC Terminal at this level. For the 130,000 mt Nigeria/UKC, trip rates returned to the highest level since the second half of April 2022, lifted nearly 22 points to WS146 (a round trip TCE of USD 45,300 per day). In the Middle East, the rate for 140,000 mt Basra/Western Mediterranean is assessed a few points above the WS65-W66 level.

Aframax

Rates in the Mediterranean market continued on an upward, albeit modest, trajectory this week, with the rate for 80,000 mt Ceyhan/Western Mediterranean improving a further three points to near WS225 (a round trip TCE of nearly $62,000 per day). In Northern Europe, rates are slightly firmer with 80,000mt Hound Point/UK Continent now priced four points higher week-on-week at just over WS204 (a daily round trip TCE of 65 $100 per day).

For the 100,000 mt Primorsk/UK Cont route, the fare is valued about one point higher than last week at WS224 (a round trip TCE of USD 71,660 per day, in line with last Friday).

Across the Atlantic, the market made steady gains this week with the rate for 70,000 mt EC Mexico/Gulf of the U.S. the US Caribbean/Gulf 70,000 tonnes improved 17 points to just over WS207.5 (a daily round trip TCE of $34,700). For the 70,000 mt US Gulf/British Mainland transatlantic route, the rate jumped 13 points to WS220 (showing almost US$40,300 per day round trip TCE).

Baltic Stock Exchange News

The Baltic Exchange organizes a series of professional training courses through its Academy. Where possible, these take place at major Expedition Centers but are also available as an e-learning option. The courses are designed to help executives in shipping, finance and commodities to deepen their knowledge of maritime markets. The courses are led by experts and provide high-level education, combining theory and concrete practical examples. See online for more details.

Disclaimer:

Although reasonable precautions have been taken by Baltic Exchange Information Services Limited (BEISL) and The Baltic Exchange (Asia) Pte. ltd. (BEA, and with BEISL being Baltic) in providing this information, all such information is for general use, provided without warranty or representation, is not intended to be used or relied on for any specific purpose, and does not infringe on the rights and legitimate interests of any third party, including intellectual property. The Baltic will not accept liability for any loss suffered in any way by anyone who seeks to rely on the information contained herein.

All intellectual property rights and related rights in this information are owned by Baltic. Any form of copying, distribution, extraction or reuse of this information by any means, electronic or otherwise, is expressly prohibited. People wishing to do so must first obtain a license to do so from the Baltic.