The market showed variability over the past week, as most routes were active yet sentiment differed from region to region. The Pacific market largely softened on the back of an inactive West Australian market.
Baltic Exchange Dry Index (BDI) curve 24 June - 28 June
Capesize
The market showed variability over the past week, as most routes were active yet sentiment differed from region to region. The Pacific market largely softened on the back of an inactive West Australian market. Charterers were usually able to achieve lower than last done, albeit with minimal trade volumes heard. Several trades on Asian vessels for Brazil rounds were heard at healthy levels, which highlighted the options owners now have to choose from. Further west, Brazil to China voyage rates initially maintained their level before being seen to soften towards the end of the week. The North Atlantic was an animal of its own, as consecutively higher fronthaul fixtures were heard throughout the week. Many of these stemmed from the Black Sea, which, while at a higher headline rate, were largely viewed lower on the case of being a shorter duration back to the East. The C5TC opened the week at $17,947 to close Friday at $19,360. The West Australian C5 market opened the week at $7.45 to close the week out at $7.205.
Baltic Exchange Capesize Index (BCI) curve 24 June - 28 June
Panamax
It was a strong week in the Atlantic with sources commenting they had rarely seen so few available ships on early positions. The index increased over $2,500 during the week for transatlantic rounds, with a modern Kamsarmax agreeing $12,500 for a round, admittedly from a good delivery in Aughinish, via the US East Coast to Jorf Lasfar. Fronthaul rates also increased by over $1,500 on the week before, with a modern Kamsarmax fixed at $19,000 delivery Gibraltar for a long trip via the US Gulf and the Cape of Good Hope to the East. Several vessels were also fixed basis delivery dropping outward pilot station (DOP) India for trips via South America, again, with a Panamax/Kamsarmax fixed at $12,000/$13,000 respectively. There was less excitement in the East, but rates also rose with the improved market sentiment. A newbuilding Kamsarmax ex-yard was reported fixed for one year at $12,250. The same charterer was later linked to another modern Kamsarmax in direct continuation at $12,200.
Baltic Exchange Panamax Index (BPI) curve 24 June - 28 June
Supramax/Ultramax
Positive sentiment remained across all areas as the week ended. On the period front, brokers said that a few Ultramaxes were fixed at $11,000 for four to six months Atlantic trading. The Atlantic saw gains and stronger numbers being discussed. From the East Mediterranean, a 63,000dwt vessel fixed at $19,000 with redelivery Indian Ocean. There were better levels from the US Gulf, with a 58,000dwt ship fixing for a trip to Japan at $19,000. East Coast South America was also strengthening, with Ultramaxes seeing in the $14,000s, plus $400,000s ballast bonus, for trips to Singapore-Japan. The Asian basin also gained momentum. For North Pacific round voyages, 60,000dwt vessels were seeing in the mid $8,000s. From Southeast Asia more coal was entering the market. A 56,000-tonner open Hong Kong fixed a trip via Indonesia, redelivery North China, at $8,500. Activity remained from the Indian Ocean, a 52,000dwt ship covering basis delivery for a Cape Town trip, via Saldanha Bay, to Singapore-Japan at $12,250 plus $225,000 ballast bonus.
Baltic Exchange Supramax Index (BSI) curve 24 June – 28 June
Handysize
The Baltic Handysize Index (BHSI) was largely flat this week with gains mainly from the Atlantic basin. More period fixtures were reported, with two 39,000dwt ships reportedly fixing at $11,000 basis delivery Tampico and Świnoujście respectively and both redelivery within the Atlantic. A 36,000-tonner open New Orleans in early July was fixed for three to five months at $11,000, also with Atlantic redelivery. From East Coast South America, a 28,000-dwt was fixed for a trip to North Coast South America at $8,500. A large Handysize vessel, open Immingham, was fixed to the US Gulf at $8,500 for the first 40 days and $10,500 thereafter. In the East, rates were stable but not showing any further sign of improvement. A 38,000dwt ship, open spot in Hong Kong, was fixed at $9,000 basis passing Singapore for loading salt via West Australia to Japan. A 32,000dwt ship, open Portland, was booked to run via New Zealand to West Coast India at $8,000 plus a ballast bonus of $13,500.
Baltic Exchange Handysize Index (BHSI) curve 24 June - 28 June
Tanker market report
VLCC
Although Middle East tensions remain, owners and charterers have picked up fixing volume, including on older and ‘compromised’ tonnage, but the market has eased slightly. 270,000mt Middle East Gulf/China now rests at WS 50-51 level. 280,000mt Middle East Gulf/US Gulf basis Cape/Cape is rated at WS 21-22 region. 260,000mt West Arica/China has come under pressure, dropping a few points to WS 48, while 270,000mt US Gulf/China has also fallen to $5.7m level.
Suezmax
Rates for 130,000mt West Africa/UK Continent came under further pressure this week, bottoming out just below WS 60, before bouncing back to WS 65 level at the time of writing. 135,000mt Black Sea/Mediterranean lost around WS 5 points over the week, now being rated at WS 77.5 region, despite limited known volume. In the Middle East, owners continued to come under pressure, 140,000mt Basrah/Mediterranean falling from WS 45 to WS 39.
Aframax
Owners put Charterers under pressure this week in the Mediterranean, lifting the market for 80,000mt Ceyhan/Mediterranean to WS 105, up around WS 20 points week-on-week. Meanwhile 80,000mt Cross-North Sea remained static at WS 87.5. 100,000mt Baltic/UK Continent continues in the low WS 60s.
Clean
The Middle East Gulf clean market was slightly weaker this week. 75,000mt Middle East Gulf/Japan sits at WS97.5. 55,000mt Arabian Gulf/Japan fell a couple of points to WS 110. Again, the better-performing markets this week were in the Atlantic. After an explosion and fire at a refinery in Philadelphia, and its subsequent closure reducing local gasoline production just in time for the USA driving season, the market for 37,000mt Continent/US Atlantic Coast climbed from the mid-WS 120s to WS 160 level, before easing back to WS 135 region. 38,000mt US Gulf/UK Continent gained another WS 5 points to end the week at WS 105.