Whilst the rate levels have come off during the week, there still seems to be a reasonable balance. For the west Australia to China run, the market has slipped to around US$7.50 from last
week’s levels in the low US$8s. Brazil to China has remained around the US$17.50 level with this rate fixed by SwissMarine on the Kyla
Fortune and the newcastlemax – Kachodoki achieving a similar rate from Cargill for a full cargo. Saldnaha Bay to Qingdao was
covered at US$12.80 basis 1.25% total commission with Pacific Bulk tonnage by Ore & Metals. There was some fronthaul activity as the Cape Istanbul fixed with U-Ming basis delivery
Passero 9 November for a trip via Kamsar to China at US$32,000, which is a shade less than last week’s levels. RWE’s vessel Vittoria,
180,025-dwt 2015-buit, fixed delivery Rotterdam for two-three laden legs with Atlantic redelivery at 122.5% of the Baltic Cape 5TC with SwissMarine.
The index continued its decline for the first half of the week, but has increased in the last two days, on the back of the rising Atlantic market. Tightening supply on the north Continent
and west Mediterranean combined with fresh demand pushed transatlantic rates up considerably in the past 24 hours and produced even more period interest. A 2017-built kamsarmax
which had fixed at $16,000 daily for four to seven months at the beginning of the week has reportedly been re-let now at US$17,250 daily. Front haul grains from the US Gulf have
been muted. However, levels remained steady and activity from east coast South America has increased slightly, although rates were relatively unchanged.
In the Pacific, the rates have slowly eased throughout the week rather than dropping dramatically, with good specification ships in premium positions still obtaining reasonable
levels. Kamsarmaxes and post-panamaxes have been more in demand on the mineral trades than the panamaxes, with their tonnage list growing and almost causing a two-tier market.
It has been a quiet end to the week due to a holiday in Japan and there has been far less period interest compared to the Atlantic with a 2005-built panamax fixing at US$12,750 daily for
five to seven months, representing a drop of approximately US$750 daily on a comparable fixture last week.
Very little was heard on the period market, an ultramax 63,000-dwt 2015-built open north China was said to have fixed for four to six months trading redelivery Middle East Gulf-Japan
range at US$12,000.
The Atlantic routes dropped across most areas, with the exception of the US Gulf, which bucked the trend as tonnage supply balanced out. A 57,000-dwt was fixed delivery Barranquilla via
north coast South America for a trip to the Continent at US$18,500. Also, a 61,000-dwt was reported delivery Southwest Pass for a trip with grains to the Philippines at US$22,600. Very
little activity from South America due to limited supply of fresh enquiry, a 56,000-dwt was fixed delivery Recalada for a trip to Bejaia at US$14,000. For trips to the east, an ultramax
was fixed at US$14,000 + US$425,000 ballast bonus redelivery Bangladesh.
In Asia, a lack of fresh enquiry combined with a build-up of tonnage meant rates declined. A 56,600-dwt open Haimen, fixed a trip via the Philippines back to China with nickel ore at
US$10,250. Further south, a 57,000-dwt 2008-built fixed delivery Gresik for a coal run via Indonesia to India at US$11,800. A 64,000-dwt 2015-built was fixed delivery Sandakan trip to
China at US$12,000. Other areas remained quiet, from South Africa a 60,000-dwt fixed a trip to west India at US$12,250 + US$225,000 ballast bonus.
A fairly slow week in general with various holidays worldwide. Negative sentiments remained across all routes, however there was talk of the US Gulf showing slight signs of recovery.
A 28,000-dwt 1996-built delivery east coast South America fixed grains to Yemen at US$11,750 with redelivery Port Said, whilst a 38,000-dwt 2015-built open in the same area fixed to the
west Mediterranean at US$15,000. A 38,000-dwt delivery Canakkale and a 33,000-dwt delivery Dardanelles were reportedly fixed both via the Black Sea at mid US$12,000s to west Africa and
US$11,000 to Otranto respectively.
In the Pacific, a 32,000-dwt open north China was fixed at US$10,000 for a trip to east coast India. Another similar-sized vessel open Lanqiao, achieved a rate in the mid US$8,000s basis
north China trip to Singapore. A 34,000-dwt open in Singapore was fixed for a trip via Indonesia to south China at US$10,000.
TANKER REPORT - WEEK 44
Reduced enquiry in the Middle East Gulf saw rates for 270,000 tonnes going long east ease modestly to WS 70. While going west, 280,000 tonnes cape/cape to US Gulf is assessed one
point lower at WS 27.5. West Africa/China is down 2.5 points to around WS 71.5. Caribs/WC India was fixed at $4.2 million. Shell and ST fixed Hound Point to Korea at US$5.3/5.4
million respectively, while Arzew/Korea went at US$4.75 million.
A quieter spell in West Africa saw rates for 130,000 tonnes to Europe ease five points to WS 95 with USAC fixed at WS 92.5. Black Sea rates for 135,000 tonnes to Mediterranean
held at WS 105 while Ceyhan/Canaport went at WS 75 and UKC-Med was fixed at WS 100-105 all basis 135,000 tonnes cargo size.
A volatile week in the Mediterranean saw rates for 80,000 tonnes lose 30 points to WS 125 before recovering in to WS 137.5/140 region with owners eyeing a heavy Black Sea
program for third decade November. Limited activity in the Baltic saw rates for 100,000 tonnes drop to WS 77.5, down 22.5 points. In the 80,000 tonnes cross North Sea trade,
rates followed suit easing 17.5 points to WS 100 level.
Plenty of early tonnage saw rates in the 70,000 tonnes Caribbean/up coast trade fall 15 points to WS 95.
The market softened to WS 115 for 55,000 tonnes from ARA and Skikda to US Gulf.
It has been a better week for owners of both LR1 and LR2 tonnage, with rates firming in to the low WS 120s basis both 55,000 and 75,000 tonnes for Middle East Gulf/ Japan.
Continent to USAC fell five points to WS 100 for 37,000 tonnes while rates for 38,000-tonnes from US Gulf to UKCont gained 20 points to WS 100.