CAPE
A typically quiet start of the week, with rates easing on the lack
of activity. From the Atlantic, a fronthaul voyage paid $26.72 for
a Hampton Roads to S.Korea run with coal and $20 was agreed
on the key Tubarao/Qingdao route. Coal from Richards Bay to
Kandla was fixed at $11.00. In the Pacific, several vessels were
said to have fixed, but details were not forthcoming. The key
Dampier/Qingdao route was holding at $7.80-7.85. Mid-week
concluded business fared no better and the market eased again
for both basins with not a lot of new business reported fixed. The
Atlantic saw the key Tubarao/China route fixed at $19.50 and
$19.70 for mid-June dates, while trans-Atlantic business was
done at $7.75 for Tubarao/Taranto and $7.70 for
PDM/Rotterdam. From the Pacific basin, Port Hedland/Qingdao
runs fixed at $7.60 for mid-June loading and Dampier/Qingdao at
$7.55. As the week drew to a close Atlantic continued to see
pressure on rates with more ships arriving from the east.
Frontahaul voyages were under $20.00, while trans-Atlantic runs
have dropped, with 170,000 tons from Seven Islands to
Rotterdam done at $6.00 for mid-June dates. In the east rates
are steadier. The key Dampier/Qingdao route is at $7.60. With
the levels generally sliding, owners have begun discounting their
rates. It looks really a charterer's market now. Meantime Drybulk
consultancy Commodore Research said about 96.7m tons of iron
ore is stockpiled at Chinese ports, which is 400,000 tonnes less
than a week ago. Chinese steel prices average 4,400 yuan ($695)
per ton, about 40 yuan less than a week ago. Stockpiles of
Chinese flat and construction steel products total about 16.4m
tons, 100,000 tons less than a week ago. Commodore pointed out
that steel prices have decreased for five straight weeks and
Chinese steel mills are likely to cut production soon in order to
help stimulate prices. While they do not anticipate that production
will come under a large amount of pressure, Commodore expects
that it will be large enough to put pressure on iron ore demand
and Capesize rates. The Baltic Capesize index is down 202 this
week to 1424, whereas the Time Charter Average route lost
$2,354 to $6,487 daily.
PANAMAX
ATLANTIC
The week started with owners showing resistance to lower rates
especially for front haul trips but this changed quickly and rates
starting to drop as the week progressed and the list of available
tonnage including those in ballast from the east kept growing.
Transatlantic trips are being paid around $10,000 and those to the
east around $17,000 and the trend is negative. Some of the
fixtures reported during the week were: Ostria S 2008 76,444 dwt
delivery passing Gibraltar spot 2 laden legs 1st via Trombetas
redelivery Skaw-Cape Passero $11,750 daily – Bunge. Ornak 2010
79,677 dwt delivery Gibraltar spot trip via German North Sea &
Jeddah redelivery Port Said $12,250 daily - Alfred C.Toepfer.
Navios Sagittarius 2006 75,500 dwt delivery Recalada 5/10 June
trip redelivery Egyptian Med $14,250 daily + $400,000 bb - Alfred
C.Toepfer. Yuan Hui Hai 2006 74,259 dwt delivery passing
Gibraltar ppt trip via EC South America redelivery Skaw-Gibraltar
$10,000 daily – Cargill. Red Queen 2005 76,752 dwt delivery
Gibraltar end May trip via Paranagua redelivery Japan $17,250
daily–cnr. Mulberry Wilton 2004 76,300 dwt delivery EC South
America 8/11 June redelivery Singapore-Japan $17050 daily +
$700,000 bb – Cargill. Mastro Nikos 2011 82,191 dwt delivery aps
Santos 6/10 June trip redelivery Singapore-Japan $16,750 daily +
$675,000 bb – Glencore. Prabhu Mohini 2011 81,000 dwt delivery
EC South America 15/20 June trip redelivery Singapore-Japan
$16,000 daily + $600,000 bb – Cargill.
PACIFIC
The pacific panamax market as was expected continued to have a
sharp downwards direction during the week due to less minerals
being shipped from Indonesia or Australia to China. There was
interest from Charterers to take lme panamaxes/kamsarmaxes in
Far East for short period from $8,500 per day to $10,000 per day
depending on vessel's specifications and position. The pacific
round voyage rate level for lme panamaxes/kamsarmaxes was
ranging between $6,500 per day to $8,000 per day level
depending on vessel's position, the business fixed and the
specifications of the vessel, but for trips via nopac or Australia
direction Persian Gulf the rates where between $10,000 per day
and $11000 per day. Some nice lme panamaxes got fixed
between $6,500 to 7,000 per day basis delivery South China for
Indonesia round-voyage coal.
HANDYSIZE/HANDYMAX
ECSA/WAFRICA/USG
Supramax tonnage in the Atlantic saw good rates going into the
weekend, with an NCSA/Med run fixed at a firm $26,000 daily.
Voyage business paid $29,75 for a scrap cargo from USNH to
Turkey. The market was said to have strengthened for Handysizes
in the Atlantic with reports circulating of ECSA/NCSA business
done at over $20,000 daily. There was not a lot of concluded
business reported for either sector of the Handy market.
Surprisingly there was still some demand for period tonnage in the
Atlantic, with talk of $18,500 daily having been paid for a
supramax from EC Mexico. A trip out from South Africa via east
coast South America was reported done at $19,000 daily, but
additional details were lacking. In the Atlantic, there was talk of
several vessels having fixed trips out and trans-Atlantic business
at steady numbers, but confirmation was lacking. There were
reports of a supramax fixed on subjects for a trip out at $31,000
daily, while a trans-Atlantic trip with 2-3 laden legs was said done
at $16,250 daily from east coast Mexico. Handy business from the
U.S. Gulf saw some improvement today as limited tonnage
availability pushed rates up. From Tampa to WC India, a supramax
was fixed at a firm $31,000 daily for end-May delivery, while a
trans- Atlantic run paid $27,000 daily for early June dates. In the
Atlantic, ADM was said to have fixed an Oldendorff TBN for June
01-05 delivery north coast South America for a trip with redelivery
in the Mediterranean at $26,000 daily. The 2012-built 57,000 dwt
Beks Cenk has reportedly fixed on subjects with an undisclosed
charterer for spot delivery Lome on a trip via Santana with
redelivery China at $19,500 daily. The 2003-built 50,329 dwt
Speedwell has fixed with Saif for May 29-30 delivery New Orleans
on a trip with 2-3 laden legs and redelivery in the Atlantic at
$16,000 daily. Sims took the 2010-built Beautiful Rena for prompt
loading 45,500 tons 10% scrap from U.S.N.H. to Turkey at
$29,75. Gearbulk agreed $31,000 daily for the 2006- built 55,924
dwt Yasa Ozcan for end-May delivery Tampa on a trip with
redelivery west coast India at $31,000 daily. STX Pan Ocean
reportedly fixed on subjects the 2010-built 58,000 dwt Isabelita
for June 01-05 delivery in the U.S. Gulf on a trip with redelivery
Italy at $27,000 daily. The 2007-built 30,611 dwt Kent Tenacious
has gone to Pacbasin for June 06-09 delivery aps Recalada on a
trip with redelivery Morocco at $20,250 daily. The 2011-built
34,000 dwt Sea Dolphin C will earn $14,500 daily from Norden for
spot delivery Jamaica on a trip via the U.S. east coast with
redelivery on the Continent. MUR was linked on subjects with the
2012-built 58,000 dwt United Amojanda for early June delivery in
the U.S. Gulf on a trip with redelivery to the Continent at $12,500
daily plus a $450,000 ballast bonus. The 2008-built 53,408 dwt
UBC Longkou fixed recently with Nordic Bulk for spot delivery
Iceland on a trip with 2-3 laden legs and redelivery in the Atlantic
at $10,750 daily. BST has fixed the 2008-built 53,408 dwt Nordic
Bulk-relet UBC Longkou for May 25-28 loading 41,500 tons scrap
stowing 55ft from Antwerp to the Sea of Marmara at $23,00. The
2011-built CF Diamond went to Vitol for June 03-12 loading
50,000 tons 10% coal from Maracaibo to Rotterdam at $22,00.
2010-built 57,124 dwt Chang Hang Jiang Hai went to STX Pan
Ocean for end- May delivery east coast Mexico for 3-5 months
trading and redelivery worldwide at $18,500 daily. Eastern Bulk
was said to be the charterer of the 2010-built 58,107 dwt Guma
for end-May delivery passing South Africa on a trip via east coast
South America with redelivery Singapore-Japan at $17,000 daily.
2009-built 58,717 dwt Maritime Emerald was fixed to Cargill for
May 16 delivery retro-Gibraltar on a trip via north Brazil with
redelivery China at $24,000 daily. It emerged that Noble recently
took the 1999-built 45,270 dwt Loreto for end-May delivery dop
Houston on a trip with redelivery Singapore-Japan at $18,500
daily. An unnamed charterer has the 1989-built 26,970 dwt ID
Bulker for May 25-26 delivery aps Recalada on a via north coast
South America and redelivery in the Caribbean at $23,500 daily
with optional redelivery west coast South America at $24,000
daily. The 1997-built 23,984 dwt Paros was fixed to an unnamed
charterer for end-May delivery Houston on a trip with redelivery
Vera Cruz at $12,500 daily.
CONT/MED/BSEA
Market moved firm during this week with luck of reported fixtures.
Luck of vessels able for front-haul drove rates in higher rates.
Supras gain low-mid 20's in Canakkale from Black Sea to Persian
Gulf/India while backhaul Continent business gain around 8,000
basis Black Sea. The 2008-built 53,408 dwt UBC Longkou fixed
recently with Nordic Bulk for spot delivery Iceland on a trip with 2-3
laden legs and redelivery in the Atlantic at $10,750 daily. BST has
fixed the 2008-built 53,408 dwt Nordic Bulk-relet UBC Longkou for
May 25-28 loading 41,500 tons scrap stowing 55ft from Antwerp to
the Sea of Marmara at $23,00. Western Bulk Carriers has the 2009-
built 55,804 dwt Angele N. for May 25-30 delivery Lisbon on a trip
with redelivery West Africa at $15,900 daily.
FAR EAST
Market continued to be soft throughout this week in the pacific
market. Not much excitement in the Far East with too many spot
ships looking for suitable cargo. Indonesia coal business remained
the major market where from all trying to secure employment. A
few nickel ore cargoes ex Philippines not being able to give market
a boost. India market remains very quiet and with the monsoon
season approaching situation expected to become even worse.
Many ships noted ballasting towards South Africa in order to be
able and find cargo ex ECSA which provides steady/strong
numbers.
VLCC
A busy week, but a softer one, as Charterers were able to chip
away at the last done. A lengthy tonnage list provided plenty of
options to the quoted cargoes and the rules of supply and
demand kicked in. To the West, rates a fraction under w40 would
secure tonnage and MEG/East rates started the month in the high
W50's, however as the week drew on, we have seen W55 and
pointers that we may see a few points ower. The delays in
Chinese discharge ports is slowly resolving, freeing up vessels for
return to the load ranges. The drop in Oil prices has given Owners
the ability to purchase cheaper bunkers, enabling their
voyage calculations to look a little more acceptable. With the 1 st
decade June now covered, (around 42 fixtures) it does not appear
June will be a lighter month on volume. In the Atlantic it was a
quieter week, with Indian cargoes providing the most activity out
of West Africa. A deal was completed Tuesday for West Africa to
the UKC at W60, and rates looked a little softer, as ballasters
from the East were attracted. Indeed, by Friday a quoted Indian
cargo had received a reported 9 offers before fixing at the $4m
mark. Rates for West Africa/China were at W57. In the Caribs, a
major Chinese Charterer fixed 3 ships at $4.8m to Spore and an
additional $1m for a Chinese discharge.
SUEZMAX
The West African Suezmax market saw rates move down about
W10-15 points this week. In terms of the current fixing window,
we are almost covered until 15 th June and we expect about
another 11-13 million spot barrels to be unfixed prior to 20th
June. Rates for West Africa to US.Gulf are around 130kt x
W75/80 today for 14th-20th June dates (earns about $15-19,000
pd TCE on a round trip - 44/45 days employment). Potential
tonnage now looks a little more balanced up until 13th-14th June
dates. Currently about 9 available and naturally positioned
Suezmaxes can be in Nigeria by 10th June or 24 natural ships by
15th June. West African supply is bulked up a little by the 13
naturally positioned ships that can potentially be in West Africa
between 16th-20th June. On paper there are enough ships but if
we see a few more of the earlier ships fixed away off mid-June
dates then potentially any late fixing stems around 10th-15th
June may struggle to fix at last done next week. We still feel a
few 'competitive' ships are on the water which will keep rates
subdued as we enter the weekend but charterers are likely to be
facing a more aggressive tonnage list next week once the weaker
units are cleared out.
AFRAMAX
North Sea
With a fairly busy start to the week in the North Sea and Baltic
for Aframax's, we saw a lot of ships taken from the list and with
this it gave a feeling of a potential firming. Despite the busy
market little change was seen in terms of rates at the start of the
week as, at the time, plenty of ships remained available and were
able to cover the inquiry. After most of the ships were taken up
by mid-week it left any charterers with a cargo with earlier dates
with a high possibility of paying up, as W85 was seen for a
Primorsk/UKC voyage, around W10 points higher than the natural
fixing window. Currently the market is steady with rates hovering
around W97.5 for Cross-UKC voyages and W77.5 for a voyage
Primorsk/UKC, around W2.5 points up from the start of the week
for both routes.
Mediterranean
Med Aframax market faced a fair amount of activity up to the
middle of the week, slowing down in the last few days. As the
fixing window moved from May to June dates, charterers had
more options on vessels as the tonnage list opened up.
Consequently, rates stayed at the same levels as last week with
Cross Med voyages in the range of W80 to W85 and Black Sea
deals mainly reported at the conference rate of W85.
Caribs
A softer sentiment was felt throughout this week in the Caribs as
we saw the fixing level move from around W120 from the end of
last week to W105. With little in the way inquiry it gave tonnage
a chance to build up and as a result it saw far more ships
available in the area then there has been in the last few weeks.
Despite a bit of pre-holiday activity it was not enough to move
the fixing level upward, but likely helped it from any further
erosion.