CAPE
The week opened with the market under pressure. Rates have
been slipping since mid of previous week as prompt cargoes
became increasingly scarce, so it was not a surprise that Capesize
business got off to a rather quiet start. In the Atlantic rates
appeared to trend sideways. Tubarao/Qingdao was fixed at
$17.95. Otherwise the basin heard that Black Sea/China trip was
covered with a LME spot in Israel at $26,500 daily. In the Pacific,
a Dalrymple/Rotterdam voyage fixed at $12.80 for first half
August dates and a Dampier/Qingdao end July stem repeated last
week's lowest of $7.05, but a bit later it was heard that $7 was
done for early August. Moving towards mid-week, the market
provided little excitement to the owners with rates remaining
steady. In the Atlantic basin, rates trended sideways in light
activity. Tubarao/Qingdao was hovering between $17.80 and
$17.90 for early August dates. Seven Island to Qingdao was done
at $22.50. Rates held steady in the Pacific. The key
Dampier/Qingdao route was still around the $7.00 mark for early
August loading, whereas a Hay-Point/Gangavaram cargo was
done at $10.75. On time charter a trans-pacific round paid a poor
$4,750 daily. As the week drew to a close trading remained
somewhat slow in the Atlantic and pressure seemed to mount on
rates. A trans-atlantic round via Colombia, paid $5,350 for a 13-
year old vessel with prompt dates. Activity in the east improved,
with Rio Tinto in the market and a number of vessels on subjects
for the Dampier/China run at $7.00. The Baltic Capesize index
was down 34 this week to 1276 and the Time Charter Average
route lost $561 to $5,342 daily.
PANAMAX
ATLANTIC
A typical summer week with limited activity and rates trending
sideways. The North Atlantic was more balanced as there were not
so many vessels available - on the other hand East Coast South
America was weaker as a result of the plenty ballasters from the
Indian and the Pacific Ocean. Rates for transatlantic trips hovered
around $10-11,000 and front haul trips to the East around $17-
18,000. Some fixtures reported through the week were: Vassos
2004 76,015 dwt delivery EC South America 1/10 August trip via
Egypt redelivery Cape Passero $10,500 daily plus $300,000 bb -
Alfred C.Toepfer. Athina L NS United relet 2011 81,358 dwt
delivery EC South America 20/25 July trip via Egypt redelivery
Cape Passero $10,000 daily plus $300,000 bb – Marubeni.
Atalanta 2010 82,094 dwt delivery Tyne 20/21 July trip via Baltic
redelivery UKC $13,500 daily – Oldendorff. Rosco Sandalwood
2001 76,801 dwt delivery EC South America 30 July/3 Aug trip
redelivery China $15,250 daily plus $525,000 bb - Pacific Bulk.
Nikolaos 2009 75,500 dwt delivery EC South America 11/16
August 1/2 laden legs redelivery Singapore-Japan approximately
$15,200 daily plus $320,000 bb – Cargill. Wise Young 2011 82,012
dwt delivery EC South America 1/10 August trip redelivery China
$15,500 daily plus $500,000 bb - Yangtze Navigation. Fengli 8
1994 70,047 dwt delivery passing Gibraltar spot trip via Orinoco
redelivery China $17,400 daily - Torm.
PACIFIC
The situation remained unchanged in the basin with very few
orders available leading once again the owners to ballast their
vessels to East Coast South America or the U.S.G in search of
hopefully better incomes. The activity within the Pacific is still
mainly coming from Indonesia with the addition of some cargoes
from Nopac and East Australia. Rates remained at the same levels
i.e around $8-9,000 depending on position, specs etc. Some
indicative fixtures reported were: Lowlands Nello NS United relet
2004 76,830 dwt delivery ex dry dock Nantong 20/22 July trip
via Newcastle redelivery Taiwan $8,000 daily – IMC. Riruccia 1997
74,002 dwt delivery ex drydock Nantong 1/8 August trip via EC
Australia redelivery EC India $8,500 daily – Panacore. Dione 2001
75,172 dwt dely Ningbo ppt trip via EC Australia redelivery EC
India $8,750 daily – Noble. Tian Hua Feng 20001 73,996 dwt
delivery Yangjiang spot trip via West Australia redel China
$10,000 daily – NCS. Kayu Ramin 1995 75,229 dwt delivery
Tianjin prompt trip via US Gulf redelivery Singapore-Japan $7,800
daily.
HANDYSIZE/HANDYMAX
ECSA/WAFRICA/USG
While there was business reported fixed in the Atlantic, most of
the details remained private. Rates appeared to trend sideways on
the lack of activity. Handy business in the Atlantic saw rates trend
sideways/slightly down in quieter trading.A supramax was said
fixed from Brazil/East at $18,250 daily plus a $375,000 bb. This
corrected the rate and bb downward from earlier reports, which
had put the rate at $19,000 daily and $450,000 bb. A spot trans-
Atlantic run paid $23,750 daily for a USG/Black Sea trip. From
east coast South America, a supramax fixed at $14,000 daily plus
a $400,000 bb to Skaw-Cape Passero. A spot 16-year old vessel
earned $16,750 daily for a USG/Brazil run. Atlantic Handy
business saw Glencore fix a TBN for prompt loading 26,000 tons
5% grain from Ilichevsk to Mombasa at $49,50. J. Lauritzen take
the 2012-built 56,847 dwt Frederike Selmer for spot delivery on
the Continent for a trip with redelivery Turkey at $23,000 daily.
Torm has the 2008-built 58,780 dwt Kastro for spot delivery
Maracaibo on a trip with redelivery on the Continent at $22,500
daily. The 1996-built 45,956 dwt Force Ranger has fixed with
Cargill for spot delivery in the U.S. Gulf on a trip with redelivery
Brazil at $16,750 daily. Cargill took the 2011-built 55,625 dwt
Hanjin Rostock for spot delivery in the U.S. Gulf on a trip with
redelivery in the Black Sea at $23,750 daily. An undisclosed
charterer has reportedly fixed on subjects the 2011-built 58,000
dwt Genco Rhone for July 20-25 delivery US Gulf on a trip with
redelivery Turkey at $21,000 daily. The 2005-built 52,347 dwt
Crown Princess has fixed with Suisse Atlantique for July 25-27
delivery aps Santos on a trip with redelivery Skaw-Cape Passero at
$14,000 daily plus a $400,000 ballast bonus. 2012-built 55,675
dwt Giannutri fixed with Noble for July 21-22 delivery Santos on a
trip with redelivery Singapore-Japan at $18,250 daily plus a ballast
bonus of $375,000. STX Pan Ocean agreed $17,000 daily for the
2001-built 46,492 dwt Danos Z with spot delivery Houston for 4-6
months trading and redelivery worldwide at $17,000 daily.
CONT/MED/BSEA
A typical summer week is over with less activity. Market moved
softer due to lack of fresh requirements. Also front haul rates
softened instead last done. There was also luck of reported
fixtures. 'Heilan Spring' 2010 56,920 dwt delivery Port Sudan spot
trip via Black Sea redelivery Singapore-Japan $14,000 daily –
Phaethon. 'Great Prestige' 1998 46,193 dwt delivery Canakkale
spot trip via Black Sea redelivery Singapore-Japan approximately
$19,000 daily – Transvast. 'Zini' 1998 28,412 dwt delivery passing
Gibraltar prompt trip via French Bay redelivery West Africa
$12,000 daily – Sometra. 'Frederike Selmer' 2012 56,847 dwt
delivery Continent spot trip redelivery Turkey approximately
$23,000 daily - J Lauritzen. Glencore fixed a TBN for prompt
loading 26,000 tons 5% grain from Ilichevsk to Mombasa at
$49,50.
VLCC
We have said it before and at the risk of sounding like a broken
record, bunker prices continue to run the rule over the VLCC
market. Any volatility is a result of Owners calculations taking
into account the cost of fuelling their ships. In Fujairah for
example, 1 mt of IFO380 has risen by over $30 since Monday as
oil prices rise on the back of un-certainty in the Middle East.
Cargoes loading in the MEG towards the end of the week,
although few in number, found lower, or even a repeat of last
done increasingly difficult to achieve as the market bottomed.
Early in the week saw MEG/East in the mid W30’s, with one
Eastern Charterer able to snare an oil company relet at W32 on a
much larger cargo size. Older tonnage or those coming out of dry
dock were also going at a dis-count. At the time of writing, rates
remain bottomed still in the mid W30’s for regular tonnage. Going
West, Charterers have pushed for whatever they can get lower
than W25 and we saw W23 reported to the USG Friday. In the
Atlantic, West Africa/East has remained pretty steady as the week
drew on. W38 was completed on Monday to Taiwan and W37.5 on
Friday to China. To the West, a point or two above W40 would
secure a ship, despite natural West tonnage tightening off earlier
dates. In the Caribs, it was a busy week with around 7 or so
fixtures reported for Eastern voyages. The Indians were busy with
deals completed at a fraction below $3m for West Coast
discharge. For longer voyages to the Far East, rates crept up a
touch off a shorter position list and increasing bunkers.
Caribs/Spore was at $3.35m on Tuesday off end July dates to
$3.45m off the 10th August reported Friday.
SUEZMAX
We end the week with a reported deal done 130,000 mt West
Africa/USG at W60 (albeit on an older ship), which represents a
drop of about 2.5 points over the last 7 days. In fact there
doesn’t appear to be a vast overhang of prompt ships in West
Africa at the moment, but the ‘fixing window’ has moved on into
first decade august or even later, and there is as always plenty of
tonnage around on those dates very keen to fix for fear of
‘missing the boat’. Mathematically speaking, a major global
surplus of ships as we see today implies not only rock-bottom
rates but also the increased likelihood of enforced idleness, and
as cash-flow becomes an increasingly urgent factor, Owners have
an extra incentive to get their ships fixed. The current very soft
VLCC market is also looming in the background as the bigger
ships tend to influence trends and sentiment in the rest of the
market. Some Med rates also softened, as levels for transatlantic
business dipped to about W55 for 130,000 mt Med/USG, again
down about 2.5 points over the period, with reports that
premiums for the USAC were also eroded to just 2.5 points or
even less above the base-line USG option. However standard
Cross Med or Black Sea voyages held up in the low W70’s,
bolstered perhaps by earlier laycans and the odd potential
replacement requirement. East of Suez was busier with first
decade August demand for both modern ships for AG/ West and
also increased activity for AG/India charterers taking mostly older
units, with W42.5 the going rate now for west options. Early
August tonnage for Indian business has been depleted and
remaining ships seem to be looking for higher rates than the
previously established mid/low W70s level.
AFRAMAX
North Sea
The same softer feel that was present last week carried over the
weekend and has been felt for this week also. The large amount
of tonnage throughout the area has been the result of the current
fall in numbers as reported cargos in the area have not been
enough to tighten the list. Around a W2.5 fall in the fixing level
for both Cross North Sea and Primorsk/UKC voyages, to move to
W87.5 and W65 respectively, was seen and it is unlikely that
much lower will be seen as owners’ earnings will be moving into
barely positive numbers. Currently the same steady/soft feel
remains for Aframaxes in the North Sea and Baltic and without a
huge increase in activity it would seem that those numbers will
remain for the near future.
Mediterranean
Owners’ expectation for a busy start to the week didn’t
materialize. The lengthy available tonnage which has built up
since last week and together with the average enquiry quoted
during the whole week put downward pressure on rates.
Depending on the position of the vessel and the
voyage specifics deals concluded at a range of rates from W82.5
to W87.5 for Cross Med voyages while Black Sea business seem
to be at about W87.5. After the weekend it is expected market to
stay at charterers’ favor, as more cargoes are needed in order to
see a change on rates as it seems that there will be more than
enough prompt vessels in the area.
Caribs
With a quiet week last week it allowed tonnage to build up,
resulting in more than enough ships being available to cover
inquiry for the area and therefore causing the fixing level to drop
W5 points at the beginning of the week to W90 for a Caribs/ USG
voyage. Despite the softer feel early on in the week, there was
plenty of activity reported later on but with the high amount of
ships the fixing level remained unchanged from W90. Currently,
with cargos still reported in the area, the feeling is that the fixing
level could see a slight rise if the activity can continue to deplete
the amount of ships.