Baltic Exchange's latest weekly freight market report: Panamax market mixed

Capesize ships

Capesize (5TC) weighted average rental prices fell $790 to close at $17,175 last week. Rental prices on the Brazil-Qingdao route fell by US$2, while rental prices on the Western Australia-Qingdao route were flat at around US$9-9.50. In terms of ships starting voyages in the North Atlantic plate, the charter prices of transatlantic and outbound routes both increased in the middle of last week, but they showed signs of weakening at the close, at $24,194/day and $36,875/day, respectively. In general, the capesize market stabilized after ups and downs last week, and the supply of capacity in individual regions was tight.

Panamax ships

The Panamax market was mixed last week. Rental prices have been under pressure across much of the Atlantic plate last week. Rent prices in Asia were supported by strong demand in the North Pacific sector throughout the week, although the market retreated as the weekend approached. The decline in rental prices in the North Atlantic plate is mainly due to the apparent lack of demand for mineral transportation in the north. There were sales in the area for rents of $19,000 at the beginning of last week, but close to $18,000 was seen towards the weekend. U.S. Gulf grain shipping demand appears to be back in the spotlight for traders, with many November arrivals closing deals and delays in the Neo-Panama Canal again impacting rental prices. Active transaction levels in the North Pacific once again dominated rental prices in the Asia region. An 82,000 dwt vessel, said to be in good condition, was delivered in Japan for a round trip to the North Pacific and was sold at a high charter price of $23,000. Time charter deals are rare, with a responsively designed vessel delivered in China for 5-7 months at a charter price of US$19,000.

Extreme Handysize/Supramax Vessels

The Handymax/Supramax market was mixed across regions last week. Limited new enquiries in Asia, increased spot capacity and lack of upward momentum in rental prices. However, overall market sentiment in the Atlantic sector remains positive. There are fewer time charter transactions. A 61,000 dwt vessel from Poland on a one-year charter was sold at around $17,500. A 63,000 dwt vessel was delivered in Singapore, also on a one-year charter, at US$17,000. Vessels starting voyages in the US Gulf continue to see activity, with Handysizes to China fetching close to $30,000 in the region. Further south, activity on the east coast of South America was steady. A 58,000 dwt vessel bound for the Indo-Arabian Gulf region was traded at around $17,000-$17,500 in hire, plus around $725,000 in vacancy allowances. Market sentiment was subdued last week with less coal shipping activity in Indonesia. A 53,000 dwt vessel was delivered in Singapore, sailed through Indonesia, redelivered in Vietnam, and was sold for around $14,500 in charter. Further north, a 58,000 dwt vessel was delivered at the mouth of the Yangtze River in China, bound for the US Gulf, where it was traded at a charter price of around $13,000.

Handysize ships

Asian markets continued to be sluggish, with rental prices falling sharply last week. Sources say a 40,000 dwt vessel bound for Southeast Asia from Japan was sold at $13,500 in charter. A 37,000 dwt vessel, which sailed from China, sailed through Indonesia and returned to China, was sold at a charter price of US$12,000. A 31,000 dwt vessel from Singapore to South East Asia via Australia, scheduled to transport salt, was sold at $11,000 for charter. There is a lot of transaction activity in the US Gulf region. Sources said a 39,000 dwt vessel bound for Tunisia from Houston, scheduled to transport grain, was sold at a charter price of just over $17,000. Sources say a 36,000 dwt vessel from Savannah to the UK-Continental Europe, planned to transport recycled wood pellets, was sold at a charter price of around $15,000, but no further details were made public. A 28,000 dwt vessel from Santos to Algeria, scheduled to transport sugar, was sold at a charter price of $26,000.

product oil tanker

Near the close of last week, the Baltic Product Tanker Index rose to 1,231 points from 1,226 points last week.

The cargo level in the Middle East Gulf region is stable, and the demand for cargo transportation and the supply of transportation capacity are basically balanced. As a result, freight rates on most routes increased slightly compared to the same period last week. The freight index of the 75,000-ton LR2 tanker on the TC1 route from the Middle East Gulf to Japan rose 1.56 points from WS196.25 to WS197.81, and the equivalent time charter rate for the round-trip voyage was US$36,162/day. The LR1 tanker was also largely unchanged from last week, and the 55,000-ton tanker freight index on the Middle East Gulf to Japan TC5 route climbed 6.43 points to WS199.29. The freight rate of the Middle East Gulf to the UK-Continental Europe TC8 route is almost the same as last week's closing price of US$52.05/ton (equivalent lump sum freight about US$3.38 million).

The freight rate of the 35,000-ton MR tanker on the TC17 route from the Middle East Gulf to East Africa fell, and the charterer detained the cargo, causing the freight index to drop 29.76 points to WS338.57 points, and the equivalent time charter rate for the round-trip voyage was US$31,219/day.

West of the Suez Canal, freight rates for the 80,000-ton LR2 tanker on the TC15 route from the Mediterranean to Japan also weakened, falling $45,833 to close at $3,716,667 near the weekend.

Freight rates for the 60,000-ton LR1 tanker on the TC16 route from Amsterdam to the coastal city of Lomé fell slightly by 2.14 points to close at WS228.57 near the weekend.

UK-Continental MR tanker rates rose. The 37,000-ton tanker freight index on the TC2 route between the UK and continental Europe to the US Atlantic coast rose 23.05 points, surpassing the WS300 mark and closing at WS301.94. The 37,000-ton tanker freight index on the TC19 route from Amsterdam to Lagos also rose 20.3 points to end at WS311.07.

The previously volatile market of MR tankers in the US Gulf has subsided, and the current freight rate is flat. The U.S. Gulf to U.K.-Continental Europe TC14 38,000-tonne freight index rose 3.33 points to WS197.50. The MR tanker freight index on the US Gulf to Brazil TC18 route also rose 13.33 points to WS308.33. Equivalent time-charter rates for MR tankers in the Atlantic sector rose by $3,200/day to $38,683/day.

VLCC tanker

The VLCC tanker market is on the rise as a whole, especially for routes to the east. The 270,000-ton NHC tanker freight index on the Middle East Gulf to China route rose more than 13.5 points to WS107.5, with an equivalent time charter rate of $72,199 per day for the round-trip voyage. The 260,000-ton NHC tanker freight index on the West Africa to China route rose more than 15 points to WS107.45, with an equivalent time charter rate of $71,595 per day for the round-trip voyage. The freight rate of the 270,000-ton NHC tanker on the US Gulf to China route also rose by more than US$1 million last week to close at US$11.7 million, and the equivalent time charter rate for the round-trip voyage was US$56,830/day.

The market for the route to the West was slightly quiet, but the rental price still increased. The freight index of the Middle East-US Gulf route rose to WS57.33, and the equivalent time charter rate for the round-trip voyage increased by more than US$8,500/day to US$21,595/day .

Suezmax tanker

In the Suezmax tanker market, freight rates for routes starting from the Black Sea rose slightly to WS192.56, and the equivalent time charter rate was US$82,190/day. The Middle East market performed even better. The 140,000-ton NHC tanker freight index on the AG-Mediterranean route further rose by more than 12 points to close at WS97.94, with an equivalent time charter rate of $26,078 per day for the round-trip voyage.

Aframax tanker

The U.S. Aframax tanker market was volatile, and the 70,000-ton tanker on the Caribbean-American Gulf route saw a particularly huge increase, up 156.25 points from last week to close at WS380.63. The 70,000-ton tanker freight index on the U.S. Gulf to Northwest Europe route rose slightly less, up 65 points, to close at WS300, a new high this year, with an equivalent time charter rate of $65,7562 per day for round-trip voyages.

The European market was less volatile, and freight rates for all routes increased, but the increase was smaller than that of the US routes. The North Sea to Continental Europe 80,000-tonne freight index rose 5 points to WS211.56. The Baltic-UK-Continental 100,000-ton tanker freight index rose nearly 10 points to WS233.75, with a round-trip equivalent time charter rate of $77,390/day.