THE BALTIC Dry Index crept up last week, hitting 1055 on Friday. The index started the week at 939 on Monday.

The index hit a low last week of 919 – its lowest point since a nadir in February.


The week kicked off in the Pacific with a flurry of activity, with all three of the majors in the market from West Australia to China on similar dates. The market gained momentum with an increase in enquiry. Despite a lack of coal enquiry from East Coast Australia, the market remained resilient and rates continued to rise. By the middle of the week, there were expectations of a further push but this did not materialise, leading to a slight correction in rates. As the week drew to a close, the level of activity slowed, but the market has found a degree of stability.

In contrast, the Atlantic has been relatively quieter, although there has been a positive shift in sentiment and some resistance among owners, particularly among the vessels ballasting from the Pacific. Brokers reported improved bids for shipments from South Brazil to China, causing owners to reassess their position and leading to a notable spread between the bid and the offer.


A real contrast of a week for the Panamax market. The week began on a firm footing carried over from the previous week with sentiment remaining high. Supported by solid fresh demand in both basins, rates began to gain some gravitas. However, by mid-week the fragility seen in the market in recent weeks began to rear its head again, with bids retracting and, despite offers reducing slightly, a stand-off ensued as the week concluded. The Atlantic was generally led by fronthaul demand with end June arrivals ex EC South America achieving as high as US$15,000+US$500,000 bb delivery arrival port, whilst early July arrivals saw DOP rates on several occasions. Mineral demand ex Australia ably supported good supply ex Indonesia this week, with a bunch of deals concluded ex Australia for good design 82,000-dwt types at US$11,000 but such rates appeared unachievable by end of week with Charterers stepping back.


A rather turbulent week for the sector with sentiment remaining poor in most areas. Despite a trickle of fresh cargo appearing brokers spoke of an excess of prompt tonnage available keeping rates in check while owners competed to cover their vessels. From the Atlantic, a 59,000-dwt was heard to have fixed a scrap cargo from the Baltic to US East Coast at US$8,250. Further a 61,000-dwt fixed a trip from Greece to US East Coast with cement at US$11,000. In Asia, as the week progressed a little more cargo appeared from Indonesia, although again this did little to change the negative feel. A 60,000-dwt open mid China fixing a trip via Indonesia redelivery China at US$5,000. Similarly, a 63,000-dwt fixed a trip delivery Hong Kong via Australia redelivery Singapore-Japan at US$8,000. Elsewhere, the malaise continued with the Indian Ocean also lacking positive sentiment. A 63,000-dwt fixing a trip from EC India to China with iron ore at US$8,000.


With a general undertone of negativity and a lack of enquiry, both basins saw levels soften. A 28,000-dwt open spot in Iskenderun fixed basis delivery Port Said for a trip via the Red Sea to East Coast India with an intended cargo of petcoke at US$6,250. A 37,000-dwt was rumoured to have been fixed for a trip from the US East Coast to Turkey with an intended cargo of scrap at a rate between US$8,000 to US$9,000. In Asia, a 32,000-dwt opening in Thailand was fixed via Australia to Southeast Asia in the low US$7,000s. Whilst a 29,000-dwt fixed from Bunbury to Vietnam with an intended cargo of grains at around US$12,000. A 40,000-dwt newbuild opening ex-yard in Japan was fixed for a trip to the Continent -Mediterranean at US$10,000 whilst a 38,000-dwt opening in CJK was rumoured to have fixed via South Korea to the Philippines with an intended cargo of gypsum in the low US$7,000s.



MEG LR2’s have been subject to bearish sentiment over the last seven days. Freight levels have dwindled as result, TC1 has taken a 29.55 point tumble to WS114.38 and TC20 shed another US$684,000 to US$3,157,000.

West of Suez, Mediterranean/East LR2’s have also dipped. TC15 is currently pegged at US$2,729,000, an almost 10% drop and taking the Baltic round trip TCE to just US$1,600 /day.


In the MEG, LR1’s have also been lacklustre from depleted enquiry. TC5 came off 17.26 points to WS128.57 and on a trip west on TC8 fell from US$2,999,000 to US$2,575,000. On the UK-Continent, TC16 dipped to WS127.5 mid-week following that number reported on subjects a couple of times but the soft sentiment has led the index down to WS125 at time of writing.


MEG MR’s have been recorrected down again this week. Subsequently the TC17 index has dropped from WS260.71 to WS236.43 despite UK-Continent MR’s supply heavily outweighed demand this week. The TC2 index came off 17.26 points to WS177.78 and likewise TC19 sunk to WS187.14 (-24.29)

USG MR’s saw a mini mid-week hop up, only to then return back down. TC14 peaked at WS126.25 (up from WS120) to then resettle at WS117.5. TC18 topped out at WS187.5 up from WS180 to return back down to WS175 and TC21 similarly maxed out at US$714,000 to then go back down to its beginning of the week seat at US$658,000.

The MR Atlantic Triangulation Basket TCE dropped from US$31,517 to US$27,155.


Mediterranean Handymax’s once again continued to hold at the WS135 mark for the third week in a row. Up on the UK-Continent, TC23 also remained stable in the mid WS130’s.


A busier week and owners have managed to turn rates around, albeit slightly. The rate for 270,000 mt Middle East Gulf to China has improved by about 2.5 points to WS48.36 (a round trip TCE of US$24,978 per day basis the Baltic Exchange’s vessel description), while the 280,000mt Middle East Gulf to US Gulf trip (via the cape/cape routing) the rate is now assessed almost one point higher at WS32.78.

In the Atlantic market, the rate for 260,000mt West Africa/China climbed almost 2.5 points to WS50.53 (which shows a round voyage TCE of US$28,730 per day). The rate for 270,000mt US Gulf/China is now assessed US$66,667 higher than a week ago at US$7,977,778 (US$31,919 per day round trip TCE).


Rates for Suezmaxes have fallen across the board. For the 135,000mt CPC/Med route, the rate has fallen by nine points to WS110.28 (a round trip TCE of jUS$42,400 per day) while a similar loss was felt for the 130,000mt Nigeria/Rotterdam trip, to WS90.5 (a round trip TCE of US$32,500 per day). In the Middle East, the rate for 140,000mt Basra/Lavera eased five points to WS60.16.


In the North Sea, the rate for the 80,000mt Hound Point/Wilhelmshaven slipped five points to a fraction over the WS140 level (showing a round-trip daily TCE of US$46,400).

In the Mediterranean, rates tumbled with the 80,000mt Ceyhan/Lavera route shedding 21 points to WS149.5 (a daily round trip TCE of about US$42,900).

Across the Atlantic, the Stateside Aframax market has awoken once again. The rate for 70,000mt East Coast Mexico/US Gulf rose over 37.5 points to WS177, which shows a TCE of about US$48,600/day round trip. For the 70,000mt Covenas/US Gulf trip, the rate increased by more than 25 points to WS165, representing a round trip TCE of US$40,500 per day. For the trans-Atlantic route of 70,000mt US Gulf/Rotterdam, the rate is now nearly 34 points firmer than last Friday at WS177.5 (a round trip TCE of US$45,600 per day).


There has been some movements this week on the BLNG, with several ships that have been put on subs bolstering the rates. Rates for BLNG2 (USG/UKC) rose over US$7,000/day to end the week at US$48,945/day. Cargoes that had been rumoured previously are now covered and though the position lists show several ships available, optionality on those ships remains tight, which could help the rates further. For BLNG3 (USG/Japan via the Panama Canal) the rate rose US$6,728 to close at US$62,112 on the back of some interest from charterers but unsupported by owners. Out in the East, BLNG1 (Australia-Japan) rose by US$6,900/day since Tuesday to a shade below US$49,500 per day, supported by one vessel that had been reported on subs for intra-Pacific trade.


A quiet week overall for LPG, with many market players enjoying sunshine out in Oslo for Nor-Shipping. Rates softened overall and on the Eastern BLPG1 route we saw little life prior the ADNOC acceptances. Rates fell to US$104.143, a big drop from the day before shedding more than US$7 in one swoop. Sentiment has fallen away and owners are pushing ships out with little enquiry coming back in and further falls could be expected.

The BLPG3 route (USG/Japan) didn’t fare much better, closing at US$148.286, a fall of a little more than US$5 from the day before and nearly US$8 from the start of the week. It was reported that just two vessels were fixed out in the US in the last week so despite the sun shining for many enjoying Nor Shipping, those in the office and with ships are a little more sombre.