Allied Weekly Shipping Market Report – Week 33,2023

Credit: VVBlog

Markets at a glance:

Newbuilding market — Despite the typical sluggish momentum around this time of the year, newbuilding market moved on a relatively strong pace as of the past couple of weeks, given the numerous orders coming to light during the same time frame. Tanker sector prevails as the leading figure at this point, with fair interest being present across the different size segments. On the other hand, dry bulk sector moved on an uninspiring track, reflecting somehow some of the most recent perplexed feelings among some interested parties.

Secondhand market — In the dry bulk sector, activity levels were sustained at modest levels as of the past couple of weeks or so, The ongoing pressure in asset price levels, may as well appear as a contributing factor in boosting buying appetite in the near term. In the tanker sector, things prevail more sluggish for some time. Whether this is just a temporary phase during the summer period, or there is actually a bearish trend in buying interest at this asset price status quo, it is yet to be seen.

Ship recycling market — There are a lot a mixed signals in the ship recycling market, with prices in Bangladesh and India weakening noticeably over the past month, and L/C issues leading to deals falling through and vessels being diverted to a different location. Despite this, Pakistan has reportedly landed a couple of sales and it’s offered prices have over-taken its nearest neighbours.

Dry bulk

Capesize – Despite losing 10 point on Friday, the BDI rose 9.6% over the week to make up for declines the week before and reach a level last seen in June. That being said, the good news belonged to the smaller sizes as Capesize earnings struggled to gain traction – the 5TC finished the week just $55/day above the Friday before – despite somehow being just followed by an active week of fixing. At this point, the bigger size segment seems unable to demonstrate a sustainable face, given the regular shifts in momentum across the different trade regions.

Panamax – It was a much better week for Panamax earnings which returned solid gains throughout the week, with the respective BPI TCE figure rising by roughly 15% during the same time frame. Far East-Cont. route’s earnings leapt up by over 42%, to close at US$ 5,474/day, while rates on both the Atlantic and Pacific RVs were climbed around 20%. The index is up 67% over the past four weeks, but there is a sense that the market is softening.

Supramax – Busy fixing for grain and coal cargoes supported the Supramax spot market, which rose 22% over the week. The gains have been less impressive than for the Panamaxes and the index remains at the lowest level for this time of year, for the past five years at least.

Handysize – Handysize market followed the overall upward trend in the dry bulk market, with considerable gains being noted across all main trade areas on week-on-week basis


VLCC – A bearish week was noted for the bigger size segment, with the benchmark spot TCE figure losing a 41.9% of its value on week-on-week basis. At the same time, monthly average of the spot TCE for the month of August stands at the lowest monthly levels noted in the market since previous year’s July’s market, underlying the current significant pressure prevail-ing in the market. At this point, Middle East—US Gulf seems more under pressure, given the past week’s collapse being noted. Notwithstanding this, with period market witnessing an uptick, we may as well anticipate resistance appearing in the market in the near term.

Suezmax – An overall positive week took place in the Suezmax market, with the respective TCE noticing a fair growth of 9.1% as of the past week, with the West Africa region supporting the general upward stance at this point. On the other hand, BSEA-Med trade lost traction during the same time frame.

Aframax – Things moved on a positive tone in the Aframax market too, with spot rates rising by 10.8% basis. Both Caribbean and Mediterranean and markets prevailed more fervently as of late. On the other hand, a slight negative pressure was presented in the period market.

MR — A strong week appeared in the MR freight market as well, with most core routes noticing gains during the same time frame. Both basins experi-enced gains as of late, with the average spot levels seemingly ready to climb at 3-month highest levels.

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