The Baltic Briefing’s weekly report is out for the first week of 2019. Here’s an insight on that report.
- It was an active start to the New Year, with trading from West Australia maintaining momentum during the holiday period. Rates for China hovered around the mid $6.00s, a few cents off the highs seen during the seasonal break.
- Increased trading was evident from Brazil as the week closed out, with talk of Vale fixing four or five ships direct at around $16.00 for end January/early February loading, Tubarao to Qingdao. Earlier expectations had been for rates nearer the mid $16.00s.
- CSN also took tonnage for 14-22 January from CSN to Qingdao, but little else emerged.
- Trading increased in the North Atlantic, with fresh transatlantic cargo and some negotiations underway for front haul at rates possibly a shade lower than previously anticipated.
- The coming week should produce a clearer picture as more return to their desks.
- It was a short week, with many yet to return to the office until this week. The Atlantic was subdued, with a lack of fresh enquiry especially for inter Atlantic trades.
- A lengthening tonnage profile meant rate levels came under pressure. A number of Continent ready vessels decided to buy some time by fixing short Baltic rounds, with levels dipping below $10,000 on these trades.
- South America witnessed greater activity, but here too rates softened. As the week closed out, there was a rumor of $30.00 per metric tonne concluded for 20-29 January dates Santos to China.
- The Pacific saw relatively good demand, particularly from Indonesia and NoPac.
- However, with South America looking weaker, owners were less inclined to ballast and charterers maintained, with their ideas helped by a softening FFA market.
- Following the seasonal holidays, a short week saw the BSI move in a negative direction. Charterers made the first move, covering requirements with distressed vessels remaining open from the holiday period.
- Limited activity surfaced from the Atlantic, but brokers said that demand was low across the basin.
- From South America a grain charterer fixed on subjects a 57,900 tonner delivery South Brazil trip via the Red Sea with sugar, redelivery Port Said, in the mid upper $14,000s.
- A 58,700dwt vessel fixed from the US Gulf to West Coast South America at $24,000.
- From Asia, there was a steady flow of cargoes but rates were under pressure. A 58,700 tonner was said to be booked delivery Hong Kong trip via Australia, redelivery Singapore-Japan range, at $9,200.
- The Indian Ocean saw increased fresh enquiry but limited fixtures.
- However, a 57,000dwt vessel went in the low $11,000s for Arabian Gulf to India.
- The return to work mid-week after the Christmas and New Year celebrations led to a slow start, with many suggesting that a clearer picture would not emerge for another few days.
- However, as last week progressed, many routes saw negative movements. Brokers suggested that rates dropped from the US Gulf and East Coast South America due to a lack of fresh enquiry.
- A 28,300dwt vessel was fixed delivery North Brazil, for a trip with steels, redelivery West Coast North Pacific, in the mid $12,000s.
- A 37,800 tonner fixed delivery South West Pass, redelivery West Coast South America, at $13,500.
- The Asian routes also remained under downward pressure. A 32,000dwt vessel was rumored fixed delivery Indonesia trip via Australia, redelivery Thailand, in the low $6,000s.
- It remains to be seen what the market will trade in the next few days.
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Source: Baltic Briefing