Another week with rates softening on the spot. The delays mentioned last week concerning Freeports reopening has had significant ramifications on the availability of spot tonnage. In a change of pace from earlier in the year, whereby spot requirement were high but tonnage was low, the lack of available cargoes and charterers reassessing the bearish sentiment has meant that levels have fallen yet again. Levels have fallen around 50% of their year highs to current levels. Winter is coming and with forecasts in parts of Europe suggesting a very chilly period is enroute it remains to be seen if this will impact spot pricing.
Period remains active with 2023 seeing appetite still for the first quarter. Levels given for a 174k two-stroke vsl with 0.085% boil off are $219,000 for 12 months and $181,250 for three years.
The LPG market has changed pace again with further rises on all three Baltic routes. The highs that saw slight corrections in the previous week have again been broken. A busy MEG market, supplemented by a strong Indian presence, has keep rates on firm footing. For BLPG1 a rise of just under $1.5 saw the week close at $140.286. A vessel fixed for Yanbu-East had an option to discharge into India at $141 with a round trip to Chiba at $137. While premiums have been paid for non-Baltic routes, there are cargoes to cover so sentiment shall remain bullish.
Panama has remained the cause of concern for many with delays ramping up. Slots at auction are going at big premiums and focus has been on tonnage coming via the Suez/Cape to fill the void. BLPG3 Houston-Chiba, gained $3 over the week to finish at $204.429, with no signs of abating. But by far the biggest gain was made for vessels going Houston-Flushing with nearly $14 over the week. Reports of a vessel confirmed for mid Jan dates had options for both East and West at $200 and $125 respectively justified the weeks closing at $126.4.
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Source: Baltic Exchange