The cape ship market started strong last week; The Panamax ship market is steadily rising, with a strong trend; In the refined oil tanker market, LR1 and LR2 tankers in the Middle East Gulf region have shown improvement.
According to last week’s freight market report released by the Baltic Exchange, the data shows:
The cape ship market started strong last week;
The Panamax ship market is steadily rising, with a strong trend;
In the extreme and ultra flexible ship markets, the Asian market has shown remarkable performance, while rents in the Atlantic sector remain low;
There is less trading activity in the market for flexible ships, and market sentiment is relatively low;
In the refined oil tanker market, LR1 and LR2 tankers in the Middle East Gulf region have shown improvement;
The freight rates of liquefied petroleum gas ships in the Atlantic sector have increased.
The following is the full report:
Cape type vessels
After the end of the UK public holiday, the cape ship market saw a strong start last Tuesday. Driven by increased mining activities and a significant increase in freight volume in the Pacific region, rental prices in both the Pacific and Atlantic sectors have risen. The rental price of C5 route increased by $0.84 to close at $11.650. The North Atlantic has also experienced significant growth. Affected by the tightening of transportation capacity in this sector, the rental price of the C8 route has risen by $10142 and closed at $27571; The rental price for the C9 route also climbed $4125 to close at $49500. On Wednesday, this positive momentum continued, although trading activity in the Pacific region slightly decreased, it still showed an upward trend. Last week, as the weekend approached, trading activity in the Pacific sector increased, but the Pacific market tended to calm down and freight volume remained relatively stable. The Atlantic Plate experienced slight fluctuations, leading to a slight decline in overall freight rates. Overall, last week, the Baltic Cape route closed at $27301, a slight decrease of $937 from the previous week.
Panamax vessels
Last week, the Panamax ship market steadily rose, with little sign of weakening in its strong trend, and the fundamentals seem to be very favorable for shipowners. The Atlantic Plate is mainly a outbound route, with stable mineral transportation starting from the east coast of the United States and strong demand for grains starting from the north coast of South America. It is reported that a ship with a load capacity of 81000 tons and a scrubber was handed over to Gibraltar, passing through northern South America and returning to Singapore Japan at a rental price of $31000. There are few reports on transatlantic routes and very few business activities. The Asian market has seen a significant increase. Due to exceptionally strong demand in the Nicaea region and a surge in trading activities, the P5 route rental price has increased by $2662 compared to last week. There are reports that multiple ships that have been delivered to Southeast Asia, passed through Indonesia, and returned to India have all been sold at a price of 20-21000 US dollars. Limited reporting on the rental market. At the beginning of last week, it was reported that a ship with a deadweight of 81000 tons was delivered to China, with a lease term of 5 to 7 months and a transaction price of 20000 US dollars.
Extreme Flexibility Ship/Ultra Flexibility Ship
Last week, the performance of the Asian market was extremely remarkable. Strong demand in Indonesia has boosted shipowners’ expectations, leading to an increase in rental prices. This momentum has further spread to the North Asian region. In contrast, under the influence of multiple holidays, rental prices in the Atlantic sector remain relatively low. Insufficient demand in regions such as the Mediterranean and the Gulf of America on the European continent has weakened positive market sentiment. The demand for fixed term rent in the market remains strong. As for the one-year term lease, it is reported that a newly built ship with a load capacity of 64000 tons was sold at a rental price of $19000, while another ship with a load capacity of 57000 tons was sold at a rental price of $15000. In the Atlantic Plate, a 60000 deadweight ton ship was delivered in the eastern Mediterranean to the Gulf of America for a rental price slightly exceeding $13000. Another ship with a load capacity of 61000 tons will transport waste from the Nordic continent to the Eastern Mediterranean, and the transaction will be made at a rental price of $15000. In Asia, a 52000 deadweight ton ship departed from Southeast Asia, passed through Indonesia, and returned to China at a rental price of $19000. Further north, a 61000 deadweight ton ship departed from China and traveled back and forth between the North Pacific region, trading for slightly over $17000.
Flexible ships
Last week, due to holidays in both sectors, trading activity was low, new inquiries were limited, and market sentiment was relatively low. Shipowners in mainland Europe and the Mediterranean region are still facing pressure. There are reports that a 32000 deadweight ton ship is sailing from Ananda to Chanacale, passing through the Black Sea to transport grains to Roses, and is being sold at a rental price of $8250. A 39000 deadweight ton ship set sail from Tyne and sailed from Bremen Port to the East Coast of the United States, transporting timber for a rental price of $14500. A 37000 deadweight ton ship is sailing from the eastern Mediterranean to Brazil, planning to transport fertilizers for a price slightly over $7000. In contrast, the Asian market has performed positively. A 35000 deadweight ton ship is scheduled to transport minerals from the port of Hedland via Australia to China, with a rental price of $22000. A 34000 deadweight ton ship sailed from Caofeidian to Vietnam via North China, transporting metallurgical coke, and was sold at a rental price of $15500. The trading activities in the Arabian Gulf region are also more frequent. A 35000 deadweight ton ship sailed from Dohar to Madagascar, carrying bagged goods, and was sold at a rental price of around $13000.
product carrier
LR2 oil tanker
LR2 tankers in the Middle East Gulf region performed well last week. The freight index of 75000 ton oil tankers on the TC1 route from the Middle East Gulf to Japan increased by 27.2 points and closed at WS230 points; The rental price of a 90000 ton oil tanker on the TC20 route from the Middle East Gulf to the UK mainland Europe has also increased, rising from $6.02 million to $6.51 million. LR2 oil tankers from the Mediterranean to the east in the area west of the Suez Canal have weakened for the third consecutive week. The rental price of TC15 route decreased by $125000 and closed at $3.2 million.
LR1 oil tanker
Last week, the LR1 tanker market in the Middle East Gulf region also improved. The freight index of 55000 ton oil tankers on the TC5 route from the Middle East Gulf to Japan has risen from WS222.5 points to WS230.6 points. The rental price of a 65000 ton oil tanker on the TC8 route from the Middle East Gulf to the UK mainland Europe increased by $221000, closing at $5.1 million. The 60000 ton oil tanker on the ARA to West Africa route between the UK and the European continent fell again last week. The TC16 route freight index fell another 10.6 points to close at WS156.4 points.
Medium oil tankers
Last week, the MR cruise business in the Middle East Gulf region began to recover. The freight index for the 35000 ton tanker on the TC17 route from the Middle East Gulf to East Africa increased by 15 percentage points compared to the previous week, closing at WS386.4 points.
The rental prices of MR oil tankers in the UK and mainland Europe have also rebounded, which is welcomed by shipowners. The freight index for the 37000 ton tanker on the ARA to US Atlantic Coast TC2 route rose 11.3 points to close at WS199.4 points, with Baltic equivalent time charter rates returning to $20000 per day. The freight index for the 37000 ton tanker on the ARA to West Africa TC19 route also rose, rising from WS198.4 points to WS219.4 points.
Last week, the US Gulf MR oil tankers continued to maintain a positive growth trend. The freight index for the 38000 ton tanker on the TC14 route from the US Gulf to the UK mainland Europe rose another 25.7 points to close at WS170.4. The freight index for the 38000 ton tanker on the TC18 route from the US Gulf to Brazil also increased by 20.7 points, closing at WS245.4 points; The rental price of a 38000 ton tanker on the TC21 route from the US Gulf to the Caribbean Sea has risen by 40% again, closing at $860714.
Flexible oil tanker
Last week, in the Mediterranean region, the 30000 ton tanker on the TC6 cross Mediterranean route rose 20 points again, closing at WS265 points. In Northwest Europe, the rental price of a 30000 ton tanker on the TC23 route between the UK and mainland Europe also increased significantly by 31.1 points, closing at WS245 points.
VLCC oil tanker
Last week, the VLCC tanker market continued to grow. The freight index for 270000 ton oil tankers on the Middle East Gulf to China route increased by approximately 5.5 points, closing at WS72 points. The equivalent time charter rent for round-trip voyages based on the Baltic standard vessel type is $50617 per day.
In the Atlantic sector, the freight index for 260000 ton oil tankers on the West African to China route increased by about 7 points to close at WS74.72 points, with equivalent time charter rent for round-trip voyages of around $54000 per day. The rental price of a 270000 ton oil tanker on the US Gulf to China route has increased by $155000, closing at $9275000, with a round-trip equivalent time charter rent of $47548.
Suezmax tankers
Last week, there was a positive rebound in the Suezmax oil tanker market in West Africa. The freight index for 130000 ton oil tankers on the Nigerian to British Continental route increased by 10 points to close at WS110.94 points, with a round-trip equivalent time charter rent of $43592 per day. In the Mediterranean and Black Sea regions, the freight index for 135000 ton tankers on the CPC to Mediterranean route remains stable at around WS110-112.5 points, with equivalent time charter rates for round-trip voyages of approximately $41000 per day. In the Middle East region, the freight index for 140000 ton tankers on the route from the Gulf of Middle East to the Mediterranean around the Suez Canal remained unchanged, closing slightly below the WS95 point.
Afra type oil tanker
In the North Sea region, the freight index for 80000 ton oil tankers on cross British mainland routes slightly increased by 1 point last week, closing at around WS144-145 points. The equivalent time charter rent for round-trip flights based on the Cape Hood to Wilhelmshaven route is slightly higher than $44500.
In the Mediterranean market, the freight index for 80000 ton oil tankers on cross Mediterranean routes remains stable at around WS165-166 points, with equivalent time charter rent of approximately $46700 per day based on the round-trip route from Port Jeyhan to Port Lavala.
On the other side of the Atlantic, the freight index for the 70000 ton tanker on the TD26 route from the east coast of Mexico to the Gulf of America remained relatively stable, closing at around WS171.5 points, with an equivalent time charter rent of approximately $40200 for round-trip voyages. The freight index for the 70000 ton tanker on the TD9 route from Covenias to the US Gulf closed at WS166 points, with equivalent time charter rates for round-trip voyages slightly higher than $35800 per day. However, since last Friday, the freight index for 70000 ton tankers on the transatlantic TD25 route from the US Gulf to the UK Continental Europe has fallen by a total of 14 points, closing at WS183.06. Based on an equivalent time charter rent of $43261 per day for a round-trip voyage from Houston to Rotterdam, this has temporarily curbed the enthusiasm of European air carriers to travel to this route.
Liquefied natural gas vessels
Last week, the liquefied natural gas spot market was very calm, with almost no fluctuations in the freight index of the three routes. The rental price of the 160 cubic meter ship type on the BLNG2 route increased or decreased by only $41. Although there are inquiries for freight business in the entire market, including some ongoing exploratory negotiations, there is not much interest in FOB goods, which ultimately led to these negotiations being fruitless.
The rental price of the Australia Japan BLNG1 route is relatively stable, with a 174 cubic meter ship type falling only $654 to close at $45906, while the 160 cubic meter ship type rose by $1478 to close at $35395. The rental prices for the Houston Continental BLNG2 route have also remained relatively stable, with a 160 cubic meter vessel model rising by $41 to close at $32280, while the rental fees for the 174 cubic meter vessel model have slightly decreased to close at $42244. In contrast, there has been some interest in freight business on the Houston Japan BLNG3 route, but this has not had a substantial impact on rental prices. The 174 cubic meter ship type also fell by $511 to close at $48887, while the 160 cubic meter ship type rose by $689 to close at $38347. At present, the price difference between the two types of ships has been further narrowed, ranging from $10000 to $13000.
The fixed-term rental trading market is relatively calm. Among them, only the one-year rent increased by $167, closing at $79667; The rent for the June and 3-year periods remained unchanged at $74600 and $83100, respectively.
Liquefied petroleum gas vessel
Last week, the rental prices for the BLPG1 route between Rastanura and Chiba Port continued to strengthen, rising by a total of $9.428 at the end of the weekend, closing at $79.714. The equivalent time lease rental income was $61286 per day, mainly due to the signing of some charter contracts and voyage delays. Due to many shipowners turning their attention to the expensive Western market, transportation capacity has decreased, but freight business is still ongoing, and rental levels are expected to remain stable. It is expected that some transactions reached in the Middle East region will further boost market sentiment by the weekend.
The freight rates for the Atlantic sector have increased, with the rental price for the Houston to Chiba BLPG3 route rising by $7.0 to close at $140.286, equivalent to a time rent of $65805 per day. The sustained delay in the Panama Canal and reports that transit quotas have once again been auctioned at high prices are driving up market prices. Although the trading on the BLPG2 route has been relatively calm, there are still signs of improvement: rental prices rose by $6.4 overall last week, closing at $77.8, equivalent to a time rent of $83241 per day.