Rates Drop News

The Baltic Exchange's dry bulk sea freight index dipped on Friday, registering its biggest weekly decline since July 2020, pulled lower by weakened rates across vessel segments.The overall index, which factors in rates for capesize, panamax and supramax vessels, was down 54 points, or 2%, to 2,715, its lowest since June 10. The main index suffered a weekly loss of 22.8%.The capesize index rose 59 points, or 1.8%, to 3,280, snapping an 11-session losing streak. It logged a weekly decline of 24.6%.Average daily earnings for capesizes…

The Baltic dry index, which tracks rates for ships ferrying dry bulk commodities and reflects rates for capesize, Panamax and supramax vessels, shed 16 points, or 1.1%, at 1,488.The index registered a small 0.5% weekly gain. The capesize index fell 46 points, or 2%, to 2,218. However, the capesize index registered a 2.7% weekly gain.Average daily earnings for capesizes, which typically transport cargoes of 170,000 tonnes to 180,000 tonnes including iron ore and coal, declined $381 to $18…

The Baltic Exchange's main sea freight index continued its losing streak on Monday, falling to its lowest in more than six months as demand across vessel segments dropped.* The Baltic index, which tracks rates for capesize, panamax and supramax vessels that ferry dry bulk commodities, fell 20 points, or 1.8%, to 1,103, its lowest since June 17.* The main index was down for a fourteenth-straight session.* The capesize index dipped 4 points, to 1,954 — its lowest in more than six months.* Average daily earnings for capesizes…

The global port management company International Container Terminal Services Inc.(ICTSI) said yard utilization at its Manila port dropped 58 percent in June despite a series of holiday periods and low trucking activity.The Manila International Container Terminal (MICT), ICTSI flagship, recorded the drop in utilization rates despite recording its all-time highest throughput over a four-month period.Philippines-headquartered port and terminal operator said that this follows the 70 percent utilization rate recorded in April, down 20 percent from 90 percent in January after private sector partners and  the government signed a manifesto last March calling for the efficient utilization of container terminals.

Unipec charters 20 VLCCs for West Africa, MidEast cargoes; China's oil demand to climb 3.4 pct this year - CNPC. Freight rates for very large crude carriers (VLCCs) are expected to remain stable next week as buoyant chartering activity from the Middle East is offset by the large number of supertankers available for charter, ship brokers said. "We're going to see rates holding at current levels," a European supertanker broker said on Friday. "Saudi Arabian cargoes for February loading should be out on Monday. Charterers might be a bit nervous, trying to fix as soon as they see the cargoes in case rates climb. But it looks like there's enough ships to keep the market in check," the supertanker broker said.

Falling shipping freight rates for transporting containers from Asia to Northern Europe on Friday showed there was no traditional surge in cargo exports from China ahead of the Chinese New Year, indicating a bleak outlook for the industry. Spot freight rates on the world's busiest trade route have halved since the start of the year after falling 26 percent to $545 per 20-foot container (TEU) this week -- a level not considered to be commercially viable for most vessels. Container rates usuaally rise ahead of the Chinese New Year, which this year begins on Feb. 8, as companies try to ship goods to Europe before factories close and millions of workers travel home to celebrate for at least a week.

Rates from Australia to China fall to 14-year low; Brazil to China capesize rates drop to 7-year low. Freight rates for capesize bulk carriers on key Asian routes, which fell to a more than seven-year low on Wednesday, could nudge lower or hold around current levels as too many ships chase too little cargo, brokers said. "It seems like the market is at the bottom," said a Shanghai-based capesize broker on Thursday. "We're seeing some Pacific cargo today. Fortescue Metals and Rio Tinto are all in the market. "We see the Pacific market at around $3.20 a tonne for a voyage from Western Australia to China," the broker said. That is the lowest level since November 2001.

Shipping freight rates for transporting containers from ports in Asia to Northern Europe fell 31 percent to $313 per 20-foot container (TEU) in the week ended on Friday, one source with access to data from the Shanghai Containerized Freight Index told Reuters. It was the third consecutive week of falling freight rates on the world's busiest route. Rates are now on lowest level since June 19 and widely seen as a loss-making level. Container spot freight rates have so far increased in 8 weeks this year but fallen in 29 weeks. In the week to Friday, container freight rates dropped 30.1 percent from Asia to ports in the Mediterranean, fell 6.4 percent to ports on the U.S. West Coast and were down 4.5 percent to ports on the U.S. East Coast.

Shipping freight rates for transporting containers on the world's busiest route have dropped by more than 20 percent for the second consecutive week and are now at their lowest level since July 24. Spot rates fell 22.4 percent to $456 from ports in Asia to Northern Europe after a fall of 22.9 percent last week, one source with access to data from the Shanghai Containerized Freight Index told Reuters. Container freight rates have so far increased in 8 weeks this year but fallen in 28 weeks. In the week to Friday, container freight rates plunged 26.9 percent from Asia to ports in the Mediterranean, fell 5.6 percent to ports on the U.S. West Coast and were down 9.1 percent to ports on the U.S. East Coast. Average rates for 2015 are $659 per TEU compared with $1,171 last year.

Shipping freight rates on the world's busiest route, from Asia to Northern Europe, fell by the largest percentage amount since 2008, reflecting wild volatility in the market as vessel operators continue to wrestle with overcapacity. Rates for transporting containers from Asia to Northern Europe plunged 32.5 percent to $444 per 20-foot container (TEU) in the week ended on Friday, a source with access to data from the Shanghai Containerized Freight Index told Reuters. Shipping consultants Drewry reckon the Shanghai-Rotterdam and Shanghai-Genoa routes are the two most volatile among 11 that they track, with rates rising $1,000 or more per TEU over just a few weeks and then falling back down again.

Shipping costs plunged to almost the lowest on record following tumbling demand for coal in China and weakening growth in the nation’s iron ore purchases, reports Bloomberg. The Baltic Dry Index, which tracks freight rates for ships carrying raw materials, has slumped to its lowest point in 29 years, hit by a shipping glut, falling commodity prices and declining import demand from China. The BDI fell to 577 this week, its lowest level since July 1986, and a far cry from its peak of 11,793 in 2008. Reversing growth of 16 percent the year before, China’s seaborne coal imports slid 10 percent in 2014, says Clarkson Plc, the world’s largest shipbroker.

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, continued its slide on Monday, hitting a new near-three decade low as rates for all four vessel segments fell. The overall index, which factors in average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, was down 18 points, or 2.96 percent, at 590 points, the lowest since August 1986. "The dry bulk market has seemingly gone dead silent, with worries circulating amongst many owners that there is little reason to operate vessels under the currently prevailing freight rates," George Lazaridis, head of market research and asset valuations at Allied Shipbroking, said in an weekly shipping market note published on Monday.

Shipping freight rates for transporting containers from ports in Asia to Northern Europe fell 20.5 percent to $934 per 20-foot container (TEU) in the week ended on Friday, a source with access to data from the Shanghai Containerized Freight Index told Reuters. It was the largest ever weekly decline on the world's busiest freight route since the index began recording rates in 2009. A level below $1,000 is widely seen as a loss-making level for container shipping companies. Container freight rates have so far increased in 12 weeks this year but fallen in 33 weeks. Maersk Line, the global market leader with nearly 600 container vessels and part of Danish oil and shipping group A.P.

Shipping freight rates for transporting containers from ports in Asia to Northern Europe fell by 10.4 percent to $1,175 per 20-foot container (TEU) in the week ended on Friday, one source with access to data from the Shanghai Containerized Freight Index told Reuters. The fall came after last week's jump of 88 percent on the world's busiest route. Container freight rates have so far increased in 12 weeks this year but fallen in 32 weeks. "Within just one week carriers have witnessed their most recent general rate increase erode by 22 percent, reflecting how ineffective such increases are at improving revenue streams in the medium or long term," wrote container derivative trader Richard Ward from Freight Investor Services in London.

Shipping freight rates for transporting containers from ports in Asia to Northern Europe jumped 88.2 percent to $1,312 per 20-foot container (TEU) in the week ended on Friday, one source with access to data from the Shanghai Containerized Freight Index told Reuters. The increase reversed the weekly declines that have lasted the past 12 weeks and saw rates drop to a yearly low of $697 per TEU. Maersk Line, the global market leader with nearly 600 container vessels and part of Danish oil and shipping group A.P. Moller-Maersk, said on Oct 17 it intended to hike rates by $900 with effect from Nov 1. In the week to Friday, container freight rates rose 51.3 percent Asia to ports in the Mediterranean, fell by 5.7 percent to ports on the U.S.

Long-range clean tanker rates rallied on Wednesday as buoyant demand for cargoes reduced vessel availability with expectations of further gains. Long Range 1 tankers, carrying 55,000 tonne loads from the Middle East Gulf (MEG) to Japan, reached W111.64 in the Worldscale measure, or $9,721 a day when translated into average earnings, its highest since mid December last year. That compared with W109.28 or $8,920 a day on Tuesday and W102.86 or $6,779 a day last Wednesday. Larger Long Range 2 or LR2…

Atlantic clean tanker trades have been hit by refinery maintenance schedules in the Caribbean, while bouyant Asian trades will be boosted further by earthquake disruption at Indian refineries, brokers said. "Caribs upcoast rates have really slipped," said a U.S. tanker broker. "A lot of refineries are shut down for maintenance and to get themselves ready for increasing gasoline demand." He cited the Hovensa and Citgo refineries as two of those that had interrupted products output. The market for 30,000 tonrs from the Caribs to New York currently stands at W384, having fallen 10 points since last Friday. Transatlantic rates have also slumped, now standing at around W394, compared to W414 at the end of last week.

Pacific Panamax freight rates have dropped sharply in line with weaker Asian Panamaxes, brokers said. Average rates for Pacific round voyages fell to $9,600 daily, down $169 from Monday, and down $217 from last week. Brokers said that the result will make Panamax owners reluctant to trade fronthaul business without negotiating premium rates. The declining rates could deter owners from moving ships into the Pacific, but brokers said that if Panamax owners re-entered the Atlantic, this could support Pacific rates. For example, the Panamax for the 1986-built 61,013 dwt Andromeda was for Passero delivery in May for a trip via Brazil. If re-delivery took place in the Atlantic the freight rate would be $10…

The Baltic Panamax Index tumbled further on Thursday, with falls reported for the latest benchmark Panamax grain rates, brokers said. Brokers said a U.S. Gulf-to-Japan fixture had been chartered to load 54,000 tons of heavy grains in early to mid-September at a rate of $18.75 per ton based on no combination discharge ports. Earlier fixtures had indicated a weakening market, but the latest benchmark Panamax grain rate was considerably lower than previous reports, they said. In comparison, a charter for the benchmark grain route was reported in mid-July at a rate of $19.50 per ton for early- to mid-September loading. Brokers also reported a Panamax for a North Pacific-to-Taiwan run…

Asian tanker rates started heading downhill this week after two months of stability, Singapore brokers said. "It's softened quite a bit since last week," said one clean tanker broker from a major international broking house. He pegged the benchmark route from Singapore to Japan at W285 ($18.67 per ton) for 30,000 ton cargoes. "Older tonnage, non-approved tonnage, might go for cheaper, say W280," he added. Brokers said the route had remained stable at W295 ($19.33 per ton) since the start of May, but fell to W290 on Friday before weakening further over the weekend. London tanker broker Gibsons warned on Friday of a downturn in clean tanker trades. "Until the volume of product to be shipped increases and longer haul trade returns, the forecast remains bleak in the short-term," it said.

Clean tankers in the intra-Asian trades have suffered an eighth week of stagnant trading, causing rates to slip another 10 points to W240 ($15.69 per ton), Singapore brokers said on Wednesday. "The panel rate (judged by a panel of six brokerages) is around W250, but we think it's much nearer W240 at the moment," said a broker. The benchmark trade from Singapore to Japan on 30,000 ton tankes almost touched W300 in June ($19.62 per ton). Another Singapore broker pegged the trade at W245 and said to ignore rumors of a fixture this week at W230. "There's just very little enquiry for ships from Singapore," said the broker. Singapore brokers were uncertain of the underlying reason…

Panamax freight rates touched their lowest levels in years and prospects for a quick recovery in the sector are remote, shipbrokers said on Wednesday. Overall, panamax minerals demand remains light and grain exports are not enough to support panamax freight rates, they said. Initial hopes to see the market bounce from the existing low levels had faded after reports that new enquiry was not strong enough to balance the market against the surplus ship supply, shipbrokers said. Brokers said market talk suggested resistance against pushing rates for October and November positions of the US Gulf to Japan panamax heavy grain benchmark route into the low $18 per ton range.