Our TCE indexes are the most accurate, independent and transparent measure of the daily revenue of dry bulk vessels. The three indices are the Cape T4, the KMAX9 and the APSI 5. They represent global averages for both Capesize and Kamsarmax vessels, while the APSI 5 is the Asia-Pacific Supramax Index. For each vessel size, values for both scrubber-fitted and non-scrubber-fitted tonnage are published each day.
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Platts TCEs are derived from Commodity Insights $/mt voyage rate assessments by dividing the net revenue, minus the costs for port charges and bunkers consumed, by the voyage duration. The weights are then applied are based on actual ton-mile demand observed for each sector using Commodity Insights trade flow software cFlow, over a three-year period from Jan 1, 2017 to Dec 31, 2019. These weights are then assigned to the TCE rates to arrive at the weighted average index. You can find more details with regards to the methodology in our subscriber notes and specifications guide for global freight.
Subscriber Note - Cape T4 Index >
Capesize freight slid further on April 25 amid falling freight derivative (FFA) rates during Asian trading hours.
Sources pointed out that rates exchanged in the Pacific slipped on the day, with some baffled amid healthy cargo volumes in the Pacific.
"The Pacific tonnage list looks very long," a shipbroker source said, suggesting that the surfeit of Pacific ships potentially outweighed the cargoes available, resulting in rates exchanged and heard from fixtures on the day, to trend lower.
Out of the Pacific, there were plenty of iron ore cargoes among ship operators in circulation, while the trio of Western Australia iron ore miners, BHP, Rio Tinto and FMG were all seeking tonnages on the day.
Initial indicative Capesize offers heard in H1 Asian trading hours from Western Australia to China were around $10.75/wmt. As the trading day progressed into the second half, offers softened further to around the mid-$10/wmt.
Nippon Yusen Kaisha, or NYK, was then heard to have fixed a Capesize ship from Western Australia to China for a May 16-25 laycan but rate details could not be confirmed.
Subsequently, indicative Capesize bids from Western Australia to China were heard around $9.90/wmt. In late Asian trading hours, Rio Tinto was heard to have taken a Capesize ship from Dampier to Qingdao for a May 12-14 laycan in the low $10/wmt. Similarly, both BHP and FMG were also heard to have taken a Capesize ship each from Port Hedland to Qingdao for May 13-15 and May 10 onward laycans, respectively, also in the low $10/wmt.
Platts assessed the freight rate for a Capesize ship to move 170,000 mt (plus/minus 10%) of iron ore from Port Hedland to Qingdao at $10.05/wmt April 25, down 45 cents/wmt from April 24.
Meanwhile, the Atlantic market continued to trend lower despite a lengthier cargo list out of Brazil and West Africa. Sources pointed out that many charterers were circulating cargoes with June-loading dates. However, there were sparse exchanges to conclude fixtures from Brazil to China during Asian trading hours, according to sources.
Among Brazil cargoes with May loading dates, ST Shipping was heard seeking Capesize ships from Tubarao to Qingdao, with Colombia loading option, for May 22 onward laycan. An indicative bid of $26.60/wmt was heard for moving 180,000 mt (plus/minus 10%) iron ore from Itaguai to Qingdao for May 23 onward laycan.
Platts assessed the freight rate for a Capesize ship to move 170,000 mt (plus/minus 10%) of iron ore from Tubarao to Qingdao at $25.50/wmt April 25, down 35 cents/wmt from April 24.
Out of South Africa, an indicative offer in the mid-$19/wmt was heard for moving iron ore from Saldanha Bay to Qingdao for early May-loading dates.
Pacbulk was heard with a 170,000-mt (plus/minus 10%) coal cargo from Richards Bay Coal Temrinal to Qingdao for a May 4-10 laycan.
Platts assessed the freight rate for a Capesize ship to move 170,000 mt (plus/minus 10%) of iron ore from Saldanha Bay to Qingdao at $18.95/wmt April 25, down 55 cents/wmt from April 24.
Platts is part of S&P Global Commodity Insights.
