Platts 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 Platts $/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 Platts 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.
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Capesize freight rates continued to fall on March 28 as market sources shared that discussions were scant and the market was weighed by the negative sentiment on the forward freight agreement rates.
"Spot cargoes from the Western Australian miners still felt sluggish, and this [combined with] less support from other business from Indonesia and East Coast Australia led to fairly slow activity," a shipbroker source said.
A second shipbroker source shared a similar view and noted that the Western Australia to China freight rates fell on the lack of cargo support, and there were relatively more ships available.
"The Pacific market felt slow today, and offers were said to be close to the last done levels from the previous days," a shipowner source said.
The shipowner source added: "And, so I think that the charterers may be able to pull the last done freight rates lower."
On the day, Rio Tinto was heard to have fixed a Capesize ship to move 170,000 mt (plus/minus 10%) of iron ore from Port Dampier in Western Australia to Qingdao at $7.80/wmt for April 13-15 laycan.
Pacbulk was heard to have fixed a Capesize ship to move 170,000 mt (plus/minus 10%) of iron ore from Port Dampier in Western Australia to Qingdao at $7.90/wmt for April 12-14 laycan.
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 $7.85/wmt March 28, down 55 cents/wmt from March 27.
Market sources concurred that spot activity in the Atlantic basin remained relatively lackluster but felt there was possibly still support from freight rates for forward laycans, which mirrors the contango on the forward freight agreement rates.
"I think the market had been weighed by sentiment, which saw a sell-off on the [forward freight agreement rates]," a ship operator source said.
The first ship operator source also added, "While there are cargoes around, there does not appear to be a rush to fix."
The first shipbroker source also opined that the market would need to see more spot activity in the Atlantic basin to absorb the remaining ballasters in order to arrest the downslide freight rates.
Late March 27 out of Brazil, Trafigura was heard to have fixed a Capesize ship to move 170,000 mt (plus/minus 10%) of iron ore from Sudeste to Qingdao at $20.75/wmt for April 15 laycan onward.
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 $19.75/wmt March 28, down 55 cents/wmt from March 27.
Out of South Africa, COFCO was heard to be seeking a Capesize ship to move 170,000 mt (plus/minus 10%) of iron ore from Saldanha Bay to Qingdao for April 11-17 laycan.
Platts assessed the freight rate for a Capesize ship to move 170,000 mt (plus/minus 10%) of iron ore from Saldanha Bay in South Africa to Qingdao at $15/wmt March 28, down 25 cents/wmt from March 27.
Platts is part of S&P Global Commodity Insights.
