Weekly Tanker Report – Week 38, 2020

By
Mfame Editor
-
1230

The Baltic Briefing has issued the tanker report for the 38th week of this year. The report dated 18th September 2020 provides a valuable insight into this week’s tanker market dealings, freight rates, and charter activities.

VLCC

Another lacklustre week has seen a slight downturn in rates for most of the routes.

  • The Middle East market has seen rates drop two to three points as 270,000mt AG/China is now W35, while 280,000mt to USG via the cape/cape routing is assessed at a shade under WS19.
  • In the Atlantic region 260,000mt West Africa to China voyages saw rates dip to WS38.
  • Meanwhile, for 270,000mt US Gulf/China rates improved by just over $100k to $4.93m as a Chinese charterer is reported to have paid $5m for a trip loading from St Croix.

Suezmax

  • Rates for 135,000mt Black Sea/Med again saw a very slight weakening of about a point to WS46.5.
  • For the 130,000mt West Africa/UKContinent market shifted 2.5 points down at WS35, as a major oil company had an owner of a 16-year-old vessel agree to this level and the position list remaining over-populated.
  • The 140,000mt Middle East Gulf to Med market took another hit this week with rates being assessed 1.5 points down at WS15.5.
  • ENI were reported to have taken a ship at WS14.75, demonstrating the market weakness here.

Aframax

  • In the Mediterranean market, the 80,000mt Ceyhan/Med trade saw rates pushed down 2.5 points to WS57.5.
  • In Northern Europe, the market for 80,000mt Cross-North Sea had a weaker feel to it with rates assessed between WS72.5-75, marginally down from last week.
  • Meanwhile 100,000mt Baltic/UKC market lost a couple of points to just under WS40.
  • On the other side of the Atlantic rates for 70,000mt Carib/USGulf remained static at WS55. It was a similar story on 70,000mt USG/UKC where rates remained at WS50.

Clean

In almost all areas, owners have been faced with falling markets.

  • In the 75,000mt Middle East Gulf/Japan trade, rates are down around five points, sitting now close to WS70.
  • While in the LR1 trade, the market for 55,000mt to Japan has fallen 7.5 points to WS65.

A week ago, the market for 37,000mt UKC/USAC stood at close to WS112.5. Whereas today owners are looking at rates of barely WS90 and a run to Tema only paid WS105.

The situation is not helped by the number of ballasters from USA where the 38,000mt backhaul trade to UK-Continent is hovering at a paltry WS60 – down 2.5 points from the start of the week.

  • For a trip to Brazil rates have eased further with the market here now hovering just above WS82.5, in contrast to the WS93.75 at the start of the week.
  • The 30,000mt clean cross-Med trade has come under relentless downward pressure and is now in the very low WS130s, representing a drop of just over 20 points. Brokers feel there is potential for further softening here.

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Source: Baltic Exchange