VLCC
As we have seen time and time again, the Atlantic market has been the driver of rates pushing numbers further into the black for VLCC owners. This week is no different as the benchmark TD22 route pushed up through the 10mill mark. Natural candidates for the mid-November cargoes ex USG remain limited and have helped the other markets rise accordingly. The MEG November program hit the ground running on Monday. The position lists are looking a little more ample later in the month but for very early November, in a word, tight, as owners will make the most of the obtained momentum. It remains to be seen if owners are able to cling on to current market levels as production cuts are projected for November.
Suezmax
To start in the MEG, it’s been a very busy week as the fuel and crude cargoes came thick and fast for end October and early November dates thinning the position list significantly for these dates. TD23 lifted some 10 points or so and is now in the mid 80s, and MEG/East has lifted to the WS 120 mark, some 20 points higher than last week. Moving into the second half of the 1st decade in the MEG, it feels like sentiment should hold, if we see a drop off in activity then expect some downward pressure to start emerging. The Atlantic markets also surged on the back of the Aframax and Suezmax being incredibly busy ex USG. Rates have moved up to WS 117.5 level for TD20 voyages and look to be steadying somewhat as the rush of USG cargoes seems to be slowing down. We don’t expect a huge drop off in levels in West Africa just yet, but it does feel like a small downward correction is likely, given how rapid the rates moved up.
Aframax
Quite a few owners with vessels open in the North Sea have ballasted away to seek better returns elsewhere on the western hemisphere. The list has thinned out for normal North Sea candidates, and owners trading in the area have managed to push rates upwards. The firm trend looks to continue into end month October loading dates, and we will see higher than last done be paid this week.
Owners in the Mediterranean/Black Sea market held back last week. Owners pushed the market 80-100 points above last-done levels on the back of a very firm USG market. Tonnage list is slowly starting to balance out a bit and we might see rates finding equilibrium around WS 200 levels now, but the market is still moving. Sentiment is still strong, and owners will try to prevent rates from falling.
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Source : Fearn pulse
