VLCC
The MEG market is climbing. Unconfirmed rumours of WS 65 done MEG/China require some checking, but rates are certainly around that level. Free of cargo tonnage figures today reveal there are only around 28 ships in total, of which 25 are modern. The last time we had tonnage sub 30 total ships was mid-November when TD3c was up at WS 74. Not suggesting we are heading there imminently, but further upticks likely. Ships are being fixed on subs with no details as charterers look for suitable counterparts, but owners won’t be considering numbers lower than last done.
In the Atlantic, WS 65 is on subs West Africa/East early March dates and a few more cargoes looking suggest further upward pressure in West Africa, the USG is not firing at present, but a lighter tonnage list should help. The USG was busy yesterday on Aframaxes (although Atlantic Suezmaxes are offering little support but likely bottomed). Aframax owners are holding the line there for now.
Suezmax
The East market has bottomed with WS 120 on subs for a MEG/East run whilst BOT/UKCM is conference at WS 80’ish via Good Hope. Further support emanating from VLCC’s.
In the Atlantic, USG Aframaxes are showing signs of life with tends to act as a bellwether for the wider Atlantic Suezmax market, therefore we are calling TD20 close to the bottom at circa WS 102.5-105.
TD6 will trade WS 125-130 with no downside.
Aframax
A slow start to the week activity wise with stems out to middle of the month being covered mainly under own program. Sentiment is weaker but relatively untested. US markets have picked up in activity fixing out to end 2nd decade which will encourage tonnage to ballast unfixed.
Plenty of activity in the Mediterranean this week but with an abundance of tonnage rates moved in a softer trend. Enquiry ex CPC has been somewhat slow with a correction due as Turkish Straits delays decrease and Suezmaxes continue to weaken. Looks as though it might take some time for owners to turn the tide in the Mediterranean as 2nd decade of February will soon be sold-out.
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Source : Fearn pulse
