VLCC Market: Charterers Control Amid Ship Glut
VLCC: It was a quiet week for the VLCC market around the globe. A glut of ships in the AG allowed charterers to dictate the rates as they covered their stems as TD3 AG>China ended the week at ws46.35 (270K MT) down from ws47.5 at the start of the week. Similarly, in West Africa, a lack of activity caused WAF>USG (260k MT) and WAF>FEAST (260k MT) to remain constant with routes heading to the USG remaining at ws52.5 through the week and routes going east dipping ever so slightly from ws53.5 to ws53. In the USG, with Hurricane Beryl disrupting much of the week and lack of inquiry in other areas such as West Africa and Brazil also lead to weaker rates in the USG. USG>UKC (270k MT) ended at $3.0m and USG>China (270k MT) ended the week at $7.3m.
Suezmax Market: Flat Rates with Softer Undertones
SUEZMAX: The TD20 route held flat on the week at ws100 but has a bit of a softer undertone going into the weekend off the back of a build tonnage and some skittish sentiment brewing across the Atlantic basin. In the Americas, Suezmax inquiry was steady as both local and inbound Ballasters continue to get absorbed from the tonnage list leaving fundamentals in a more balanced state for the remainder of 2nd half July fixing window.
However, additional tonnage relief does appear in the end/early window which should keep sentiment in check. Rates for USG>TA traded up most of the week but were tested on a very end July USG export at ws85 levels (basis 145k MT). Guyana>TA held its ground at ws100 102.5 levels (basis 130k MT) for most of the week and should take a similar track to the TD20 route. The USG>EAST trade hovered in place holding at $5.2m levels for Singapore and $5.8m levels for Long-East respectively. BDTI – TD20 ended the week settling at 99.17 which is up (-0.56) from this time last week.
Aframax Market: Steady Despite Hurricane Disruption
AFRAMAX: There was early optimism that the disruption caused by Hurricane Beryl would lead to an increase in rates this week in the Americas. However, despite a thin tonnage list, a good portion of cargos were fixed by VLCC owners resulting in USG>UKC (70k MT) hovering around ws182.5 throughout the week. Rates for ECM>USG (70k MT) were healthier however, managing to rise from ws180 at the beginning of the week up to ws205 by the end. Elsewhere in the world there wasn’t much movement although AG>SPORE (80k MT) did creep downward from ws177 to ws171.5. Look for owners to hold out for better rates in the coming week.
MR Market: Volatile Week with Rate Fluctuations
MR: Another eventful week – with losses, gains and even a hurricane! TC2 started this week with rates hovering around the 37k MT x ws200 but rates fell each day and ended the week 37k MT x ws175-180 range. However, the Americas had a bit more of an interesting and volatile week. The start of the week for TA saw TC14 deals dipping all the way down to 38k MT x ws147.5, but have since recovered and bounced back quickly as the cargos continued to pour in and the week ended with 38k MT x ws210 going on subs. Brazil movements, while quiet have seen a slight rise since the start of the week started 38k MT x ws240 while ws255 is now on subjects. Finally, we have the USG>Caribs runs. After the previous two weeks of insane highs, a quieter holiday shortened last week brought rates back to earth. The week started at around $685k, however the end of the week has proved eventful with an option now on subjects at $1.025m. Owners are yet again looking towards a brighter week next week as lists are getting shorter, rates will likely continue to rise if the cargo volume remains so hold on to the rollercoaster USG market.
Did you subscribe to our daily Newsletter?
It’s Free! Click here to Subscribe
Source: CRW
