VLCC rates hold firm with upward pressure in both the MEG/Far East and Atlantic markets. Suezmax rebounds after a brief drop, driven by West African cargoes. Aframax rates remain steady but could tighten in the Mediterranean, reports Fearnpulse.
VLCC
VLCC owners have done well to hold their ground in spite of charterers trying to work under the radar. Even when proceedings were a bit slow while waiting for November dates, rates did not slip too much, and the owning community continued to resist. At the time of writing rates are holding firm around WS 55 for MEG/Far East with upward pressure evident and a number of cargoes in play. Activity in the Atlantic has also picked up today including a Petrobras export quote and also with oil prices falling USG bbls are starting to come to the forefront now, so the stage could be set for rates to firm further.
Suezmax
Last week saw TD20 inexplicably drop (like a stone) from about WS 100 down to WS 82.5 before immediately rebounding. There’s been very little pause for breath this week with the Atlantic positively poised due to a number of West Africa cargoes, that had hitherto been trying to work quietly, being smoked into the open market.
The East Suezmax market remains positive with no evident downside with MEG/East likely to trade WS 115-120.
Aframax
Prompt available positions are still being depleted with vessels ballasting mainly to the Mediterranean, but there is currently still sufficient tonnage to keep the rate levels steady. Relets and own program cargoes are still limiting the market activity which looks to continue in at least the short term.
Activity in the Mediterranean has been reflective of a tentative feel to the market of late, but owners’ sentiment looks to remain positive with lower numbers ex North Africa being trumped as Ceyhan dates move into early November loads. With North ships maybe preferring a USG ballast there is scope for lists in the Mediterranean to shorten if activity continues to tie up tonnage. Delays in the straits should help Black Sea fixing and Suezmax look to be moving out of the way.
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Source: Fearnpulse
