VLCC rates may face a temporary dip after recent highs. Suezmax holds steady in the Atlantic, with West Africa busy. Aframax firms in the North Sea but may see rebalancing soon, reports Fearnpulse.
VLCC
Throughout the 20th century, Wednesday has been especially referred to as hump day in an effort to liven up the drudgery of the workweek, although it won’t necessarily cheer up the owning community today. The market for the big ships is not bad by any measure, but with rates having been pushed up towards the WS 60 mark for MEG/East runs in the week gone by, there’s a danger that it’s reach the top of the hump as we turn the corner towards the weekend – with a possible slide down the other side in stall. Charterers have showed resistance leaving owners wondering if “that was it” for the first decade November in the MEG. Few believe that is the case of course, but where there is doubt… one bird in the hand and so on. A few failings have stalled things a bit in the Atlantic too. However, even if rates could be in for an adjustment, seasonal demand should dictate a temporary setback.
Suezmax
The Atlantic has a steady feel with no evident downside. West Africa is busy with sustained enquiry in a narrow window, which may see rates gently nudge upwards prior to the weekend. In the Mediterranean, despite a lengthy list of TD6 candidates, there appears to be some resistance from owners to drastically softening their ideas, especially as charterers still insist on early Canakkale cancelling.
In the East, it’s been a mixed bag with last done rates rarely being repeated. BOT/UKCM (cogh) might trade down due to an abundance of FOC ships who will be looking to reposition West.
Aframax
A combination of vessels ballasting leaving a tighter list and a relatively active spot market for end/early dates has seen X-North Sea firm up 25 points since this time last week. Pushing into November stems, and with levels giving much improved returns, we may not see as much ballasting out in the short term and natural tonnage will come back into the frame which should rebalance the available tonnage.
Small correction on the benchmark of TD19 to equal Suezmax levels that have capped the Aframaxes. Tonnage list is still well populated with quite a few different owners and vessels up until the end of the month. November dates in North Africa slowly coming into play, and the 2nd decade ex CPC is also anticipated. Some relets are being utilized on own cargoes.
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Source: Fearnpulse
