The Baltic Exchange numbers yesterday indicated a stronger market than actual physical deals, reflecting current market sentiment. Rates for Middle East Gulf to China voyages have likely increased significantly, with some reports suggesting deals in the low WS 70s, reports Fearnleys.
VLCC
The shipping market is currently experiencing a positive period, despite some recent negative press. This positive trend is being supported by several factors, including recent government actions. However, longer waiting times for profits and lower trading volumes in February are expected to have some impact. While the market may seem quiet today, there is likely significant activity happening behind the scenes.
Suezmax
The Atlantic market is expected to experience further gains, particularly in West Africa and Europe, with the extent of these gains largely dependent on developments in the US Gulf.
In the East, recent market activity has been less than expected, with a 130KT x WS 105 fixture for a MEG/East run concluded, despite owners previously targeting WS 110 levels.
BOT/WEST voyages via Cape are anticipated to trade in the low to mid-WS 60s range, although these rates are often influenced by owner repositioning preferences.
Aframax
The North Sea market is currently characterized by a lack of significant movement. Limited activity and the presence of the oil company’s own tonnage covering the natural window have resulted in a relatively stable rate environment.
In the Mediterranean, increased activity has led to a slight tightening of the market. While rates have been slow to move initially, continued demand could exert upward pressure on rates. Despite some vessel departures from the region, the continued weakness in the North Sea market is likely to drive more ballasters towards the Mediterranean, potentially further tightening the market.
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Source: Fearnleys
