This week, the Aframax market was the main driver of the US Gulf export sector, with freight rates for transatlantic voyages nearing $3 million. This positive sentiment extended to VLCCs, with rates pushing above $3 million. However, towards the end of the week, the Aframax market stabilized, raising questions about its sustained strength. The abundance of VLCC tonnage in the market also adds uncertainty to the outlook for larger vessels, reports CR Weber.
Suezmax
A dynamic week for the Suezmax sector in the West with significant rate improvements driven by constringent tonnage fundamentals and stronger TCE returns surfacing in alternative tonnage sectors. Suezmax demand remains active, as charterers continue to seek coverage for their remaining 3RD decade December programs while simultaneously attempting to steer clear of owners’ resistance.
As a result, the TD20 route finished the week up at ws92.5 which is up 7.5 points on the week-to-week comparison. In the Americas, cargo inquiry remains steady and fundamentals in the region remain “patchy” at best leaving rates in a promising position as we head into next week. Rates for USG>TA ended the week up 20 points to ws85 levels (basis 145k MT) while Guyana>UKCM is currently trading close to parity to TD20 at ws90 (basis 130k MT). The USG>EAST rates also continue to hover at $4.95m levels for Singapore and Long East at $5.5m levels and remain date-sensitive going into next week. BDTI – TD20 ended the week settling at 91.78, which is down (+5.84) from this time last week
Aframax
The Aframax market saw a significant surge in activity leading up to Houston Party Week, as a wave of transatlantic cargoes reignited what had been a sluggish market. Rates into Europe surged by 60 points since Monday, closing near ws200 by the end of the week. Similarly, routes out of ECMEX saw a remarkable uptick, with rates nearing ws160 (both basis 70k MT). As we approach year-end, owners will likely continue to capitalize on the strong demand for US crude in Europe.
MR
Another exciting week in the world of MRs! TC2 had an interesting week starting off at ws120 and bumping up to around ws130 before coming back down and settling at ws125 (basis 37k MT). Weeks end for the CONT seems to have much better outlook than it has had in months prior. The Americas, however, had a very interesting week with not much confidence coming into the week until many ships were swept up on Monday and Tuesday leading to some BIG gains in the market. TC14 had a normal start at ws135 and then rocketed up to ws167.5 by the end of the week (basis 38k MT). TC18 had seen similar growth starting off at ws200 and finishing at ws230(38k MT). Finally we have TC21, after many ships were picked up for Caribs and ECMEX runs, not many were left causing this route to spike. Starting off the week at around $485k we saw an amazing climb up to $850k for this route.
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Source: C.R Weber Research
