VLCC
An active period in all sectors and classes with TD3 increasing over fifty-five percent, TD15 up almost fifty percent and TD22 pushing towards the $10 million level. An influx of inquiriesleft charterers with fewer choices and owners looking to capitalize on the smaller supply of available tonnage. In the Arabian Gulf, charterers were actively finishing up their October cargo programs, ahead of the next week’s release of November stem confirmations. While in the Atlantic a surging Suezmax sector led to an uptick in VLCC business from WAF>UKC. All these factors put the market into a frenzy and even at week’s end charterers were looking for tonnage with few choices. The sentiment could see some easing if all these ships on subjects do not get confirmed, but if they do, fewer choices will keep the pressure on in the short term.
Suezmax
A very dynamic week for the 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 end/early November programs while simultaneously attempting to steer clear of owners’ fierce resistance by week’s end. As a result, the TD20 route finished the week up at ws115 which is up a healthy 40 points on the week-to-week comparison. In the Americas, tonnage availabilities remain very thin coupled with increased demand for USG reverse lighterings and a volatile Aframax + VLCC sectors should continue to push Suezmax USG>UKCM trades above ws100 (basis 145,000mt cargo) barrier by earlier next week if tonnage fundamentals remain disjointed. The USG>EAST rates were up once again this week with Singapore discharge commanding $5.1m levels and Long East at $5.6m levels and should remain date-sensitive going into next week. BDTI- TD20 ended the week settling at ws116.14, which is up 41.59 points from this time last week.
Aframax
The USG/EC Mex/Caribs region continued their 4th quarter rate build with very strong advances in rates for all regions and voyages. Rates for USG>Trans-Atlantic voyages moved up over 70 points in less than a dozen reported fixtures, and sentiment for this trade remains strong going into next week. Short haul moves from EC Mexico to the US Gulf, a preferred voyage for owners in down markets, saw the tables turn with fewer players willing to entertain the short-run voyages while TCE returns jumped much higher for the longer haul voyages. This has caused a lack of tonnage availability for short voyages and STS lightering, and in turn rates for these runs leaped upward as well. At week’s end, EC Mex>USG looks to freight at ws225 level, well above Monday’s starting point of ws150, and STS lightering more than doubled from $45,000 per day to just under $100,000 per day for the same period. We expect this strengthening of rates to continue next week.
MR
All of the stateside rates along with TC2 started the week off at the highest levels and took a step down each day as the week progressed. TC2 started the week off around ws180 and ended the week around ws155. TC14 started around ws135 levels and ended around ws120. TC18 began the week around mid ws230 levels and finished the week off around ws230. TC21 started at just under $1.0 million but even with some reasonable activity through the week, it ended at around $750,000. Most of the routes had some decent activity throughout the week but the number of prompt ships did not help the rates. Hopefully, more cargos will come out at the beginning of next week to help stabilize the rates or send the rates in a different direction.
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Source : Capital link
