VLCC
News filtering across from other desks of a firmer Aframax market & Suezmaxes climbing upwards… But here on the VLCC’s the downward pressure continues to build. Limited cargoes on the open market. Presently, a Vietnamese cargo working and able to cater for a wider range of tonnage on a voyage that calculates better than most, so lower numbers remain imminent. Charterers also reaching out already into July dates is not a good sign, but likely some infilling of end June to come. MEG/East very low WS 50’s.
As for the Atlantic, the oversupply of tonnage will likely continue the softer run ahead. Given the opposite direction of the Suezmaxes, there will be some toe stepping on the smaller vessels as TD20 moves towards the WS 120 level, and it is likely some VL’s have already muscled in on the West Africa/UKC run. Little cheer for owners at present.
Suezmax
Ground hog day again in the US Gulf, with rates firming and last printing 145KT x WS 107.5 with no evident downside against the backdrop of a very tight list. The wider Atlantic, and in particular TD20, should benefit from this upswing and uptick in tandem with the States.
In the East, it’s been relatively quiet with rates for a MEG/East run likely to trade down to WS 120’s whilst BOT/UKCM will trade in and around last done; WS 70.
Aframax
NORTH SEA
A steady start to the week both in terms of activity and rates. The available tonnage list remains relatively tight with some uncertain itineraries; some cargoes being sold off deferred dates and with the US market continuing to firm, tonnage will look to leave the area in search of greater returns. Natural North Sea owners can be selective on which cargoes they want to offer, but so far for the right type of voyage rates have remained fairly stable. Natural working window pushing into last decade June.
MEDITERRANEAN
An active market in the Mediterranean this week but rates have continued to soften albeit gradually. The USG market is strong and helps to add some robustness to owner’s ideas, but with a lot of the plentiful tonnage in the region open.
Mediterranean/E.Mediterranean, very few ballasters have head in the direction of USG, leaving plenty of options for charterers to work through and some competitiveness in the market. Expect rates to continue in a softer trend until we can find a bottom to this cycle.
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Source: Fearnpulse
