VLCC Market Dynamics
After a recent upswing, the VLCC market has returned to the Worldscale (WS) 40s for routes from the Middle East Gulf (MEG) to East Asia, highlighting the volatile nature of the market. Despite this downturn, time charter equivalents (TCEs) are still better than in previous summers. The Atlantic market remains subdued, with built-up tonnage discouraging ballasters. Rates for West Africa to East Asia are in the low WS 50s, and US Gulf to Ningbo routes are seeing lower freight costs.
Suezmax Market Outlook
The Suezmax market, particularly in the Atlantic, remains resilient despite some corrections. Rates such as WS 82.5 for Ghana to UK Continent routes indicate a healthy August fixing window, which is expected to support owners in the coming months. In the East, the market remains opaque, inadvertently maintaining elevated rates as charterers prefer off-market deals.
Aframax Market Trends
The Aframax market in the North remains quiet, with demand weak due to typical summer conditions. However, the Mediterranean has seen increased activity, with owners securing previously established rates. As tonnage is worked through, there may be opportunities for higher rates if demand continues. The Suezmax market softness in West Africa and the US Gulf presents potential opportunities for Aframax vessels in these regions.
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Source: FEARNLEYS
