The weekly report by Fearnleys talks about the tanker market conditions.
Tankers
VLCC
A quiet Christmas break for the VLCCs as tonnage has risen for the next 30 days over the festive period. Still, early cargoes are being worked on ex MEG. The second decade barely touched, and we should see some more activity here over the next few days. Middle East troubles continue with reports of a drone that has been reported to have been fired from Iran, hitting a tanker in the Indian Ocean. Let’s hope it doesn’t escalate any further, but this market could fly at any moment with tensions still high, for the time being, we still should see a weaker market in general going forward. West volumes lagging especially from USG, but a lifeline from the smaller siblings (Suez/Afra) could help owners as there are relatively few ballasters from the East at the time of writing.
Suezmax
Geopolitical events continue to wreak havoc in the Red Sea as charterers increasingly ask for Cape of Good Hope options causing thirsty refineries in the West to quickly reorganize their import schedules. Backhaul rates are the main beneficiary of this disruption with Cape rates probably trading close to WS 85-90. In the Atlantic, there will be some positive spillover from events in the Red Sea at some stage, but with the market stuck in the twilight zone (betwixt Christmas and New Year), we will have to wait for the market to properly awaken from its holiday slumber in early January to see the full benefits.
Aframax
Last week of the year and the activity in both the North Sea and the Mediterranean has been slow after last week’s fixing frenzy that helped owners push rates higher than last-done levels on every fixture. The sentiment is positive but with charterers having fixed well ahead into next year we might see some quiet days next week. Overall, the end of the year finds owners enjoying healthy returns while the uncertainties and geopolitical risks that are growing could add more fuel to the fire.
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Source: Fearnpulse
