A Sluggish week on the VLCC sector as eastbound rates from the USG fell to the lowest levels in over two years, reports Weber.
VLCC
VLCC freight from USG>China (270k MT) has averaged $7.62 mil so far this year; compared to the 2023 average of $7.84 mil, the 2022 Average of $6.62 mil, and the 2021 Average of $3.51 mil. The over-supply of tonnage continues to weigh on sentiment; keeping rates flat and hovering around year-to-date lows.
SUEZMAX
Another lackluster week for the Suezmax sector in West Africa as ample tonnage avails coupled with diminishing earnings in alternative load regions assisted Charterers in testing rates down 2.5-5 points on the week-to-week comparison. The TD20 route finished the week teetering in between ws75-77.5 levels and should witness additional downward testing early next week unless excess tonnage is absorbed elsewhere.
In the Americas, Suezmax inquiry was scarce this week as rates continued their downward correction off the back of a sluggish Aframax sector and weaker sentiment spilling over throughout the Atlantic Basin. Rates for USG>UKCM slipped below the ws60 barrier down to ws57.5 levels (145k MT) while Guyana>UKCM slid down to ws70-72.5 levels (130k MT) with The USG>EAST route slipped a touch lower this week with Singapore discharge commanding $4.85m levels and $5.4m levels for Long-East respectively. BDTI – TD20 ended the week settling at 76.11 which is down (-0.83 ) from this time last week.
AFRAMAX
A rather lackluster week for the Aframax sector as last-done levels faced downward pressure for most of the week off the back of bloated tonnage fundamentals and a sagging Suezmax sector.
TD25 USG>UKCM started the week at ws125, only to retreat down 5 points to ws120 levels, while TD26 ECMEX>USG route cratered 10 points on the week-to-week comparison down to ws105 levels for the popular short haul. Both were year-to-date lows. Suezmax inquiry was also rather limited this week keeping the rival Aframax sector in check as TA rates were tested below the 145kmt x ws60 barrier (Afra equivalent 70kmt x ws119 lvls) which could push the TD25 trade below ws120 levels earlier next week.
MR
Lo and behold, another week of drops passes the market by. The CONT (37k MT) saw a tremendous dive worthy of a gold medal, with rates starting at around ws195 and splashing down to ws135. The USG (38k MT) also experienced a stumbling this week. TC14 USG>UKC (38k MT) again saw a flurry of cargoes with owners jumping on the opportunity to get anything done.
Rates started at ws160 and dipped to ws150 by the end of the week. USG>Brazil was unpopular once again with rates falling from around ws230 to ws220. Finally, we have Caribs runs, where many ships went on subs for these voyages, and rates again dropped from approximately $690k to $615k. The bottom of the barrel keeps getting farther and farther away as owners are still trying to get their ships to move and make some money, while charterers continue to enjoy the sweet embrace of a cold market.
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Source: CR Weber
