This week saw steady activity across the tanker markets, with VLCC rates continuing their upward trend, especially as October stems begin to play a role. Suezmax demand in West Africa grew, but rates remained stable despite increased cargo flows, helping to balance the market. Aframax activity was limited, with rates dipping below key levels as excess tonnage persisted. The MR segment saw contrasting results, with the CONT market improving while the USG market faced downward pressure on rates. Overall, while stability appears in some sectors, volatility continues to influence global shipping dynamics, reports CR Weber.
VLCC
It proved to be a steady week on the VLCC front as TD3 continued its upward
advance, the latest posting at ws54.5 (basis 270k MT). Rates remain poised to push as
October stems come into play. The Atlantic Basin saw eastbound levels push into the mid
$7.0 millions, while transatlantic levels pushed towards the $3.0 milllion level.
SUEZMAX
Suezmax demand in West Africa was stronger this week as charterers
quickly worked through their 1st decade October programs with ease, taking advantage of a bloated tonnage list to start the week. Despite the boost in cargo flow owners were unable to move rates but the additional inquiry helped absorb excess tonnage, which has improved overall market fundamentals and created some much-needed stability. The TD20 route teetered around ws77.5-80 levels for much of the week off the back of growing resistance amongst owners and steady rate trends in alternative load areas. In the Americas, demand was fairly limited, at least on the surface, with only a handful of cargoes making the rounds.
Local rates in the USG & CBS region were flat despite plenty of tonnage getting absorbed
quietly beneath the sheets. Rates for USG>TA held their ground at ws62.5 (basis 145k MT)
but are poised to push higher going into next week. The Guyana>UKCM trade also continues to hover in place holding in the ws75-77.5 range (basis 130k MT). The USG>EAST route slipped a touch lower this week with Singapore discharge commanding $4.5m levels and $5.0-5.1m levels for Long-East respectively. BDTI – TD20 ended the week settling at 78.33 which is down (-1.11) from this time last week.
AFRAMAX
There is not much to say about the Aframax market this week. Activity was
scarce with only a few lighterings in the USG and one ECMEX>USG cargo reported. Rates out of ECMEX dipped below ws100 and were projected at ws95 by the end of the week while Trans-Atlantic routes remained untested however, next done into Europe will likely go
below ws120 (both basis 70k MT). For now, the waiting game continues as ships remain
stacked up throughout the region.
MR
MRs this week were interesting for sure, but only one side of the pond stood
victorious rate wise. The CONT market saw a decent number of cargoes this week which
pulled the market up towards the ws140 levels towards Friday (basis 37k MT). The USG
market saw quite a few cargoes getting done this week too, however the rates showed a bit
of a different story. Many TC14 cargoes were fixed, starting around the ws145 levels but
cumulating down just below ws130. USG>BRAZIL runs did not see much action, but the
market kept pushing the sentiment down from ws145 all the way to ws130. Did you subscribe to our daily Newsletter?
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Source: Charles R Weber Research
