VLCC rates surged in the AG and Atlantic, Suezmax and Aframax markets firmed up, and the MR market saw mixed performance with a potential comeback on the horizon, reports crweber.
VLCC
An active week on the VLCC front saw TD3 AG>China increase over 30% this week, with Friday’s posting of ws60.65 (basis 270k MT), the highest level in over two months.
An influx of end August inquiry, coupled with the entry of September stems put upward pressure on sentiment. As the AG saw rates rise, levels in the Atlantic also increased with eastern levels from Brazil pushing above ws60 and USG rates moving above $7.0 mil for long East.
Suezmax
Suezmax demand was stronger this week, enabling owners to fortify fixing levels in the mid ws70’s while also shifting market sentiment in a more positive light. The much-needed boost in cargo demand has helped improve overall tonnage fundamentals and created additional stability from the past two weeks’ downward spiral. The TD20 route held its ground and closed out the week at ws75 and has a firmer undertone going into the weekend. In the Americas, increased demand coupled with a rebounding Aframax sector helped boost USG>UKCM rates slightly up to ws62.5 (basis 145k MT) and is slightly trailing current Aframax USG>TA prorated equivalents. The Guyana>UKCM route also witnessed a decent injection in cargo activity which helped absorbed excess tonnage within the Atlantic Basin as rates pushed up 2.5 pts on the week to ws77.5 (basis 130k MT). The USG>SPORE route remains pegged at around $4.8m levels and Long East at $5.35m but both remain untested. BDTI – TD20 ended the week settling at 75.69, which is down (-0.42) from this time last week.
Aframax
The Aframax market kicked off with a softer sentiment this week as charterers continued to push rates down with each fixture. However, towards the middle of the week, an increase in activity had owners pushing for more as the tonnage list began to thin out which left the market firmer by COB Friday. Local routes jumped up from ws95 to ws125(basis 70k MT) by the end of the week while Transatlantic routes were projected around ws132.5 levels (basis 70k MT). That being said, expect owners to maintain some resistance across all sectors as they look to bring rates back to more manageable levels next week.
MR
The MR market had another interesting week on both sides of the pond. The CONT saw a steady increase in rates throughout the week, starting at ws125 and peaking at ws130 (basis 37k MT) by Friday. The USG saw their rates stumble towards the middle of the week but seemed to recover on Friday. TC14 started the week at ws150 and dove down to ws130 before finally settling at ws142.5. USG>Brazil saw a steady falter during the week dropping from ws220 to ws200, still not many cargoes heading down that direction though. Caribs runs saw a pretty deep dive into uncharted territories, heading from $600k down to around $500k levels before rallying back up to $550k levels (All basis 38k MT). Is this the start of a comeback in the market? Owners and Charterers alike are on the edge of their seats in anticipation of what is to come.
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Source: Crweber
