VLCC
A bit of an East/West divide has developed in the V-market over the week. A tightening tonnage list in the East, with plenty going on under the radar and several ships on subs with no details attached. Rates are still mid WS 50’s TD3C, but there is limited downside. Only 29 modern ships on the water free of cargo, which should spur any owner to head straight up to the MEG when passing Galle as opposed to ballast towards the Atlantic on spec. Albeit marginally, Baltic numbers all came in green yesterday so a possible uptick for MEG/East could be in the cards in the coming days, once the Christmas holiday has passed. Tonnage supply in the Atlantic is a tad more plentiful. However, both the Suezmax and Aframax segments is showing promise, which should rub off on their larger sisters eventually.
Suezmax
At last, some life in the Western markets, and the USG has finally got going from the doldrums where we were last week. Last done for this market now is 145 x WS 82.5 over to West Africa, and it’s slowed down somewhat as we move into early January laycans with the charterers keeping quite some mild pressure on the rates. Last done we have seen in Angola/UKCM fix at WS 90 off the 1st of January, but we are expecting the market to move up a touch given the positive sentiment amongst the Suezmax owners here in the West. There are bouts of bad weather in the North and over the Atlantic which will undoubtedly help owners to push on for more with the delays/impacts the weather will have on tonnage. Over in the MEG, the rates have firmed significantly for any MEG/West cargoes transiting the Red Sea, which is no surprise given developments there. We have seen the Basrah/UKCM market jump some 20 points over the week to 140 x WS 90 levels now for 1st decade January fixing. MEG/East remains steady in the 130 x WS 155-120 range.
Aframax
North
An active end to last week, and the start of this week has seen the natural North Sea tonnage with safe itineraries being picked off, tightening the list and pushing dates out towards end month. We have seen some weather delays, and with surrounding areas looking attractive and firming tonnage is likely to ballast out of the area, this combination will further tighten the list and put some more pressure on freight rates.
Mediterranean
A flurry of activity has firmed Mediterranean Aframax throughout this week. With the activity and lists at least off prompter dates beginning to tighten, owners look to keep the pressure on for higher numbers though that being said, next week could be quiet and this time of year always leaves room for a ship to be wrapped up at last done rates in time for Christmas. Continued consistent supply has potential for higher numbers as rates are only moving in one direction.
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Source : Fearn pulse
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