VLCC
A week of contrasts…. We sit today exactly where we were at this time last week (in last done terms), however, with a clear and striking contrast in sentiment. Last Wednesday, the market sat at WS 75 MEG/China and WS 75 West Africa/China. We then shot up to the dizzy WS 90’s, only to come crashing down within a few deals earlier this week. ‘Next done’ however, will be on the lower side and by quite how much, depends on owners’ backbone. An MEG/China quoted cargo got 10+ offers this morning and charterers will take their time, while everyone waits and watches.
Given the current tightish position list (almost everyone available has offered on the MEG/China stem), the owning community may have missed an opportunity to push things a little more. But, in fairness, lack of activity, coupled with the fact that the returns on the bottom line of an owner’s Calc still look pretty damn good, a turn was always possible, and we often see a quick rise followed by a quick fall. Charterers will be targeting in the WS 60’s MEG/China, but, the list is still tight, so any sudden influx and we can regain some ground.
Suezmax
At the end of last week, East and West markets were exhibiting a little promise but they have now run out of steam with a toppy feel in both hemispheres. Throw into the mix a VLCC market that has fallen off a cliff and there doesn’t appear to be any obvious support. MEG/East prices maximum WS 120 whilst a BOT/UKCM will threaten the WS 70 mark (cogh) but we need to see an increase of enquiry to support these levels.
TD20 will trade max’ WS 115 with possible downside unless we further enquiry whilst TD6 is max WS 127.5 and steady.
Aframax
NORTH SEA
A slow start to the week came alive yesterday with a mixture of prompt and clearing end month stems. Market has remained steady, but sentiment slightly firmer for good itinerary vessels for anything end/early month. Tonnage list should start to open up going into early March. The US market is softer but still attractive currently for vessels to ballast away.
MEDITERRANEAN
The bullish sentiment of last week seems to have dropped off somewhat as we hit the mid-way point and activity has slowed for both the Mediterranean and CPC runs. On the front end of the tonnage list there are a few prompt vessels looking for cargoes but overall, looking forward it looks to be a pretty balanced list. Rates are moving sideways for the time being and demand is lining up to be the driver for the next fixing window.
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Source : Fearn pulse
