VLCC
A very sluggish start to the MEG April program has seen a tonnage buildup, with vessels sailing free of cargo in the East. Coupled with a number of relets, and the scene is set for a rate drop. At the time of writing, one Thailand bound cargo has attracted a reported 10 offers showing the lack of choice available to the build-up of tonnage. Rates will come off, but TCE’s are still very attractive and there is no shame for owners fixing on vessels date at a good level. Cargo wise, we are behind schedule and the bulk of early April will come eventually, but with each passing (quiet) day, that MEG list lengthens.
The Atlantic market was saddened at the news of a failure ex USG/Ningbo at USD 9.55m, a decent number, but the 2024 USG/Ningbo average so far stands at USD 9.2m, and if stretched too far above that, it would appear subs can become trickier.
Softer overall, but fundamentals are there to prevent the falling off a cliff… the power is in the owners’ (and Oil Co. relets) hands.
Suezmax
West Africa, busy week so far, April stems in play with questions on the Nigerian Freight Tax waver coming to an end, which helped rates push slightly higher. Tonnage is a little tighter off the beginning of the month but suspect the market to won’t change a great deal going forward.
The Mediterranean-Black Sea, once again all about the Aframax market which remained firm and helped the Suezmax market maintain last done levels from the Black Sea, with the Mediterranean seeing Suezmax vessels covering Aframax cargoes at 80k at WS 170.
US Gulf revolved around the Aframax market once again with market looking softer, understand last done was 145k at WS 82.5, whilst we saw better rate levels covered from Guyana with increased activity helped by the West Africa market, rates running in at 145k at WS 90 for UKCM by mid-week.
The Middle East Gulf, busy start to the week with plenty of action enabling the rates to climb to WS 67.5 for Basrah/UKCM via Cape, little activity East but rates should be around the WS 122.5 for Eastern destinations for modern tonnage.
Aframax
The North Sea has seen very limited activity in the first half of the week. Early tonnage availability has been reduced with vessels ballasting initially towards US, but with market softening in the US tonnage has been turning towards a firmer Mediterranean market. Rates in the region have remained steady and dates now pushing into the last 5 days of the month. Local tonnage should recycle towards the end of the month and be supplemented with tonnage arriving into the area.
Activity in the Mediterranean this week has seen owners test the limits on end month March stems whilst trying to compete with Suezmax for employment. Tighter tonnage off the front end has allowed owners to be bullish on rates, but with Suezmax there to intervene on a level footing and a projected replenishment of tonnage for April dates, ships opening in the area should help to ease the pressure on charterers and steady the market as we move forward.
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Source : Fearnpulse
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