The VLCC market has experienced a significant decline in recent weeks, with freight rates approaching operational costs. This downturn is primarily driven by weak demand and an oversupply of vessels. While some owners are holding out for better rates, the overall market sentiment remains bearish, reports Fearnpulse.
Suezmax
Whilst it could be argued that healthy tonnage lists in the Atlantic have conspired to allow charterers a smoother path to competitive rates, an even more compelling argument to support this general lethargy, is the distinct lack of positive sentiment on the owning side. There are exceptions to this of course but unless there is a mad pre-Christmas rush, we envisage rates gently softening.
The East market has been peppered with dribs and drabs of enquiry from the Gulf, but nothing that would signal a reversal in fortunes for now. Steady/soft.
Aframax
After the inclement weather last weekend, the early part of the week saw a fair amount of replacement activity. The prompt part of the list has been heavily depleted with tonnage ballasting to US markets. Even with the activity and depleted tonnage rates have remained relatively stable although good itinerary vessels are trying to push rate levels with WS 135 done as a replacement off prompt dates. Natural dates now pushing out to end 2nd/early 3rd decade.
An anticipated correction with rates for local Mediterranean runs breaking the floor of WS 140, as owners were on the lookout for opportunities after a couple of prompt vessels opened earlier in the week. Tonnage is looking more balanced now compared to the start of the week but still a healthy amount to choose from. Ballasters over to the States are limited and that seems to be adding a bit to the downward pressure.
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Source: Fearnpulse
