VLCC
Quite a week, with rates swinging further into owners’ favour. A tight position list globally, leaving charterers with fewer options. In the MEG, those with remaining February cargoes are paying up on last done, with MEG/East up at WS 75 at the time of writing, and prompter West Coast Indian cargoes fixing in the WS 100’s. As we creep towards the March cargo release dates (Indian charterers already quoting Basrah stems), there will be little hangover of tonnage and further rate increases very likely. We are not quite at ‘pick a number’, but any mini rush on the March stems and owners will be eyeing up towards the WS 80’s for TD3C within the next few days. As for the Atlantic, WS 75 paid a few times West Africa/East with mid-March laycans. USG/East up to USD 9.4m, but again, higher numbers likely.
With rates as they are, we are seeing more TC enquiry as charterers try to grow their fleets for the coming year or so. Latest deal on subs for 6-9 months at USD 51.5k for the first 6 and USD 1000 extra for the balance.
Suezmax
Markets have a history of eventually adjusting to geopolitical events, and recent Red Sea attacks have proved no different. Last Done BOT/USG traded at WS 65 (Cape) which will lend some downward pressure to BOT/UKCM which should price WS 70’s (to test). A regular TD23 run will price circa WS 110-112.5, but subject to volatility due to limited pool of owners willing to transit this region.
In the Atlantic basin, West Africa has proven to be a hotbed of hearsay, with WS 110+ being reporting on subs for TD20 with no facts to back this up. With VLCC rates pointing upwards there is an argument that these mythical TD20 rates might just become tangible. Steady enquiry from the Americas further underpins these rates.
Aframax
Natural fixing dates for Aframax trading in the North Sea are pushing out to the 21-24 February window. The early part of the week has seen some prompt replacement fixing with rates moving sideways. Vessels looking towards the Mediterranean and US markets that remain attractive to tonnage leaving the North Sea.
Fixing window in the Mediterranean has pushed out to end month dates this week as cargo consistency has kept its momentum, leaving a tighter front end to tonnage lists and rising pressure on rates. Shaky itineraries warranting potential replacements and ballasting incentives TA could help to intensify the market. Rates ex CPC have bounced back despite delays in the Turkish Strait decreasing.
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Source : Fearnleys
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