After having been on an upward trajectory in the week gone by, the Baltic Index shed a bit across the board, although probably more down to lack of reported deals than anything else.
VLCC
The market for Very Large Crude Carriers saw a slight decline in the Baltic Index, likely due to a lack of reported deals. However, there were some positive signs with a few Indian-bound cargoes being concluded at strong rates. A short route from the Middle East Gulf (MEG) to the West Coast of India (WC India) reportedly paid WS 100, and a West Africa to WC India cargo was concluded at the equivalent of WS 68. Despite the slight dip in the index, the rates, particularly for the MEG/East market in the mid-WS 60s, are seen as a positive sign as the industry moves from summer to autumn.
Suezmax
The Western Suezmax market remains in good condition despite a slight drop in Baltic rates. Tonnage has increased over the long weekend, but prospective demand, particularly for second-half September, is expected to be sufficient. Charterers will need to be proactive as tonnage is likely to be drawn from the same pool for routes from the CPC, US Gulf, Brazil, and Guyana. In the East, the market is more stable due to an adequate supply of vessels available for laycans before September 15th.
Aframax
North Sea
After a couple of busy weeks that saw rates rise, the North Sea Aframax market has slowed down. The loading schedule for the first half of September appears to have a light volume of cargoes. This, combined with the availability of relets and Suezmax vessels, could lead to a slowdown in activity. However, the limited availability of overall tonnage may prevent a significant drop in rates.
Mediterranean
The Mediterranean market had a busy start to the week, with rates correcting and charterers taking on tonnage at lower rates for the first part of September. The tonnage list has been cleared, but dates are moving forward. As surrounding areas remain strong, further rate corrections for local Mediterranean routes are not anticipated at this time.
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Source: Fearnleys
