VLCC Market Continues To Drift Amid Low Enquiry Levels

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VLCC

More of the same on VLCC’s this week as subdued enquiry and the smoke and mirrors tactics continue. In addition, we near the twilight zone as the end July MEG cargoes are fixed and we wait for the early August stems (dates released early next week). Claims from China of multiple modern owners willing WS 46 may need to be taken with a pinch of salt, but little argument the market is soft and their remains a lack short term cheer. Outliers are there to be found on prompter cargoes with a replacement rptd at WS 49. TD3C likely sits around the WS 47 level, but a test required.

The Atlantic is usually the knight in shining armor for the VL market but flattering to deceive at present. Recent deals done transatlantic at USD 3m, and USD 7.4m to USG/Far East. Given the state of the current MEG, more modern vessels opening in the East will point towards the Cape. Still, summertime! Although a glance out of a London window and you wouldn’t think so.

Suezmax

Summer rates (the troughs, not the peaks) haven’t been wildly different from some of the winter/spring rates that we saw earlier in the year, although of course the market has been less volatile. TD 20 is holding steady at WS 97.5 for a straight run with the fixing window now chasing down the balance of the end month cargoes.

The East market is becoming more opaque by the week which has bizarrely played into owner hands with rates probably a touch above where should be had charterers been bothered to quote a cargo and go wide.

Aframax

Market remains steady with a few quiet fixtures taking tonnage, but general market activity remains limited. Tonnage availability remains healthy with forward dates being replenished. Natural window heading towards 3rd decade dates. US markets still attractive to ballast from North Sea.

Mediterranean market has ticked along in a steady fashion with some business being done, but rates holding fast in the region for now. Tonnage outlook is plentiful at the moment and with ships engaging from the North down it will take some increase in volume to see significant pressure mount on rates.

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Source: Fearnpulse