The VLCC market is currently facing significant challenges, with daily earnings for top-performing vessels hovering around $20,000 per day for Middle East Gulf to East round voyages, excluding any waiting time. Older vessels are struggling to even cover their operating expenses, reports Fearn Pulse.
VLCC
The Atlantic market is also showing increased activity, with demand from eastern buyers. This includes interest in North Sea crude in addition to traditional sources like the US Gulf and West Africa. While this hasn’t yet significantly boosted rates, it’s contributing to a tightening of the market. Paper trading is also on the rise.
Suezmax
The dry bulk shipping market experienced a brief period of optimism in West Africa with a flurry of charters, boosting rates. However, this surge was short-lived, with rates declining in other regions like the Mediterranean and Black Sea.
While US Gulf to Atlantic trades offer potential for UKC-ballasting Suezmaxes, the influx of Aframaxes is limiting opportunities for higher-paying voyages.
The lack of activity in East of Suez markets further dampens sentiment, leaving owners with limited options and increasing pressure on rates.
Essentially, the initial optimism in West Africa proved to be short-lived, and the overall market outlook remains challenging with limited activity and downward pressure on rates.
Aframax
Limited market activity has put pressure on rates, with the fixing window extending into the second half of the week. While the US market is showing signs of improvement, overall market sentiment remains subdued.
A combination of factors, including a lack of early-week activity and Suezmaxes absorbing Aframax cargoes, has resulted in a significant backlog of available vessels. This oversupply, coupled with “summer-like” market conditions in the middle of winter, has negatively impacted market sentiment, suggesting that a turnaround in the current situation may take some time.
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Source: Fearnley
