VLCC rates have softened after a recent surge, Suezmax faces mixed trends across regions, while Aframax remains stable in the North Sea but lacks momentum in the Mediterranean, reports Fearnpulse.
VLCC
After days of upward rate trajectory, the sentiment in the VLCC market took a turn for the worse yesterday. This time last week MEG/East rates were hovering around the WS 55 mark, but a tight front end position list, made shorter by bad weather and delays in the East, left charterers scramble for tonnage as the early October program finally came into play. Thereafter rates ticked steadily up for every successive fixture. However, despite reports yesterday morning of a strong WS 62 having been paid MEG/Taiwan, a sole early second decade cargo attracted a multitude of punters and the first counter at WS 57.5 were taken out without much of a fight. They say you do not panic if you are the first one out the door, and not long after a flat WS 57 was done for a shorter voyage, unimpressed by a report of a WS 65 having been done earlier for a similar voyage. And with that we’re likely “back to start”, and as in the game of Monopoly not collecting.
The last three peaks in the MEG have been at about the same level of earnings. Something to watch going forward.
Suezmax
The global Suezmax market can be divided into areas of stability, such as the Middle East Gulf and US Gulf, and areas of weakness, such as West Africa and the Black Sea.
On closer inspection, the US Gulf could have indeed added some weight this week with some cargoes tight on tonnage and light on offers, therefore the question has to be asked, are owners analyzing lists or going with the flow? USG/UKCM trades WS 65 levels for now with no real support from other segments.
TD20 has been very quiet this week and will require sustained enquiry in order not to fall beneath WS 77.5 whilst the Black Sea is an Enigma. Northbound Turkish Straits delays have increased but rates have conversely fallen down to WS 85 for TD20.
Aframax
NORTH SEA
North Sea natural window has moved into October with the first 5 days already looking relatively well covered. A combination of own program scheduling and stems being worked into Suez and VLCC has limited the availability of market cargoes. Rates continue at the similar levels that they have been for a few weeks now and with both Mediterranean and US markets subdued there isn’t any area giving support West of Suez.
MEDITERRANEAN
Ceyhan and CPC continue to push through October fixing with activity out of Sidi Kerir also, although some recent cargoes there have been scooped up by Suezmax. CPC is the only area that owners can attempt to hold with delays in the Straits working in their favor. Libya is still deficient and tonnage is there to work in the region leaving sentiment somewhat lacking in positivity and hopeful of a North Africa comeback.
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Source: Fearnpulse
