The development of offshore export terminals in the US, designed to fully load VLCCs and enhance crude oil exports to Asia, has experienced a rollercoaster of interest and obstacles, reports Gibsons.
Crude Oil
East:
- VLCC:
- A positive week for owners, with increased inquiries and tightening tonnage availability, especially for early April.
- Rates softened towards the weekend as charterers considered older vessels.
- Current rates: AG/China WS65, AG/USG WS34.
- Suezmax:
- Short-haul inquiries increased, tightening the list.
- West run rates remained stable around 140 x WS57.5.
- AG/East rates firmed, estimated at 130 x WS115.
- Aframax:
- The bullish run appears to have ended, with an Australian voyage reaching WS140.
- Limited early April stems, charterers working privately.
- Tonnage is tight, but narrowing the spread between TD8 and TD14 could attract Western players.
- The market is steady.
West Africa:
- VLCC:
- Quiet on the surface, but owners bullish due to eastern improvements and USG export resurgence.
- Owners keeping vessels in the East due to tariff uncertainties and potential Saudi export increases.
- WAF/East rates around WS66.
- Suezmax:
- Volatile week, tight early positions.
- Owners aiming for rates above WS100 next week.
- Market remains steady.
Mediterranean:
- Suezmax:
- Rates remained firm, lack of firm East Med itineraries.
- Owners bullish, potential for WS130 for TD6.
- Libya cargoes to the East quiet, rates around $5.7M.
- Aframax:
- Steady cargo flow led to gradual market changes.
- Tightening list due to Libya program and port delays.
- Ceyhan rates around WS110, Libya rates reached WS137.5, and CPC rates towards WS140.
- Owners are optimistic.
US Gulf/Latin America:
- VLCC:
- Increased cargo flow led to rate recovery, though slower than expected.
- Shrinking tonnage list, the potential for further improvement next week.
- Brazil’s exports quiet, but rates improved.
- Current rates: USG/China $8.2M, Brazil/China WS63.5.
North Sea:
- Aframax:
- Active market, but rates remained tepid at WS107.5.
- No significant rate changes are expected.
- Optimism from the US market, but not enough to affect European rates.
Clean Products
East:
- LRs (Long Range):
- The market has slowed down slightly, but rates remain stable.
- Tonnage availability is tight, especially for early April.
- Charterers are looking further ahead for available vessels.
- Current rates: TC1 (75 x WS160-165), UKC ($4.1m), TC5 (55 x WS175), UKC ($3.25m).
- Owners remain confident, charterers relieved by the calmer end to the week.
- MRs (Medium Range):
- Strong sentiment continues, with rates rising in the Red Sea and AG markets.
- Steady cargo flow and tight tonnage list are driving rates.
- Rates increased by 5-10 points on TC17 runs, with short-haul and East runs also performing well.
- Current rates: WS170 TC12, WS270 TC17.
UK Continent:
- MRs:
- Active week, with owners pushing rates higher.
- Tonnage list remains tight, and owners are bullish.
- Rates: 37 x WS180 paid for UKC/TA.
- Owners are leveraging long-haul inquiries and short-haul cargoes to maximize returns.
- USTR Clauses are still causing uncertainty.
- Handys:
- Consistent flow of short-haul cargoes.
- MR rate of 37 x WS190 paid for XUKC, equivelent to 30 x WS234 may affect handy rates.
- XUKC closes at 30 x WS210-215.
Mediterranean:
- MRs:
- The North market is now driving Med MR rates, along with a strong Handy market.
- Rates are rising, though slightly lagging behind the North.
- Rates: 37 x WS185 paid for WAF, approximately WS170 for TA.
- Tonnage depth and incoming laden vessels are key factors.
- Handys:
- A combination of ship delays, flag waiver restrictions, and bad weather has caused a rate surge.
- Rates: 30 x WS280 levels achieved.
- Cargoes are expected to slow down, and tonnage lists will replenish, but the market remains tight and bullish.
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Source: Gibsons
