VLCC Market Update: Posidonia Festivities Cast A Shadow On Rates

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VLCC

With Posidonia in full swing, anywhere else feels like a back water. Stories coming back to London of parties and Kylie Minogue the only real highlights in an otherwise drab week for VLCC rates. A week ago, TD3C was sitting mid WS 60’s and we have seen a drop almost 10 WS points lower at the time of writing. Deals done under the radar are rarely positive and with many fixtures done over a plate of tzatziki in a sun-drenched taverna, likely more still to come off. TD3 sits WS 55 level, and USG to Ningbo around USD 8.75m at best, certainly considering the lengthening tonnage lists.

Suezmax

Has Posidonia applied a handbrake to proceedings in West? Last week, both East and West markets finished on an upward curve, but with parties in Athens in full flow, there is bound to be a degree of off market fixing. TD20 is WS 115 with no obvious downside, whilst the East market is capable of adding further gains given tightness of the list.

Aframax

North Sea

With uncertain itineraries some replacement business and busy mid-month activity, the market has firmed rapidly. Tonnage still looking to ballast TA for longer returns.

Lists should replenish, but while itineraries remain uncertain market looks to remain positive.

Mediterranean

A slower start to the week with Posidonia well underway; rates have come off in the Mediterranean with owners’ keen to fix what opportunities they have in front of them. Not much in the way of market cargoes but ships are being picked off, and with the North on the up and potential delays still apparent in Mediterranean ports, some consistent supply could eat the tonnage and help to support rates and slow further softening.

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Source: Fearnpulse

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