VLCC
The doom and gloom of the past few weeks quickly dissipating over the last few days, as MEG rates improving by 40%, and the swinging WS 60’s potentially in view. The usual busier start to the month meant charterers fell over themselves chasing tonnage and owners were able to help each other out by leaking deals into an increasingly warming market. At the time of writing, WS 59 done short East and WS 58 to Korea. Expect a Chinese freeze on anything prior to mid-month August laycans in an effort to cool the market, and some profit taking on prompter dates very likely. But sentiment is strong right now and we count just 27 vessels free of cargo in the East at this moment in time, reports fearnpulse.
The Atlantic, the earlier vessels booked what they can, minimizing waiting and a lack of ballasters from the East means this market may continue an upward trajectory in the short term. USG to China fixed at USD 7.35m, T/A at USD 3.15m. A sense of resistance on the Suezmaxes taking hold also.
Suezmax
At the beginning of the week, the Atlantic Suezmax market looked like it was on the edge of a precipice, but owners have managed to avert all an out rate-capitulation (at least as far as the US Gulf is concerned). A key insight into owners’ resolve was a USG/TA fixture that traded marginally down on last done from WS 82.5 to WS 81.25, crucially staying above the WS 80 barrier.
In West Africa, all eyes are on ENI West Africa/UKCM 10-11th August which is likely to test TD 20 down a tad, although having been in the market for days now, natural dates might start to work past them.
Non-Indian flagged vessels have had to watch from the sidelines as circa 80 percent of Indian cargoes were awarded to Indian flagged vessels. There is a long list of FOC vessels and MEG/East rates are under downward pressure.
Aframax
A busy end-month window in the North Sea with charterers securing tonnage in the market willing to do last done rates and reset positionally within the region. The 1st decade of August is soft on paper and with a balanced position list moving forward, it is hard to envisage any big swing on rates in the short-term.
Rates have ticked along in the Mediterranean with deals being done on or off the market and rates being repeated. Owners have held their ground through a tricky period of fixing where the summer lull in activity has been all encompassing. Still fair returns for owners and activity is steady with the tonnage list remaining balanced, despite vessels being fixed for voyages that will take them outside of the area.
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Source: Fearnpulse
