VLCC and Suezmax markets face ample tonnage and reduced rates, while Aframax remains steady with limited activity. The Mediterranean market holds around WS 135-140, awaiting potential rate support, reports fearpulse.
VLCC
Plenty of VLCC tonnage around, especially in the West, have resulted in USG/East rates reducing 2-300k in about a week’s time. Hardly any ballasters from the East though, but the list is well stacked with ships opening on UK/Continent. It shows that there are enough ships to cover the little enquiry at hand as the arb seems shut for Far Eastern voyages from the West. With just the past week seeing about 4-5 ships failing from USG/West Africa load. The MEG market struggling to find a proper bottom, with tighter list then last week. Cargoes seeing fewer offers, but still managing to cover around mid WS 40s mark. The Summer doldrums still present as owners are patiently waiting for the activity to pick up, especially from the West, to help push the market in the East on the back of a ‘tighter’ MEG list.
Suezmax
After a slow start to the week, the Atlantic has finally showed some basic signs of life with a decent volume of ships on subjects. TD20 should still have circa 8-10 cargoes for the third decade with confirmed “last-done” pricing WS 77.5 with a chance of rates nudging up a pip or two by Friday. The US Gulf is still fairly flat, but the positive news is that rates appear to be scraping the bottom at about WS 60 for a T/A run.
To a large extent, the East remains fairly opaque and what cargoes we have seen either flirted with going on VLCC’s or went VLCC. We freight MEG/East low WS 90’s with a flat trend. BOT/UKCM has suffered at the hands of VLCC’s and we’re pasting WS 50 cogh against that run today.
Aframax
North Sea market remains steady with limited activity so far this week and rates maintaining at 80 x WS 120 for X-North Sea. We are still seeing tonnage ballast out but with surrounding markets also on the softer side opportunities are limited at the moment.
Charterers in the Mediterranean have managed to utilize willing participation from vessels exiting the North Sea market as well as Suezmax interaction to hold owners around the 80 x WS 135-140 mark for X-Mediterranean. As we head towards the 3rd decade a healthy stem count could help to support owner’s incentives if the Suezmax are not there to cannibalize. For now, we expect activity to remain subdued and for rates to hold around current levels.
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Source: Fearnpulse
