West Africa drives slight rate recovery; TD6 and Eastern markets steady around WS 90. Improved sentiment fuels cautious optimism, reports Fearnpulse.
VLCC
The VLCC market has gone from the doghouse to the outhouse with rates plummeting across the board in all areas in the week gone by. TD3C (MEG/China) came in at WS 48.7 yesterday, but there’s been deals concluded at considerably less, albeit spearheaded by older tonnage some of which hampered by being ex dry-dock etc. The rot has spilled over into the Atlantic market too, but thus far eastbound rates have clung on just north of WS 50 from both West Africa and Brazil. Although there are few signs of a turnaround this side of the weekend resistance is becoming more evident the further down the scale we’ve come so the likelihood of a much further decline is limited.
Suezmax
The Atlantic market normally relies heavily on the US Gulf for any green shoots, but on this occasion, West Africa has managed to step up, albeit, moderately. TD20 bottomed out at WS 75 with owners now holding for WS 80 plus. With a flurry of cargoes entering the market today, there’s a reasonable case to be made for this region adding a few more points (prior to the weekend). Meanwhile, TD6 looks likely to trade variations of WS 90’s as owners look to leverage on improved sentiment.
In the East, it’s been very quiet, at least on the surface. The good news is that the list of FOC available ships has fallen with rates likely to trade WS 90’s for an East run.
Aframax
Bad weather caused some issues at the beginning of the week but seems to have settled a bit more now. Activity in the first half of the week has been limited with some fixing/failing. Dates covering into the first 5 days and rates look like they will remain steady and in certain date ranges could come under some downward pressure. US Market not enticing much in the way of ballasting just yet.
An interesting Mediterranean/Black Sea market where the intervention of bigger ships is not extensive, but attractive returns have put them in the mix occasionally. Fixing window is pushing well forward with finding safe itineraries now at the forefront of charterers minds. The North Sea remains weak and the USG not giving much support; owners will look to keep one foot in the Mediterranean and with some requirement will likely push for higher than last done, but with Suezmax watching closely.
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Source: Fearnpulse
