- VLCC Market Sees Limited Rate Movement Despite Increased Activity.
- Suezmax Rates Hold Steady Amid Skittish Sentiment in the Atlantic.
- Aframax Sector Shows Significant Rate Gains on Transatlantic Routes.
There was mixed activity across the global tanker market this week. Mixed rate movements were recorded across the different vessel types. While VLCCs slightly increase, Suezmax and Aframax markets pretty much remained steady but with some odd fluctuation. Medium Range (MR) tankers, however, seem to suffer more severe rate drops, especially in the USG, reports CR Weber.
VLCC
It was a much busier week for the VLCC market with rate movements modest. The TD3 route showed a small gain of just under three points throughout the week. The latest published level is at WS 57.3 based on 270k MT. In the USG export sector, the activity increased such that the November export program was near its end.
The USG has a total of 27 fixtures reported for November. Most will not take place, but at an average of 31.4 per month, December dates are two weeks away, so the next couple of weeks will be conducted quietly by the USG.
Suezmax
Demand in West Africa was still scarce this week with the cargo count falling to a mere few handfuls in the market as charterers quietly took close tonnage to keep last-done levels stable. TD20 route remained relatively flat around WS 100 and was slightly softer ahead of the weekend on account of higher tonnage under caustic sentiment across the Atlantic.
In the Americas, Aframax owners were firm, allowing the sector to steady and bounce back despite limited inquiries. Hence, USG to TA routes rates declined by 5 points WS 89-90, on 145k MT; Guyana to UK-Continent-Mediterranean (UKCM) routes are trading at WS 97.5 on 130k MT. USG to East destination rates improved a bit as Singapore discharges came in at $4.95 million and Long East discharges at $5.55-5.6 million. The Baltic Dirty Tanker Index (BDTI) TD20 closed the week at 98.72, a gain of 2.50 points from last week.
Aframax
The Aframax had higher activity during the past week, mainly on the Transatlantic run routes. Cargoes into Europe began the week at WS 170 but jumped to WS 182.5 (on 70k MT) by the end week, with owners looking for higher rates.
Local routes from Mexico were slow-moving, but some resistance was seen after a fixture came in at WS 167.5 (on 70k MT) toward the end week. Owners will look to keep driving rates upward going into the last quarter of the year in hopes of capturing these Q4 gains.
MR (Medium Range)
The continent market remained lacklustre, with average rates between WS 85 and WS 90 using a reference of 37k MT. In the USG, the TC14 faced significant cuts from WS 190 to down at WS 130 based on 38k MT; but owners would not accept that level and the rates stabilized at WS 135 by the end of the week.
TC18 had a difficult week where it began at WS 250 but fell to WS 185. TC21 saw sharper cuts where rates dropped to around $500k. The USG market as a whole sharply went down because the rate hike earlier was not based on solid grounds. Ballasters continued to pour in from Europe and West Africa as charterers drove rates even lower.
Earnings 2024 vs 2023
- VLCCs’ daily average earnings for 2024 stood at $36,468, which is 4% higher compared to 2023.
- Suezmaxes recorded average daily earnings of $31,047 MTD for 2024, which is a fall of 20 per cent compared to 2023.
- Aframax’s average daily earnings for 2024 (MTD) sit at $49,452, which is 8% lower than in 2023.
- Earnings for MR have been volatile as rates go up and down across routes, mainly due to external pressure from other areas.
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Source: CR Weber
