A recent news article published in the Gibson Brokers talks about Weekly Tanker Market Report.
Crude Oil
Middle East
VLCC rates seem to have steadied after a relatively active week as Charterers completed their July liftings and freight levels which had dipped a little in mid-week, recovered after Owners showed resistance. Owners are cautiously optimistic about what August stems will bring which should be known early next week. Today we would expect 270,000mt AG/China to fetch in the region of ws 51 and 280,000mt AG/USG to go for at least ws 33.
Rates for a standard TD23 run are steadily ticking up towards 140,000mt x ws 57.5 however this week has shown limited full- size Suezmax enquiry in the region. Select Owners continue to look East and as such their sentiment is steady a typical run will pay around 130,000mt x ws 110 today.
Aframaxes started the week smelling of soft notes. A lengthy tonnage list, limited levels of enquiry paired with a weak Med left little positivity hanging in the air. Rates have slipped a little from the start of the week, however, the air smells a little cleaner heading into the weekend following a decent clear out, leaving the list slimmer on quality units up to end month. TD8 sits at 80,000mt x ws 164, but in truth rates are in the ws 150s for AG /East now especially on older/handicapped units. That said, Owners should be looking to graft a little harder on the next batch of cargoes, or at least stem the bleed on rates further.
West Africa
The WAF VLCC market remains subdued as August liftings have been minimal on both East and UKC voyages and with an expanding position list combined with a weak USG sector, it’s hard to look at positives. One could say that Owners have done well to keep levels as they are, and we saw signs of small uptick in rates towards the end of the week. Today we are expecting a 260,000mt WAF/China to go for ws 51 with a 2/3 points premium for loading Nigeria.
West Africa has been active this week, the list has thinned significantly for late July dates as well as early August and Owners are buoyed by strong returns in the US Gulf. Rates are around 130,000mt x ws 100 for TD20. The usual premium to head East stands in the region of 10 points.
Mediterranean
Suezmax markets in the Med have softened over the course of the week amid pressure from surrounding sizes and a healthy tonnage list on Monday. Owners will hope for more full-size enquiry next week. For TD6, Charterers will be looking to push towards 130,000mt x ws 97.5. Rates to head East will have Charterers looking to push towards $4.2M for Libya/Ningbo.
Aframaxes began the week in earnest with some recording as many as 20 ships fixing or moving out of the Med trading zone. In theory this would have allowed for a firming in sentiment and consequently a reaction in rates. Perversely rates actually saw a drop as Owners who had been holding their breath from last week finally exhaled and took what was on offer after a drought.
Ceyhan runs dropped to ws 125 and then to a low of ws 120 before recovering by a couple of points. CPC remained quiet, with ws 160 being the market +/- a few points depending on the finer details. Libya voyages also were concluded in the ws 120s depending on the flat rate on offer and as we approach the weekend, the list is much more positive for Owners. Also, with the States market seeming appealing, some ships will ballast, and the warm Suez sector offers a reason to be hopeful for those with ships still in play.
US Gulf/Latin America
It has been a challenging week for Owners in the USG as there has been a dip in the amount of long eastbound cargoes and rates have continued to soften as ships which had been on subs re-enter the market after been failed. Brazil exports proved to be the busier part of this sector, but an oversupply of tonnage is keeping the lid on rates and today a USG / China run will fix in the region of $7.3m while a Brazil/China pay ws 51.
The Aframax market is showing signs of recovery as activity levels picked up during the week on both upcoast and T/A runs and Owners’ sentiment is starting to pick up with expectations of a busier week ahead of us.
North Sea
After a slow start, the market chugged into action giving a feeling of movement which we haven’t seen for a while. Although rates haven’t got carried away, Owners will be left with a sense of positivity after multiple ships have been snapped from the list and the market is feeling generally busier. Levels are now trading in the mid ws 130s which is not something to shout too loudly about, but a nod towards activity at the least.
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Source: Gibsons
