- The tanker market has experienced fluctuations across different vessel categories in the past week.
- VLCC rates have seen a temporary rebound but end the week lower, Suezmax rates face pressure in both West Africa and the Americas, while Aframax rates remain subdued amidst high tonnage availability.
- MR and Panamax markets have shown varied performance with significant shifts in rates and earnings.
The tanker market saw diverse movements in rates and earnings over the past week. While VLCC rates initially rebounded, they fell by week’s end. Suezmax and Aframax sectors faced challenges due to market conditions and high vessel availability. MR and Panamax markets experienced notable fluctuations, reflecting broader trends in tanker shipping.
VLCC Market Trends
The VLCC sector saw a brief uptick in rates, with TD3 levels climbing to ws59 mid-week before retreating to ws55.2. Despite tighter tonnage availability, rates dropped due to an oversupply in the Atlantic Basin, pushing TD22 down to $7.3 million. However, a surge in August inquiries has reinstated upward momentum in the Atlantic market.
Suezmax Sector Update
In West Africa, the Suezmax market was relatively quiet as charterers worked through their August programs. TD20 rates slipped to ws87.5, reflecting a soft market sentiment. In the Americas, local rates were softer initially but showed some recovery towards the week’s end. The USG>TA route ended at ws80, while Guyana>TA remained stable at ws90. The USG>EAST route also saw a dip, with rates for Singapore discharge at $5.0 million.
Aframax Performance
The Aframax sector experienced a slow week with ample tonnage available. Rates for USG>UKC routes were projected around ws150. Locally, the market remained quiet, and rates are expected to stay near year-to-date lows due to low inquiry levels.
MR Market Dynamics
The MR sector saw varied performance with notable fluctuations. In the CONT region, rates were stable at ws200. Conversely, the USG market experienced ups and downs, with TC14 rates peaking at ws180 before falling to ws155. Brazil routes saw rates drop from ws250 to ws235. The TC21 USG>CBS route showed some recovery, ending the week at $675k after starting at $815k.
Panamax and LR Markets
The Panamax sector witnessed an increase in rates for CBS>USAC routes, which climbed to $293k. Conversely, the LR2 market saw a decline with AG>JPN rates falling to $150.30, while LR1 rates for AG>UKC dropped to $162.00. The Panamax market shows strong performance, whereas the LR market faces downward pressure.
The tanker market continues to exhibit a mixed performance across different vessel categories. While VLCC rates have shown brief improvements, other sectors like Suezmax and Aframax face challenges due to market dynamics and high tonnage availability. MR and Panamax markets present varied trends, reflecting the broader volatility in the tanker shipping industry.
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Source: CRW
