Fearnleys summarizes weekly tanker report for week 22 of 2024.
VLCC
A week of consecutive losses, as charterers played a strong game. At the time of writing, TD3 sits a fraction above WS 60 and likely owners will be resigned to the fact we may be exploring the WS 50’s soon. This is far from abnormal, as we see this cycle of high WS 50’s to low WS 70’s and back again play out every month this year. The cause of concern for owners this time is the speed of the drop, and the buildup of tonnage, both in the East and West. Chinese cargoes have utilized local tonnage, and any left-over oil was mopped up on a need-to-know basis. MEG laycans are now mid-June, usually the quieter decade, so further softening likely.
The Atlantic is firmer on other sizes, TD20 is climbing on the Suezmaxes and VLCC’s are rapidly beginning to look good value on the run. Aframaxes also firm in the USG, so likely there will be some raining on the parade of these sizes by their bigger sisters. TD15 in the mid WS 60’s and USG/Ningbo around the USD 9m level to test. More enquiries would be welcome.
Suezmax
135 x WS 120-125 for X UKC has been done a couple of times before the long weekend in the UK, but now owners are sensing a chance to push rates up in all Atlantic markets. The Mediterranean has been a stalwart in recent weeks. Aframax activity providing a strong undercurrent to anything happening on the Suezmaxes, and CPC rates are now up to 135kt x WS 120-125 for CPC/UKCM. Yesterday we’ve seen a good quantity of ships go on subjects in West Africa as we push towards the end of the second decade in June. 130 x WS 107.5 for West Africa/USAC has been paid indicating TD20 is at least WS 112.5 now with potential to firm due to a tighter list. The USG/Caribbean is firming. There are cargoes working and rates need to push up to come more in line with West Africa. We don’t have the UKC/West Mediterranean ballasters which we were seeing this time last week. Finally the MEG, there is not a huge amount of ships coming to the East as regularly anymore. Rates for MEG/East haven’t dipped under 130 x WS 110 in some time, but largely this year has traded between WS 115-125. The list is tight and there’s rumors of 135 x WS 132.5 having been done.
Aframax
NORTH SEA
This week started with a steady feel with crude stems working in the natural window out to around the 8th of June. Available tonnage looks to be repopulating but is also littered with uncertain positions, and surrounding areas are still attractive to ballast out to. Owners have options so can be more selective over which cargoes to offer to.
MEDITERRANEAN
First decade of June has remained busy in the Mediterranean/Black Sea area and kept rates well above the WS 200 levels. CPC is now covered up to mid-month dates. North Africa fixing mid to end first decade dates with vessels ballasting from surrounding areas as well, as owners look to work the elevated rates in the Mediterranean. Increased requirement has kept the market busy, but Suezmax intervention might limit any drastic movement barring any special requirements. USG is expected to jump which could pull at some tonnage.
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Source: Fearnpulse
