Tanker Market: Smaller Classes Under Pressure
Reduced enquiry in the Middle East Gulf saw rates for 270,000mt to China ease 2.5 points to WS 39, before a modest recovery to around WS 40. Korea discharge was hovering around WS 36/37 region. US Gulf discharge was fixed by Valero at WS 18 Cape to Cape for 280,000mt. Day Harvest covered 260,000mt from West Africa to China three points lower at WS 40.5. US Gulf to China rates are hovering just above $5.0 million. Unipec fixed Seeb from Skaw to China at $4.0 million.
West Africa tonnage came under renewed downward pressure, with the market losing 7.5 points to now sit at WS 52.5 for 130,000mt to Europe. Black Sea to Mediterranean rates remained flat at WS 75/77.5 level for 135,000mt, although WS 80 was paid for an early replacement.
Excess tonnage availability saw rates for 80,000mt, Ceyhan to Mediterranean, drop WS 10 points, with BP fixing at WS 105. The market remains under significant pressure, with ENI fixing Sidi Kerir to Italy on Kronviken at WS 85. In the 80,000mt cross North Sea trade, rates were maintained at around WS 100. Similar sentiment was seen in the Baltic, with the market for 100,000mt hovering between WS72.5 and WS 75 for UKContinent discharge.
Rates for 75,000mt Middle East Gulf to Japan held at W107.5. A similar scenario was seen for 55,000mt, which was steady at WS 117.5 level. Healthy enquiry and a firm sentiment saw the market for 37,000mt Continent to the US Atlantic Coast gain 25 points to WS 135, before easing to low WS 130s. The 38,000mt backhaul run from the US Gulf held in the mid WS 80s.
Source: The Baltic Briefing