Tankers: VLCC Market Fails To Post and Worthwhile Recovery
Rates remain rooted across much of the sector. In the Middle East, 280,000mt to USG via the Cape/Cape routing continues to be assessed at W15 and 270,000mt to China is still hovering around WS26. In the Atlantic, rates for 260,000mt West Africa to China held around the WS29.5 level while 270,000mt US Gulf to China improved by about $90k to $4.6m. This is likely in part due to the $20+/mt rise of bunker prices in the area.
Rates for 135,000mt Black Sea/Med rose 2.5-3 points to low WS50s, while owners in the 130,000mt Nigeria to UKContinent market were unable to stop rates sliding 2.5-3 points to WS36.5/37 level. In the Middle East market, rates slipped two points to WS20 for 140,000mt Basrah/Med.
In the 80,000mt Ceyhan/Lavera market, rates have eased to be last assessed at W61. However, a couple of fixtures overnight have been reported at WS57.5 – down 7.5 points week-on-week. In Northern Europe rates for 80,000mt cross-North Sea gained five points to just shy of WS75 and 100,000mt Baltic/UKC firmed 2.5 points WS43.5 level. Across the Atlantic owners were able to capitalise on a continued firmer market and pushed rates for 70,000mt Carib/USGulf up 10 points to WS85. A 70,000mt USG/UKC continued to seesaw around the mid WS60s.
In the Middle East Gulf/Japan trade, owners were able to maintain the firming trend of the previous week and rates gained around five to six points for 75,000mt to sit now in the low WS80s. It was a similar story in the LR1 trade with rates for 55,000mt to Japan now up in the WS80 region, representing a four-point improvement from a week ago. The MR market also maintained momentum with rates for 35,000mt AG/East Africa gaining 20 points plus to sit now in the low WS130s. Closer to home, in the 37,000mt UKContinent/USAC trade rates were steady at WS75 level, while WS85 was done in to West Africa. The backhaul trip of 38,000mt from US Gulf to UKContinent saw rates unable to gain any traction, being maintained at a paltry level of mid/high WS40s while the 38,000mt US Gulf to Brazil run eased 2.5 points to WS67.5 region. There was little encouragement for owners plying the 30,000mt cross-Mediterranean trade with the market flat at WS70 level.
Source: The Baltic Briefing