Tankers: VLCCs React to New Higher 2020 Worldscale Flat Rates
The introduction of the new higher 2020 Worldscale (WS) flat rates saw rates adjust downwards, accordingly with the market. 270,000mt Middle East Gulf to China is now hovering in the low to mid WS120s, with the market for 280,000mt Middle East Gulf to US Gulf, via Cape/Cape, now assessed in the very low WS60s. In the Atlantic a similar scenario was seen, with rates for 260,000mt West Africa to China being evaluated in the WS105/107.5 region. With higher bunker costs in US Gulf rates for 270,000mt US Gulf to China is now assessed firmer at between $12.75/13 million.
The 130,000mt West Africa to UK Continent market has been steady, with the market sitting at WS142.5 region. For 135,000mt Black Sea to the Mediterranean rates are assessed at around WS157.5 level. 140,000mt Basrah to the Mediterranean saw healthy enquiry, with rates hovering in the low WS60s.
The 80,000mt cross North Sea market is in the low WS160s and remains under downward pressure. The mild winter so far means there is presently no significant ice in the Baltic and rates eased accordingly, with WS145 agreed. In the 80,000mt Ceyhan to Lavera trade rates are in the low WS200s, but brokers feel with the build-up of tonnage that the market will come under downward pressure. On the other side of the Atlantic, rates for 70,000mt Caribbean to the US Gulf have continued to firm, with the market in the low WS320s and short East Coast Mexico to US Gulf runs have now been covered in low WS350s. The 70,000mt US Gulf to Trieste run remains strong, with rates nudging close to WS300.
The market for both 75,000mt and 55,000mt from the Middle East Gulf to Japan is still in the mid to high WS150s. Rates for 37,000mt to the US Atlantic Coast remain in the high WS180s, gaining a further 10 points to WS185 level, with 38,000mt US Gulf to UK Continent in the low WS120s.
Source: The Baltic Briefing