VLCC Tanker Market Retreats After Recent Rebound
Charterers took a step back last week after previously frenetic activity. In the Middle East Gulf rates peaked at WS 85 for 270,000mt to China, and then softened to low WS 80s, as owners await the November Saudi program. Going west, 280,000mt to the US Gulf was assessed at around WS 32.5 Cape/Cape. West Africa to China eased modestly to WS 79, basis 260,000mt. IOC covered East Coast Mexico to Paradip at $6.4 million. Vitol fixed Hound Point to South Korea at $6.85 million.
West Africa gained 15 points to WS 107.5 for 130,00mt to UK/Cont. The Black Sea held at WS 105 for 135,000mt to Mediterranean with South Korea covered at $3.6 million. Libya to Ningbo went at $3.475 million.
Rates in the Mediterranean came under pressure with Ceyhan fixed at WS 105 and the Black Sea paying WS 110/112.5 basis 80,000mt. Baltic rates for 100,000mt gained 10 points to WS 100. The 80,000mt cross North Sea firmed in line with the Baltic at WS 115. The Caribbean Aframax market gained 25 points to low WS 160s for 70,000mt from Venezuela to the US Gulf.
Limited tonnage availability saw the market for 55,000mt from ARA to the US Gulf remains around WS 115.
In the 75,000mt Middle East Gulf/Japan trade, rates eased 2.5 points to WS 100 with rates for 55,000mt back to WS 120 after peaking at WS 125. A slow start saw rates for 37,000mt Cont/USAC ease 15 points to WS 130 level. The 38,000mt backhaul climbed 25 points to WS 100.
Source: The Baltic Briefing