June 10, 2016
The following is an overview of tanker spot market activity for the week ending June 10, 2016.
Activity remained steady week-on-week in the Arabian Gulf. AG/East rates rose back into the high WS 60s, with some spikes into the low WS 70s. Rates to the West traded steady at an average of WS 35. In the Atlantic Basin, WAFR/China rates remained steady in the mid-WS 60s.
Volume fell again in West Africa and rates initially held last week’s closing levels as WS 82.5 was achieved early on, but this was short-lived as a cargo to the West was covered at WS 70, a decline of 7.5 WS points. Voyages from the Black Sea fetched WS 80 for the Med and WS 77.5 for the UKC. Prompt tonnage was ample in supply in spite of continuing port strikes in France.
The Caribbean TD9 market traded range bound between WS 97.5 to WS 100 for most of the week unti la couple of ships were fixed at WS 96.25 at week’s end. Posidonia week took the wind out of the Med Afra market’s sails as rates dipped to WS 102.5 and appear poised to keep falling given the length of the tonnage list.
The Caribbean market was inactive this past week and rates dropped to WS 112.5 levels up-coast. One mid-week prompt replacement out of East Coast Mexico was reportedly covered at WS 127.5, but there was little to talk about after. The UKC-Med market softened to WS 112.5 out of the Med and WS 115 off the UKC.
The UKC/USAC route opened at the WS 110 level and then settled at WS 105. Record lows in the US Gulf are causing ballasters to continue considering heading to the UKC. The US Gulf market continued its downward spiral with a plethora of tonnage available through the first decade of June. The USG/UKC route came off another 7.5 WS points and was being fixed at WS 62.5 – a new yearly low.