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Weekly Tanker Summary

June 17, 2016

The following is an overview of tanker spot market activity for the week ending June 17, 2016


Volume in the AG fell week-on-week and rates for AG/East declined to the high WS 30s, down over 20 WS points from the close of the previous week, while AG/West dipped into the mid-WS 20s.   On the other hand, activity picked up in the Atlantic Basin as 13-14 fixtures were reported.  Despite the uptick, WAFR/China rates fell to the low WS 50s, while an East Med/UKC cargo was concluded at WS 50.  In the Western Hemisphere it was reported that a rate around US $3.4-$3.5 million was done to West Coast India from the Caribbean. 


We saw strong volume in West Africa for the first decade of July with about 20 ships fixed so far and several charterers still looking for tonnage and spot rates capped at about WS 87.5 for TD20.  We will see if owners can press for higher, but summer is looming and rates could hit the wall suddenly if next week starts slowly.   In the Black Sea, rates drifted higher topping in the mid-WS 80s, but it might be difficult to sustain rates with the lack of activity we saw by mid-week.  Rates on Aframaxes are only around the WS 100 level, so no pressure from that class. 


The TD9 route has been trading between worldscale 95-100 for over a month, but it appears further downward pressure is possible.  A lengthy tonnage list and overall lack of inquiry dragged rates down to the high WS 90s for cross-Caribs and WS 90 was assessed up coast.   In the Black Sea/Med, there was enough tonnage to absorb the post-Posidonia uptick in fixing, which kept rates in check between WS 95-97.5 for the majority of the week. 


It was a quiet week in the Caribbean with little reported activity.  Vessels are stacking up and the market will likely soften to sub WS 110 levels when tested.  In the UKC-Med, there was a flurry of fixing which cleared out a glut of natural tonnage, but rates took a hit.  The market dipped down to WS 85 for trans-Atlantic voyages, but owners are now trying to get back into the WS 95-100 range.


The UKC/USAC market opened soft at the WS 105 level before rates rapidly fell to the WS 90s.  The Bottom was reached at WS 87.5 as a cargo was failed at this level.  Meanwhile, the US Gulf market bounced off its bottom on the back of an option that was done at WS 82.5, a 20 WS point gain week-on-week.  While this was just an option, it helped to catapult the TC14 market to the WS 75 mark, the highest level recorded for this market since the end of May.