Weekly Tanker Summary
Aug. 12, 2016
The following is an overview of tanker spot market activity for the week ending August 12, 2016
VLCC
Activity increased in the Arabian Gulf week-on-week and rates rebounded slightly for both AG/East and AG/West as owners took advantage of charterers’ needs to take modern tonnage. An options cargo on the AG/East route fixed at WS 40, while cargoes, without options, stuck to older vessels and paid around WS 34-35. The TCE for an AG/US Gulf cargo followed by a Caribbean/Singapore cargo paid around $29,000/day while an AG/Japan cargo traded around US $21,000/day.
There were about 4-5 VLCC fixtures reported in the Atlantic Basin this week, with two in West Africa, two in the Western Hemisphere and one in the UKC. Rates remained steady with West Africa to West Coast India done at US $2.45 million, which is equivalent to WS 39 to the East. Voyages into China paid around WS 40-41. The Caribbean/Singapore route traded slightly under US $3.0 million, while a Brazilian cargo to the East took WS 38
SUEZMAX
The lack of activity and low rates continued in West Africa as only about six ships were reported fixed or on subjects, while a few cargoes remained outstanding. Several vessels with various discharge options including the UKC-Med and South America were fixed at WS 35, a TCE of less than US $7,000/day. In the Black Sea, rates drifted down further this week as only six vessels were reported fixed or on subjects. Black Sea/UKC-Med cargoes traded at WS 45, while voyages to the East paid US $1.5 million basis Italy/Singapore and US $2.4 million basis Ceyhan/China.
This week was relatively active in the Americas, but rates did not improve. Singapore cargoes bound for the East traded down to US $1.65 million, while one heat cargo from China paid US $2.25 million. Brazil exported three cargoes this week and one charterer was active taking vessels East Coast Mexico and Caribs/T-A.
AFRAMAX
The Caribbean market continues to trade along the bottom between WS 72.5 and WS 75 with no rebound in sight. One bright spot is that a few cargoes were worked off slightly forward dates, which suggests charterers also think the market has bottomed. In the Black Sea/Med, charterers have pushed the market down to WS 67.5 where it remains steady ahead of the weekend.
PANAMAX
Vessels continued to quietly disappear in the Caribbean and the list thinned considerably for any cargoes loading prior to the 20th. The market made no change in freight up-coast and was reported fixed in the WS 80s, but steady inquiry like we saw last week could give rates a slight boost. There was some activity in the UKC-Med market but rates remained at or around the WS 80 levels for trans-Atlantic voyages. Inquiry trailed off mid-week and we expect little change in the market going forward.
CLEAN
Rates traded higher this week on MRs in the UKC as one cargo bound for the USAC with paid up to WS 100, trading 20 WS points from the market open. The front end of the list tightened as cargoes were steady and owners maintained WS 90-95 levels. The market in the US Gulf is approaching all-time lows as the USG/UKC traded down another 7.5 WS points this week and was last put on subjects at WS 50. Following the same trend, the USG/Caribs route has softened an additional US $55,000 week-on-week as it fixed a few times at US $275,000.
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