MEG rates have dropped further on limited activity, with corresponding daily returns in single digits, Fearnleys said in its weekly report.
The Atlantic basin has fared slightly better, with a number of co-load enquiries from W Africa, spurred by a heated Suezmax market, and by increased US export activity.
Suezmax rates in the Atlantic were still firm, as we are ending June West African loading dates.
Rates were very date sensitive as a few charterers were caught out on early dates having to pay up for owners services.
Black sea numbers also improved as uncertain itineraries forced charterers to pay up for safe positions.
With the dire state of the current West African VLCC market, some charterers were seeking to combine stems to co-load on a VLCC where feasible and as a result, adding potential downward pressure on Suezmax rates.
The coming days will be all about owners keeping the pressure on, but they would need help from the VLCC market in order for this upturn to last, Fearnleys said.
A rather quiet week was experienced in the North Sea and Baltic Aframax segment.
Rates moved sideways for most of the week, with a slight downward correction seen in the last couple of days.
TD17 is currently trading below WS70 levels for a straight Baltic/UK-Cont voyage.
Charterers can still enjoy a healthy tonnage list in the north for stems in the natural window.
Following a market drop in Mediterranean and Black Sea at the beginning of the month, the market stabilised last week with TD19 being pegged around WS80 levels throughout the week.
A recent slight pick up in activity following a quiet Whit Monday was not enough to satisfy the number of prompt ships in the area.
We expect the market both in the North as well as Black SeaMed to remain steady/soft for the balance of this week, while we all wait for activity and returns to improve, Fearnleys concluded.
In other chartering news, brokers reported that the 2013-built VLCC ‘Eagle Vancouver’ had been fixed to Total for three years for $31,000 per day, while BP took the 2017-built LR2 ‘Nord Dolphin’ for six months at $20,950, plus options and Trafigura was believed to have committed the 2017-built LR1 ‘Epicurus’ for 12 months at $18,750 per day.
In the S&P sector, Performance Shipping has confirmed it was the buyer of two Maersk LR2s reported sold recently for $60 mill en bloc.
Meanwhile, Nikolaos Vafias has extended his investment in tonnage to almost $90 mill in less than two weeks (see last week’s news) with a swoop for a Brightoil Petroleum Aframax auctioned in Singapore.
Tanker market sources said Vafias had won the race for the 107,000 dwt ‘Brightoil Lion’ (built 2010) in what is a rare move in the secondhand tanker market for the Vafias family.
They suggested he has secured the vessel for $26 mill in an auction, which is said to have attracted nine other competing bids, including multiple Greek owners.
Other sales reported included the 2007-built Aframax ‘Sakura Princess’ to TV Trans for $23 mill, another Aframax, the 2008-built ‘Mucua’ to undisclosed interests for $20.1 mill, while thew 2003-built Aframax ‘Ever Rich No 18’ was reported sold to Greek interests for $14.5 mill.
The 2012-built MR was said to have been sold to Turkish interests for $15.1 mill and Hansa Tankers was believed to have picked up the 33,000 dwt ‘Bow Tone’ (built 2009) for in excess of $18 mill.
Turning to the newbuilding segment, Avin International ordered two Suezmaxes at Hyundai Heavy Industries, with brokers reporting a price of $64 mill per ship.
They will be delivered in 2021 and will be of Tier II and fitted with scrubbers.
Chartworld wasa said to have exercised options for another two Aframaxes at New Times for $46.5 mill each, bringing the number of orders up to four. Another four options were also agreed.
Valles was also said to have declared an option for another Aframax at Sumitomo for $50 mill, which includes the fitting of a scrubber. This brings Valles Aframax orderbook up to two.
Capital was reported to have signed a Letter of Intent for four, plus four optional MRs in two tranches, at STX.
Ocean Yield has confirmed that it has taken delivery of the VLCC ‘Nissos Despotiko’ . The vessel was delivered from Hyundai Heavy Industries and is the second in a series of four VLCCs to be delivered to the company this year.
Upon delivery, the vessel commenced a 15 years’ bareboat charter to Okeanis Eco Tankers Corp with a five years’ sub-charter to Koch Shipping Pte Ltd.
Okeanis Eco Tankers was established in 2018 by the Alafouzos family to take over its fleet of modern tankers and tanker newbuildings.
With seven tankers built 2015 - 2018 and eight VLCCs for delivery in 2019, the Oslo listed company will focus on eco-designed vessels fitted with scrubbers.