Indeed, rates have softened on virtually all of the major routes. The cargo volumes in West Africa, Caribbean and North Sea were relatively slow and tonnage has built up, Fearnleys said in its weekly report.
The many newbuildings delivered was part of the problem. The August programme ex MEG is due, but measured, whilst West African cargoes appear to be almost finished.
In addition, the soft Suezmax market continued last week with limited activity west of Suez. Charterers appeared to have had a thin programme for 1st decade ex WAfrica and are now working up to the middle of August laycans.
The West African market did not receive any help from other areas, due to limited activity in the Caribs and Black Sea. However, there are those that think the market has bottomed for now.
Earnings are at the lowest thus far this year resulting in some owners deciding to hold back and keep their vessels spot off Gibraltar. Somewhat more activity was seen in the MEG, but rates remained flat, due to an oversupply of tonnage.
Aframaxes trading in the N Sea and Baltic hit an earnings year low. Rates dropped to low WS60s level ex Baltic. We will also see a downward correction in the N Sea to WS90, Fearnleys said.
Despite decent activity level, the abundance of available tonnage in the area reinforced the soft momentum. Since last week, rates in the Black Sea and Med have dropped by another WS10-12.5 points.
Cross-Med activity has been exceptionally low and Black Sea cargoes alone were not enough to keep supply and demand in balance. The cargo programmes available show that August will not be a particularly heavy month.
It is time to hold on tight, as the market is looking very soft going forward, Fearnleys concluded.
Navig8 Product Tankers has secured a $66 mill senior credit facility from ABN Amro Bank Singapore for the post-delivery financing of two LR1s.
The product tankers are currently being built at South Korea's SPP Shipbuilding.
The credit facility comes in two separate tranches – a $13.2 mill commercial tranche and a $52.8 mill tranche insured by Korea Trade Insurance Corp.
This facility provides financing of about 65% of the new vessels’contract price.
The seventh IMOIIMAX MR in a series of 13 vessels, was recently delivered from Guangzhou Shipbuilding International.
‘Stena Imagination’ is jointly owned on a 50-50 basis by Stena Bulk and Indonesian Golden Agri Resources (GAR). She will be operated by Stena Weco.
Almi Tankers has denied any involvement in a reported order for two VLCCs at HHI.
The vessels were said to have been the subject of a Letter of Intent for about $85.5 mill each.
Greek-based Times Navigation was rumoured to have swapped a six Ultramax bulk carrier order for four, plus three optional MRs at CIC-Jiangsu.
They are due to be delivered in 2018-2019.
Recent charters reported by brokers included Suncor taking the 2004-built Aframax ‘Sparto’ for six months at $20,800 per day.
In the MR segment, Navig8 was said to have taken the 2008-built ‘Star Kestrel’ for five months at $14,500 per day.
In the S&P sector, the 2005-built MR ‘Signal Maya’ was said to have been sold to Benetech for $15.5 mill, while the Great Eastern purchase mentioned last week was revealed to be the ‘Challenge Prospect’ for $13.5 mill.