A sharp increase was seen at end last week for MEG/East voyages and the firm trend continued this week after a slow start partly due to US Labour day and APPEC well under way in Singapore, Fearnleys said in the broker’s weekly report.
However, there is a build up of tonnage as we approach the end of September. Steady demand is needed to maintain the present trend, but will it be seen with 96 deal thus far and September expected to be a slow month?
Suezmax activity from West Africa increased this week with laycans for the last 10 days of September. Earlier, it looked as though the market was going to firm up a bit but unfortunately for the owners, due to an ample position list and limited activity in other typical load areas, rates stabilised basis TD20 at WS57.5 for the time being.
The only other Suezmax route with increased activity seen during the past week was MEG/West, which could limit the numbers of vessels open Singapore/Indonesia area from ballasting towards West Africa.
North Sea Aframaxes saw no change with the cargoes in play getting covered at WS95 for the standard cross UK/Cont voyages. In the Baltic on the other hand, rates dropped about WS5-7.5 points last week mainly, due to a surplus of ships that went short and came quickly back into fixing position. The Med/Black Sea rates remained stable just below WS80.
Simultaneously, we experienced increased activity in both the Med and the Black Sea, which caused the tonnage list to shrink rapidly. We expect some upward pressure in the coming week, as there is still plenty of September lifting’s to be covered, Fearnleys concluded.
Among the fixtures reported by brokers recently was Total’s charter of a Maran Tankers’ newbuilding for five years at $39,000 per day and Litasco’s short term timecharter of the 1997-built VLCC ‘DS Vada’ for two, option one, option two, months at $42,500 per day.
Elsewhere, Flopec was said to have taken the 2005-built MR ‘Didimon’ for two years at $17,800 per day.
According to various newswires, New Zealand-based Coastal Oil Logistics (COLL) is to charter two new MR product tankers from ASP Ship Management as replacements for two tankers that have been in service in the coastal trade for some time.
The Australian owned tankers in service - the 1999-built MR ‘Kakariki’ and the 2004-built Handysize Torea - have been on charter to COLL since being delivered from their builders.
The reports from New Zealand said that the new vessels will be built in South Korea and include a 50,000 dwt products/bitumen carrier, which will be delivered in June, 2017. The other replacement will arrive in February next year.
COLL’s CEO Jon Kelly reportedly said the new ships would be much more fuel-efficient than the older vessels, which will also help reduce emissions.
There were some interesting deals reported in the S&P sector, including Hafnia Tankers rumoured purchase of six Geden owned 2007-2008-built Handies for $21.3 mill to $23.2 mill each on a bareboat higher purchase basis.
The vessels involved were thought to be the ‘Steel’, ‘Stone 1’, ‘Style’, ‘Silent, ‘Sky’, ‘Star 1’ and ‘Single’. The Copenhagen-based concern would not confirm or deny the deal when asked by ‘Tanker Operator’.
The Onassis Foundation (Olympic Shipping) was said to have purchased three 2010-2011-built 320,000 dwt geared OBOs ‘Elizabeth M’, ‘Abbey’ and ‘Rosey R’ for $195 mill in total.
They are thought earmarked for conversion to full VLCCs, probably at Oman where similar work has taken place recently.
Malaysian interests were thought to have agreed the purchase of the 2003-built Aframax ‘Coral Sea’ for storage at a price quoted as $31 mill. It was thought that there long subjects attached to this deal. Hong Kong-based Sea Fortune was believed to have purchased the 2007-built MR ‘Nord Optimiser’ for $21 mill.
The only vessels reported leaving the fleet was the 1981-built Handysize ‘Ralda’ believed sold to Bangladesh breakers for an undisclosed fee and the 1989 small MR ‘Nuevo Pemex III’ sold to India on private terms. She was reportedly renamed ‘Mex III’ for the delivery voyage.
Reports from Myanmar suggest that the state-owned Myanmar Five Star Shipping Corp plans to buy several oil tankers to meet the country's growing demand for oil shipments from the country.
The reports did not say whether the vessels will be secondhand or newbuildings.
In the newbuilding sector, LPG carriers dominated recent proceedings, with several contracted with Hyundai Mipo.
For example, Solvang was said to have ordered two 78,700 cu m LPG carriers at HMD for 2017 delivery, while Evalend reportedly ordered a pair of 38,000 cu m LPGCs for $50.5 mill each and Eletson ordered two, plus two vessels of the same size for $51 mill each. In addition, Eletson was said to have contracted a 12,000 cu m LPGC for $38 mill.
Reports from China indicated that Tianjin Tianhai Investment Co, formerly Tianjin Marine Shipping, will engage in a public tender for the construction of four VLCCs for up to $400 mill, according to an announcement on the Shanghai Stock Exchange.
Tianjin Tianhai said that an option for four more VLCCs could be added.
The company said that it has completed tender’s preparation and had commissioned China National Technical Import & Export Corporation to carry out the tender process.