Markets - Trying to push rates up

Jun 08 2018

Another week of stable VLCC volumes on all the major routes, Fearnleys reported.

A somewhat tighter tonnage list of modern ships from the East has given owners a few opportunities to try to push rates up.


However, the result has been negligible over the past week for MEG and West Africa/East. Most attempts to push rates up have been countered by charterers using own or controlled ships, or the ‘older’ types for those able to use them.


Somewhat tighter tonnage list was seen in the USG/Caribs where rates came under some upward pressure. All in all, the situation is stable throughout for now, the broker said. 


This week, Aframax charterers in the North Sea and Baltic managed to push rates back down towards the bottom levels. With the current higher bunker prices, it will be a challenge to go further down.


We expect the market to stay at current levels going forward with a healthy looking tonnage list, at the time of writing (Wednesday), Fearnleys said.


In the Mediterranean and Black Sea, the same scenario was played out as seen many times before. The good market attracts ballasters, but charterers have done a good job holding back their cargoes.


This combination pushed rates to WS100, but within the week, we expect it to be closer to WS90, Fearnleys concluded.


Elsewhere, Kawasaki Kisen Kaisha (K Line) has taken delivery of its latest VLCC, the the 311,000 dwt ‘Tedorigawa’.


The VLCC was built by Nantong Cosco KHI Ship Engineering (NACKS) and was handed over to K Line on 4th June.


K Line claimed that the vessel achieves about 20% less fuel consumption, compared with the company’s conventional VLCCs, achieved by removing the bulbous bow, applying an ultra-long stroke slow speed main diesel engine and a highly-efficient large diameter propeller.


Guggenheim Capital is reported to be behind an order for two VLCCs at DSME for 2020 deliveries. Each vessel was reported contracted for $90 mill, which includes the fitting of a scrubber.


Yara was rumoured to have ordered up to four MRs at Hyundai Mipo for 2019-2020 delivery, while Marubeni was thought to have ordered two LR2s at Onomichi amd Oceangold was believed to have ordered another two MRs at STX.


More enforced bank sales have been reported, mainly involving Toisa units. Greek interests were said to have picked up the Suezmax ‘United Kalavrvta’ for $18 mill and the Aframax ‘United Fortitude’ for $22 mill.


Thenamaris was said to be behind the purchase of the 2004-built Aframax sisters ‘Sparto’ and Pantelis’ for $11.4 mill each, while Chinese interests were thought to have purchased the 2001-built Handysize ‘CPO Larisa Hestia’ for $6 mill.


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