The position list still looked to be long, as we move in to 2nd week of fixing ex MEG and into the summer months, Fearnleys said in its weekly tanker report.
Charterers were in the driving seat in the past week, as a lack of enquiry was seen in the market, resulting in rates decline.
However, the most recent activity showed more resistance from owners, as quietly-made deals are being sealed, and eventually surfacing onto the market. There is a more limited supply of vessels for the time being than previously thought, and a potential firming of rates might be the result.
Suezmaxes in West Africa saw plenty of activity at the start of last week.
This was in combination with strengthening VLCC rates, which helped Suezmaxes. But the situation was short lived and at time of writing (Wednesday), we are facing a much slower market with falling rates.
As the French strike situation was resolved there was an injection of more or less prompt
Ships, which only added further downward pressure.
In the Med/Black Sea cargo activity has been limited for some time now. Recent cargoes being worked in the first week fixing window generated many offers and naturally rates also came off in this area.
Aframax rates in the NSea and Baltic remained firm as we move into early July
fixing dates. However, both markets should slide sideways this week as the position list looks fairly balanced.
Moving into next week, we could see rates soften slightly as more vessels will be coming back into position.
Med and BSea rose by 15 points last week. Statoil paid 10 points higher on a Ceyhan cargo – causing somewhat of a panic among charterers. A lot of cargoes were thrown in to the mix and owners saw their chance to get some extra points.
This week we have seen some replacements done out of BSea at WS125, and as Trieste has two berths down for maintenance and other Key ports experiencing a slow turnaround, we expect the market to stay around WS120 for the rest of this week.
Brokers reported that three VLCCs were taken for short term storage recently.
The 2000-built ‘Arenza XXVII’ was said to have been fixed to Clearlake for one to four month storage duties at $32,000-$33,000 per day.
The same vintage ‘Delta Millenium’ was fixed to Litasco for one to two months storage at an unknown rate, while the 2001-built ‘Silver Glory’ was believed fixed to PST Ship for one, option one, option one months at $22,000/$26,000 and $29,000 per day, respectively.
TEN has announced that it has taken delivery of the Aframax ‘Elias Tsakos’, which is part of a 15-vessel newbuilding programme and the first of the nine built for for long term charter to Statoil.
The 112,700 dwt vessel was delivered from Daewoo Mangalia and will immediately be employed by Statoil giving potential gross revenues in excess of $100 mill,TEN said.
Three more newbuilding Aframaxes are due to join TEN’s fleet by the end of this year.
Navig8 Chemical Tankers, a joint venture between the Navig8 Group and Oaktree Capital Management, has entered into a $55 mill secured loan facility to finance the company’s first of two 25,000 dwt newbuildings.
The stainless steel chemical tankers are currently under construction at Japan’s shipyard Kitanihon Shipbuilding.
Navig8 Chemical Tankers said that the loan facility covers 65% of the vessels’ contract price and has been provided by Credit Suisse.
The company ordered a series of six stainless steel chemical tankers in January, 2014.
The only other newbuilding news concerned Lundqvist ordering another Aframax at Sumitomo for $52 mill. The vessel is due for delivery in 2018.
In the S&P sector, the 2000-built Suezmax ‘Sikinos’ was reported sold to Indian buyers thought to be Aza Shipping, for $19.5 mill, the same level as the 2000-built ‘Cosmic’ and three sisters were rumoured sold.
Elsewhere Kyklades Maritime was believed to have agreed to sell the 2011-built ‘Nissos Kythnos’ for about $39 mill depending on the outcome of successful long term charter negotiations by the unnamed purchaser for an ENAP tender.