This created a situation of adding momentum over the past week. Rates went up sharply as tonnage for October became tighter.
However, the earnings were barely $25,000 per day for MEG/East voyages.
WAfrica/East rates were also slightly up from last done but eyes switched to BOT stem confirmations and the increased activity in West Africa, as November dates came into play.
Suezmaxes saw TD20 peak at WS110. There was a sharp correction downward, as tonnage increased and owners resilience eroded. Charterers sat back for the early 3rd decade allowing rates to slide into the mid WS80s.
The Med and Black Sea regions started to see some activity with notable enquiry for eastern destinations. Rates fell but not at the pace seen in West Africa, due to owners insisting that the East commanded a decent TCE return to persuade tonnage to reposition for the winter months.
The Med and Black sea will follow suit, as sentiment further erodes and fundamentals dictate the next move, Fearnleys said.
Aframax owners in the North Sea and Baltic managed to turn the market to their advantage and pushed rates up by WS30 points. This was mainly due to the Russian loading programme ex Baltic being the longest since April.
However, rates are again under downward pressure, as more ballasters were coming to the area. The CPP market looking even less promising going forward, so LR2’s were seeking dirty cargoes.
Less activity and as a result, a longer tonnage list made it easier for charterers to create competition. For example, Petrogal received 11 offers and fixed W70 ex Sidi Kerir.
At this stage, the only two things that can salvage this market would be the ongoing maintenance in Trieste, combined with possible increased weather delays in the Turkish straits, Fearnleys concluded.
Newbuilding orders were again at a premium.
Euronav announced that it had signed two long-term time charter contracts of seven years each with Valero Energy for Suezmax tonnage with an Ice Class 1C capability starting in 2018.
To fulfil this contract, two high spec Ice Class Suezmaxes have been ordered from Hyundai Heavy Industries. Specifications for these vessels include a substantially increased steel structure, specific emissions controls and other bespoke operational capabilities.
Delivery of these vessels is expected in early 2018 when each of the timecharter contracts is due to begin.
CEO Paddy Rodgers said: “Euronav and its predecessors have been serving the Quebec refinery with purpose built newbuildings since 1998. In a world of continuous change our commitment to serve our customer remains a constant point.”
There have been a few sales with lease backs reported recently.
For example, Concordia Maritime confirmed that it is selling the IMOIIMAX tanker ‘Stena Image’ to a Japanese financial institution on a leaseback agreement for $37.5 mill.
The vessel will be chartered back to Concordia on a bareboat basis for eight years, with annual purchase options from year four onwards.
Her delivery to the buyer is scheduled for the middle of this month. She will continue to operate in the Stena Weco Pool.
Fearnley Securities has acted as sole arranger and financial advisor to the company for the transaction, Concordia said.
Ocean Yield has also announced the delivery of the 49,000 dwt IMO II chemical tanker ‘Navig8 Tourmaline’ from STX.
Following her delivery, the vessel commenced a 15-year ‘hell and high water’ bareboat charter to Navig8 Chemical Tankers.
She is the seventh in a series of total eight chemical tankers that will be chartered to Navig8.
Navig8 Chemical Tankers has also revealed it has cancelled contracts to build five IMO II MRs at STX.
The vessels, which were ordered in October and December, 2015, were scheduled for delivery next year. Navig8 initially ordered a series of nine MRs. Two have been delivered and another two are imminent, including the ‘Navig8 Tourmaline’ in October (see above) and ‘Navig8 Tanzanite’ in November.
Navig8 said that all pre-delivery instalments have been refunded by the Korea Development Bank, together with interest, as part of the refund guarantee provided by the bank.
Elsewhere, MOL took delivery of the 50,000 dwt methanol carrier ‘Manchac Sun’ from Minaminippon Shipbuilding on 28th September.
’Manchac Sun’ is one of the world's first vessels in a series equipped with 2-stroke, dual-fuelled, low-rev main engine, capable of running on methanol, which is a biodegradable clean burning marine fuel.
She will be operated on a long term timecharter to Waterfront Shipping. Waterfront operates the world's largest methanol deepsea tanker fleet.
Meanwhile, brokers reported the charter of the 2005-built Suezmax ‘United Kalavryta’ to ST Shipping for one to three months at $23,000- $25,000 per day.
Laurin reportedly took the 2009-built MR ‘Omodos’ for 12 months at $13,000 per day, while the 2007-built MR ‘Jag Pranav’ was believed fixed to HPL for 90 days at $14,400 per day, basis delivery West Coast India.
In the S&P sector, Korea Line was believed to have purchased two MR newbuildings on the back of a charter to Parakou.
The 1998-built Aframax ‘Nassau Energy’ was thought to have been sold to Karadeniz for $11.8 mill. This maybe for another power conversion project.
A 1998-built MR, ‘Skazochnyj Most’, was said to have been sold to Singapore interests on subjects with her SS overdue. The price paid was believed to be $5.3 mill.
Soechi was thought to have purchased the 2001-built Handysize ‘Poulopum’.
Leaving the fleet was the 1988-built MR ‘Zeta’, which was said to have been sold to Pakistan breakers for $291 per ldt.