Markets - Waiting for the Autumn

Sep 14 2018

General fixture volumes for VLCCs were still lagging this week.

However, some more activity was seen in the MEG, but this was also lower than normal, whilst West Africa was still quiet.


Owners were still waiting for a flurry of fresh business and have tried to keep the powder dry, Fearnleys reported. 


Some doubt has crept in but rates were relatively stable while owners were trying to schedule ships back to the loading areas for the long awaited boost in the market later this autumn/early winter.


As described in last week’s update, the sensitive Suezmax market in the Atlantic later re-bounded on the back of a flurry of fresh cargoes.


Having started this week on a quiet note, again, rates moved sideways.


The hurricane season in the Americas have made those lucky few with safe ships able to capitalise and push rates up as a consequence.


Early ships in West Africa are still being controlled by the strong owners and we don’t expect them to disappoint any of their peers in the near future.


The market situation going forward looks balanced, but with a downside potential unless we see more cargoes coming into the market.


In the North Sea and Baltic, Aframax rates continued moving sideways going into this week, despite maintenance in the strategic port of Primorsk.


Once again giving short options out of the Baltic seemed to be the Achilles' heel of the North, and we should see another small upward correction prior to the weekend.


That being said, there is still sufficient tonnage available for the end of this month, and the sideways movement should continue next week.


In the Mediterranean and Black Sea, we have seen an increasing tonnage list during the past week. Even with delays in some of the major ports, there are still plenty of ships to choose from.


With this many ships and a normal Black Sea programme, we expect the market to drop below WS100 for the first time in over a month, Fearnleys concluded.


In the newbuilding sector, Empire Navigation was thought to have ordered four MRs at Hyundai Mipo for 2020 deliveries. They were believed contracted on the back of period business with Cargill.


As for the S&P activity, Modec was said to have bought the 2002-built VLCC ‘Britanis’ for a conversion project, while Embiricos was believed to have purchased the 2004-built VLCC ‘Kai-Ei’ for $23.5 mill.


Eurotankers was said to have picked up the 2009-buit LR2 ‘Sigma Integrity’ for an undisclosed sum.


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May 2019

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