As a result, rates sharply rebounded on the major VLCC routes with the momentum continuing upward, Fearnleys said in its weekly report.
March stems were still being worked this week in the MEG and with April stem-confirmations just around the corner, this trend may well continue.
West Africa/East was also affected and charterers negotiated tonnage well into April to secure vessels.
Suezmaxes saw steady fixing last week with rates going sideways for West Africa/Uk-Cont-Med voyages. But by the middle of this week, we were experiencing a market which was gaining more momentum after several vessels disappeared under the radar. The rates have gone up by 2.5-5 points for TD20 voyages.
It seemed that Suezmaxes benefited from the firming of VLCC rates and the firm fixing activity in Med/Black Sea. It will be interesting to see if the rates hold up in the week to come, as the current fixing window for end-month cargoes out of Black Sea are coming to an end, Fearnleys said.
Aframax owners encountered another flat market this week fixing at WS92.5 cross N Sea and WS70 out of the Baltic. There is still quite a lot of available tonnage that will need to be absorbed before this market will firm rate wise.
However, going forward to the end of the third week of March, loadings could prove to be a bit more interesting from an owners perspective.
In the Med and Black Sea, the market has gone through the roof, due to lack of tonnage for early third week loadings. WS120 was fixed out of the Black Sea and it’s just a question of time before we see the same levels in the Med.
Going forward this market will remain strong, Fearnleys concluded.
Only a few MRs appeared on brokers charter lists this week. These included Cargill fixing the 2013-built ‘Leopard Sea’ for six months at $17,750 per day.
Petrobras reportedly came into the market and took the 1998-built ‘Portman’ for three years at $17,600 per day and the 1999-built ‘Chiltern’ for two years at $17,750 per day.
Koch was said to have taken the 2007-built ‘Nord Observer’ and ‘Papilion’ for 12 months at $16,750 per day and the 2003-built ‘Boraq’ for the same period at $17,500 per day.
CCI became active again in fixing the 2006-built ‘Advance II’ and ‘Reliance II’ for 12 months each at $17,250 per day.
In the secondhand market the 1999-built Aframaxes ‘Great White’ and ‘Pacific London’ were reported sold for what one broker remarked was the remarkable price of $15 mill each to Soechi and Kakra, respectively.
An even older Aframax, the 1995-built ‘Kassos’, was thought sold to Arya for $8.3 mill.
The 2003-built VLCC’ Damavand’ was thought committed to undisclosed interests for $37 mill.
Another dirty trader, the 2001-built 39,551 dwt ‘Searambler’ was reported as sold to UAE buyers at $11 mill.
In what is effectively an in-house deal, d’Amico Tankers (Ireland) is to purchase the 2003-built, 40,081 dwt ‘Cielo di Milano’ from d’Amico Shipping Italia for $14 mill.
”This purchase adds to our fleet a unit that we know very well, and that allows us to engage it on a specific trade route that meets perfectly with its technical features,” Marco Fiori, d’Amico International Shipping CEO, said.
Leaving the fleet was the 1989-built MR ‘Martha Petrol’ reported sold to Bangladesh breakers for $250 per ldt.
In a dearth of newbuildings, Lundqvist was said to have ordered a fourth Aframax at Sumitomo for $52 mill for October, 2018 delivery and Fairfield-Maxwell contracting a third MR at Onomichi for June, 2019 delivery.