We have had an adventurous week in the tanker market. After the Russia refused to participate in further cuts, the oil and tanker market has been turned on it’s head. Last week, the largest tankers had an average earnings of $279,259 per day. This is normally rare. Nevertheless, better rates in await in the near future. Looking at the availability to the new VLCC, only four vacant ships remain this month. There is positive news for Suez and Aframax owners who will benefit from this. We see that the Suezmax segment hit an average earnings of $120,870 last week, so we expect a solid interest rate increase in the Aframax segment this week. In spite of what is happening in the world, so it seems that we have moved into a perfect storm for large tanker rates. It also looks like these earning levels have a firm foundation, and it is rumored that Saudi Arabia will produce up to 13m bpd. This will have a big impact on the demand for tankers.
Aframax – 12 month TC: $21,500 pr. day
Aframax – Average spot market rate: $42,943 pr. day
The Panamax segment had an average earnings of $10,520 per day, up 12% from the previous week. We note that earnings have risen somewhat with the Panamxes, while earnings from the largest dry cargo vessels are still fragile. There is light in the tunnel, as rumors are that the Chinese are on their way back to work and that one can expect everything to be back to normal by the end of April. This will be good news for the dry cargo market, as China accounts for about 40% of all imports in the dry cargo market.
Capesize 12 month TC: $12,750
Kamsarmax 12 month TC: $11,625
There were two vessel transactions of interest last week. A Suezmax (159,899 dwt, built in 1998, Daewoo (DSME)) was sold for $14.3m. A very strong price. An Aframax (106,650 dwt, built 2005, Koyo Dock) was sold at $15.3m. The ship was almost sold in January for $18.5m. Looking at the price difference here, as well as the price the Atlas Voyager ($16.5m) was sold for the week before, the prices look somewhat weak.
No transactions of interest.