EMF Weekly 16
Spot earnings remain in soft for Aframaxes, as a result of relatively low activity for refineries globally. Reduced supply of oil from Venezuela and Iran is expected to persist, yet we see that demand growth after Aframaxes is on solid 3.9% in 2019 compared to weak 1.9% in 2018. This is supported by several long-haul export trades from the US and Brazil mainly to Asia. The broad consensus that the market should rise to significantly higher levels in the future continues to put pressure on 1 year lease contracts, as we have seen some contracts been drawn as high as $ 23,000 the day. We then see that the crude oil tanker transactions are going for even higher prices in today’s market, as reflected in the price of a 159.00 dwt Suezmax built in 1998 for of $ 11.5m.
Aframax – 1 yr T/C : $20.500
Aframax – Average Spot: $11.766
Dry Bulk weekly:
The Baltic Dry Index has increased further since the conclusion of the Chinese New Year, up by 31 points compared to last week (821 points as of April 23), this much due to increased activity for the larger vessels in the segment. The dry cargo market has now really started to pick up since the very difficult start of 2019, as we are finally above B / E. 1 year lease contracts increase almost in all classes in the dry cargo segment.
Capesize – 1 yr T/C: $14.000
Panamax – 1 yr T/C: $11.000
Aframax built in 2004 at 112,000 dwt go for $ 14.3m, otherwise there are no other significant interest transactions outside the transaction for the Suezmax mentioned in the first paragraph of the weekly update.
Drybulk: Last transactions for the larger dry cargo vessels entail a sale of a Capesize of 184,000 dwt built in 2002 for $ 12m.