EMF Weekly 21

Tankers :

The Aframax spot rates remain at the same level as the previous week with a slight upturn. Furthermore, we see that contracts with a duration of 12 months further strengthen in the positive trend we are in. What is worth noting is that so far this year, Aframax has delivered higher spot earnings on average than both the somewhat larger Suezmax and the substantially larger VLCC. This testifies that the activity and demand for Afra’s is solid. Furthermore, we see that exports of energy from the US to Asia increased by 106% in 2018 and China’s imports of oil have increased by 7% YTD. With this we see that the trends in the market are longer voyages (ton mile demand), which is expected to strengthen in the future and further put pressure on today’s tanker fleet. When we also know that we have the lowest order book since the end of the 90s, we are beginning to witness a tight tanker market. This will drive rates and values further up towards and beyond mid cycle values.

Aframax – 1 yr TC : $21.652 per day
Aframax – Avarage Spot earnings : $16.967 per day

Bulkers :

Capesize’s earnings have increased by 18% since the week before due to increased iron ore production in Brazil and Australia. At the same time, we observe an increase in coal transport in South Africa and the areas north of the Atlantic. This means that we observe the highest earnings in the Capesize segment since mid-January! The Panamax market saw a slight increase in the rate level in the Atlantic. We also saw the earnings in the Pacific as several players chose to sail their ships to the Atlantic or the Indian Ocean, thereby tightening the offer in the Pacific.

Capesize – 1 yr TC : $15.750 per day
Panamax – 1 yr TC : $11.650 per day

S&P :

Tankers
No transactions of interest

Bulkers
It has been a very quiet week in the secondhand market for bulkers. However, two 2009 built Panamaxes (78,800dw) changed hands to a total value of USD 27.8m