It was a very quiet week across the segments. The Aframax rates seem to have bottomed out, and activity as early as next week appears to be significantly better. The normal market that we saw ahead of Covid-19 is expected to resume during Q1 2021. It is important to emphasize that the tanker market today is facing extreme stimuli where almost all of the world’s oil-producing nations are cutting back on production. Reliefs in production cuts have already been implemented, and we expect further relief in the coming months. This will bring the tanker market back to 2019 levels. The temporarily low market leads to higher scrap activity among shipowners with older tonnage.
Aframax – 12 month TC: $19,750 pr. day
Aframax – Average spot market rate: $8,597 pr. day
The rates have had a relapse, especially in the Capesize segment. The main reason is lower iron ore exports from Australia due to logistic problems, mainly port maintenance. Nevertheless, the expectations are that export volumes from Australia will rise to good levels during the last months of the year. Chinese steel demand is also holding up well, and is expected to remain strong going forward, this will affect the demand for iron ore, and keep it at a solid level. We expect the dry cargo market to remain at a relatively good level for the rest of the year.
Capesize 12 month TC: $17,125
Kamsarmax 12 month TC: $13,450
Minerva Maya (105,709 dwt) built in 2002 was sold for $12.2m earlier this week.
No transactions of interest.