The Aframax segment rates declined further. The other two vessel classes had a somewhat smaller decline in earnings. Earnings in the market are challenging for the previously mentioned reasons (stock construction earlier this year), as well as the oil from Libya has the effect of affecting the market as hoped. There is still some positive news from the market. The steel price has taken a marked leap in recent weeks, and in combination with low rates, it will act as a possible catalyst for a scrap metal party and an even stronger market in the long run.
Aframax – 12 month TC: $17,500 pr. day
Aframax – Average spot market rate: $5,635 pr. day
The Capesize segment also declined last week. This was as expected, as it is public holidays in China thus the reduction in activity. The Panamax segment also had the same week as the week before, with some strengthening of the rates which is a positive signal considering that these are also affected by Chinese holidays.
Capesize 12 month TC: $19,000
Kamsarmax 12 month TC: $12,875
A vessel of interest was sold last week. An Aframax (109,570 dwt, built in 2005, Dalian New Yard) was sold for just under $13m. The ship will also have a “basic drydock” in the near future.
No transactions of interest.