We saw marginal improvement in both the Aframax and Suezmax segments last week, meanwhile the VLCC segment declined somewhat. It was a promising start to the week for the Aframax segment, but activity weakened somewhat throughout the week. This meant that rates did not go higher. We note that it is mainly the movements in the Mediterranean sea that have caused rates to strengthen, and it is reasonable to believe that this is due to the latest developments in Libya.
Aframax – 12 month TC: $16,750 pr. day
Aframax – Average spot market rate: $6,729 pr. day
The dry cargo market declined last week, with the Capesize segment mainly experiencing the largest decline. The latest news from the Dry Cargo Market is that China will most likely ban the import of more raw materials from Australia such as sugar, coal, timber, steel, lobster and red wine, among other things. This will lead to increased tensions between nations and could potentially be negative for the demand for dry cargo ships in the coming months. The only glimmer of light in such a scenario is that there are several providers of steel. These journeys will have a significantly longer travel distance than the current route from Australia to China, which will be positive for “tons of miles”.
Capesize 12 month TC: $15,750
Kamsarmax 12 month TC: $11,500
There were no ships of interest last week.