Spot rates in the Aframax segment rose 12% w-o-w. The rates in the other segments are relatively stable. 12 month T/C contracts stay on site. But, in the tanker market, there is a daily growing optimism. The observant investor has probably registered that some tanker shares on the stock exchange have risen by 20-30% in the last two weeks. This is a sign that the recovery we predicted is starting to take shape. At the same time, we see that vessel values have the benefit of moving, yet. The sophisticated investor will seize the opportunity to place himself directly in the market as opposed to the stock exchange instruments as when one has the opportunity to expose yourself in the market at “yesterday’s” prices. However, the upward turn for ship values is just around the corner.
Aframax – 12 month TC: $14,500 pr. day
Aframax – Average spot market rate: $6,640 pr. day
The dry cargo market has some very interesting developments to report. The New Year celebrations and associated holidays held in China, typically send the dry cargo market into a low season. This year, no exceptions have been made for Capesize vessels, which are experiencing a 29% decline in w-o-w rates. However, in Kamsarmax, and especially the Panamax and Handysize segments, the rise in rates continues. This is due to strong demand for grain in the Atlantic region and strong demand for coal in the Pacific region.
Capesize 12 month TC: $18,125
Kamsarmax 12 month TC: $15,400
No transactions of interest in week 6.
The activity in the secondary market shows no signs of fading. During the last week, a total of 15 transactions took place for 15 vessels, 13 of which are in the Supramax segment. Ship values for 15-year-old Capesize and Panamax ships have increased by 16% and 12% respectively in the last 3 months. We expect to see this trend continue in the future.