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Earnings in the Aframax segment have fallen somewhat this week, largely due to reduced demand in the US Gulf. The VLCC segment, has been tighter even with a lack of Chinese demand, where rates have increased by 16% compared to the previous week. We follow the COVID-19 situation continuously, but much indicates that shipowners will gain more control in the market towards the end of the month.

Aframax – 12 month TC: $21,500
Aframax – Average spot market rate: $22,555

Dry Bulk:

In dry cargo, the Capesize segment still struggles greatly, with earnings well below operating costs. However, Panamax looks much better, led by increasing traffic in the Atlantic and Black Sea, where rates are just above operational costs. The dry cargo market will, of course, get a proper rebound when China’s import/export returns to normal levels.

Capesize 12 month TC: $13,875
Panamax 12 month TC: $10,750



Interestingly, the rates in the VLCC segment are back at over $ 30,000 a day, but optimism has not reached the secondary market ever since the COVID-19 outbreak. A VLCC built in 2004 (319,247 dwt, Hyundai Samho) was sold for $31.5m. This transaction is in line with expectations. An interesting transaction is the sale of a 2003 built Aframax (115,482 dwt, Sanoyas) for a total face value of $16.5m. It is rumored that the ship was purchased for $12.5m in Q3-Q4 2018, which will result in very good profits for the owners. This sale went through at the same time as an Aframax 107,000 dwt 2005 built changed hands for $15.5m. It should be remembered that this ship is going into 15 years of classification this summer, which is often a costly affair.


In the Kamsarmax segment, a 2009 built (81,383 dwt, Universal SB Maizuru) was sold for a price of around $13.5m, which is also in line with the market.