Market Report Week 27-28
The spot rate for Aframax continued its correction last week. The latest movement in the oil market is looking very positive for the sector, but it is common that the activity declines at this time of the year. On the other side of the summer, we expect to see the effect of the measures taken by the OPEC, parallel with the effects of significantly lower inventory.
Price 12 months lease: $14.500 per day
The average rate in the spot market: $9.700 per day
The Baltic Dry index rose 17,1% last week and closed on 1.622 points. The rates for Panamax rose with 0,8% to $10.821. It was especially the Capesize segment that took the index in the right direction, with an increase of 34%. Currently, in the BDI is in 1.586 points, after the rates for Capesize fell back at the start of the week. The rates for Panamax has gone in the other direction and was in $12.000 by yesterdays ending. The third quarter of the year appears to be quite volatile with the politic conflicts between China and the USA. Based on the movements in the cargo market, it seems that the consensus between the parties is to find a solution. We are expecting to see a great upswing in the cargo rates as the year approaches the end.Capesize 12 months lease: $23.500 per day
Capesize 12 months lease: $23.500 per day
Panamax 12 months lease: $13.500 per day
The second-hand market clearly shows signs of holiday mode. Last week, it was only a handful of ships that changed owners, something that’s normal this time of year. We don’t expect any improvement in the activity before September. This does not mean that there won’t be any good trades this summer. It is normally a good time to do business, with less potential buyers to compete with.