The Suezmax market had an active week, notably in the US, as rates on the US Gulf to UK Continent route climbed week-on-week. The Mediterranean/Black Sea market also strengthened, with rates on the route increasing somewhat. Despite limited activity in the East, rates rose due to a positive outlook from owners influenced by Western trends. Aframax rates on the cross-UK Continent route strengthened compared to last week, driven by strong demand and a scarcity of available tonnage in the region. Towards the week’s end, rates across the Atlantic saw significant growth, with the US Gulf to UK Continent route rates rising week-over-week, prompting some owners to consider shifting their vessels westward. In the Mediterranean and Black Sea, market conditions firmed as owners exerted upward pressure on rates. For VLCC’s there is a substantial tonnage rollover to November, but owner sentiment is improving. Strong cargo demand from the Middle East Gulf early in the week and demand from the West later on have bolstered confidence. The Suezmax and Aframax markets in the region are robust, further supporting this sentiment. Anticipations are for rates to strengthen in the short term.
Aframax ECO, 12 months TC
Aframax, Average spot
Suezmax ECO, 12 months TC
Suezmax, Average spot
Source: Clarksons Research
The Capesize market saw a strong start to the week due to post-Golden Week demand, but sentiment weakened as the week progressed, and fresh cargo became scarce. Nevertheless, fleet-weighted Capesize spot earnings increased by 11% week-on-week to reach $26,222/day, the highest level since May 2022.
In the Atlantic, rates dipped on Panamax later in the week following a tonnage clearance on Wednesday, and charterers capitalized on negative sentiment in the paper market. In the Pacific, the week began with robust Chinese activity, and although it slowed down, limited available tonnage kept rates supported. In terms of Handysize the US Gulf and US East Coast routes on the Atlantic strengthened this week due to robust demand, while a shortage of prompt Supramaxes supported the Continent. The Pacific market, particularly the North Pacific, remained quiet, and Indonesian coal demand stayed subdued due to ongoing technical issues.
Capesize, 12 months TC
Kamsarmax, 12 months TC
Source: Clarksons Research
Last week Cosco Shippings Car Carrier division announced that they have established a new route out of China to Thailand and the Persian Gulf region with a monthly service. The new route will support the increased demand for China-made automobiles. Statistics show that during the first five months of 2023, the import of Chinese-manufactured cars in Thailand increased by 140%. This underpins the growing demand for car carriers out of China to the rest of the World. These new routes and higher demand keep increasing rates which was confirmed by Höegh Autoliners the previous week in their trading update. A new report from Fearnleys also confirms that rates are increasing as 1-year TC-rates for both midsized and large PCTCs have gone up by another USD 5,000/day. This has over time added to the order book of PCTCs and most of these new ships will according to TradeWinds be built to run on alternative fuels which was the subject of this week’s Green Seas podcast.
5000 CEU – 12 months TC
6500 CEU – 12 months TC
Source: Clarksons Research
Type | Tons | Week 41 | Week 40 | + /- |
---|---|---|---|---|
VLCC | 300t. | $ 50.500 | $ 52.750 | -4 % |
Suemax | 160t. | $ 42.750 | $ 42.750 | 0 % |
Aframax | 115t. | $ 50.500 | $ 50.500 | 0 % |
MR | 50t. | $ 28.500 | $ 28.500 | 0 % |
Type | Resale | 5y | 10y | |
---|---|---|---|---|
VLCC | 125 | 98.0 | 74.0 | |
Suemax | 93 | 76.0 | 61.0 | |
Aframax | 82.5 | 70.0 | 55.0 | |
MR | 51 | 43.5 | 33.0 |
Type | Tons | Week 41 | Week 40 | + /- |
---|---|---|---|---|
Capesize | 180t. | $ 16.500 | $ 16.500 | 0 % |
Panamax | 82t. | $ 13.800 | $ 13.900 | -1 % |
Supramax | 58t. | $ 11.500 | $ 11.750 | -2 % |
Handysize | 38t. | $ 12.000 | $ 11.750 | 2 % |
Type | Resale | 5y | 10y | |
---|---|---|---|---|
Capesize | 63.5 | 48.5 | 29.5 | |
Panamax | 37.5 | 32.0 | 22.8 | |
Supramax | 35.5 | 29.0 | 20.0 | |
Handysize | 32.0 | 25.0 | 16.5 |
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