Tanker volumes in the Red Sea drop further following fresh attacks.
Average crude tanker volumes in the Red Sea dropped again last week as new attacks on vessels drove volumes to around 60% below their pre-conflict levels. The resulting reduction in vessel supply contributes to positive owner sentiment.
Suezmax rates held steady last week after easing slightly the week prior. Vessel supply was further restricted as tanker volumes in the Red Sea fell reach new conflict lows last week; however, while sentiment was generally positive, longer tonnage lists and weak enquiry in the East put top-down pressure rates, leading to stable rates overall. The weakness in the East comes as China faces a struggling housing and stock market, a theme to watch in the coming weeks. Overall, Suezmax owners feel optimistic as supply tightness overcomes demand challenges.
“Rates generally stable as tight supply conditions offset somewhat softer demand.”
Aframax markets faced a general softening as relative stability in the Mediterranean/Black Sea was not shared by the UK Continent/Baltic market, which softened under weaker activity levels.
VLCC rates were stable as a series of off-market-fixing lifted owner sentiment. Activity was mostly kept off-market last week, despite rates bottoming, and, while the strength of future demand remains uncertain, owners are generally positive.
Aframax ECO, 12 months TC
Aframax, Average spot
Suezmax ECO, 12 months TC
Suezmax, Average spot
Source: Clarksons Research
Capesize rates moved higher while Panamax softened.
Capesize markets had a volatile week, with initial weakness across both basins driven by weak demand and long tonnage lists. However, rates strengthened towards the end of the week, particularly in the North Atlantic, as demand rebounded. Overall, the fleet weighted average earnings ticked up slightly.
“Mixed conditions across vessel segments with a possible floor in the market.”
Panamax rates softened amid weaker demand. Tonnage lists in the Atlantic grew, partly due to ballasting to the region following a period of stronger demand. However, demand also dropped at the same time, putting downside pressure on rates. In the Pacific, activity levels improved; however, demand did not quite live up to the expectations for a pre-Golden Week rush.
Handy rates ended the week mostly stable, with consistent demand in the Indian Ocean providing support. Elsewhere, activities in the Atlantic started the week strong but tapered off towards the end.
Capesize, 12 months TC
Kamsarmax, 12 months TC
Source: Clarksons Research
Another strong week in the PCTC market behind the continued increase in Red Sea avoidance and market demand.
As with other shipping segments, the ongoing avoidance of the Red Sea continues to add car miles to the industry and support a robust rate environment.
“The market awaits the upcoming annual reporting season for insights.”
Last week, the market learned of another Wallenius Wilhelmsen multi-year contract, this time with a leading global construction and mining equipment manufacturer, and a leading automotive distributor in the Americas. The contract is valued at approx. USD 1 billion. The market is now anticipating earnings season from the larger players, commencing with Hoegh Autoliners on 08.02.2024 and will bring valuable market insights, including on the demand outlook, the orderbook/supply conditions, and the ongoing conflict in the Red Sea.
5000 CEU – 12 months TC
6500 CEU – 12 months TC
Source: Clarksons Research
Type | Tons | + /- | ||
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Supramax | ||||
Handysize |
Type | Resale | 5y | 10y | |
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Handysize |
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