Report
Tankers
VLCC
A couple of market quotes first thing this morning will breathe a bit of life into what has been a quiet MEG VLCC market. However, given the lack of other activity in the area, there remains a likely continued short-term softening ahead on a MEG/China run as charterers will try to push lower in to the WS 50’s. TD3 now WS 58 to test. However, as is increasingly the case, our market is often driven by other sizes - notably Aframaxes in the USG. These a fair bit busier overnight, 80 x WS 172.5 paid which is up 10 points and a number of cargoes still outstanding, so further upward pressure. Therefore, we are expecting a kick up on VLs here, certainly after 10 odd VLCCs reported ex Americas yesterday alone (and these are the ones we know of). USG/China now paying USD 8.6m and a healthy demurrage of USD 75k will give owners heart. West steady, busy and upside ahead.
Suezmax
The interconnected nature of the Atlantic market continues to maintain relatively tight trough/peak spreads when compared to pre-Ukraine war. The West African Suezmax market saw a Dalia/Sarroch cargo trade WS 90, which probably freights a TD20 run at WS 95 today and with USG/transatlantic Aframax's creeping up to 70kt x WS 172.5 overnight there is an expectation that the handbrake will immanently be applied to further falls.
In the East, MEG/India cargoes have dominated the week interspersed with the occasional fuel oil stem. We are freighting MEG/USG USD 5-5.1m whilst MEG/East probably has a floor at WS 105-110 basis NHC. The lure of the Atlantic market might drag BOT/UKCM down to mid/high WS 50's via Cape.
Aframax
North Sea
Activity has been covering the last of the April/very early May stems with rates moving sideways. First 5 days in May are not overly populated with stems, so with some tonnage coming back into the window we could see some downward pressure on the rates. US Markets look to have bottomed and an increase in activity has seen rates bounce back a touch with a firmer sentiment, so ballasting out of North Sea still remains a very viable option for tonnage.
Mediterranean
Mediterranean Aframaxes have seen consistent activity for the week with both replacement deals and cargoes working, but the market has held in a steady trend with sufficient tonnage there to fix. North Africa stems have pushed in to May mid first decade dates and onwards with activity expected to remain fruitful. Worth noting CPC blend is due some maintenance and forecasting a decrease in volume there although that might have an effect Suezmaxes more so. (same as above)
Rates
Dry Bulk
Capesize
On the C5 front, we see healthy volumes from miners, operators, and tenders alike for end May dates. A number of operators were seen seeking forward tonnage for June dates as well. We also see a steady inflow of volumes on East Australia coal and other Pacific business with end May to early June and mid to end May dates, respectively. Volumes out of South Africa have ticked up as well with operators seeking tonnage for end May to early June dates. On C3 ex Brazil to China, we see a high level of interest for June dates amongst operators. Far East spot tonnage is tightening while ballasting tonnage weighs heavily on first half of June dates with some able to make end May dates. On C5, we see an upward trend thus far with fixtures concluding at mid to high USD 11 pmt levels by mid-week. On C3, we see fixtures concluding in the mid USD 26 to USD 27 pmt levels for late May and June dates .
Panamax
This week in the Panamax market, despite previous expectations of a downward trend, prices continued to rise, particularly in the Pacific compared to the Atlantic. This rise occurred despite a high concentration of fleet in the East of Suez and a seasonal decline in coal demand. Market movements remain aligned with seasonal expectations, suggesting a possible drop next month followed by a significant rise in Q3. The market started strong this week, bolstered by positive trading sentiments and gains across most routes, though the trans-Atlantic route experienced slower activity. Sentiment remains cautiously optimistic.
Supramax
The market pushed up in most Far Eastern areas but remarkably in the India Ocean and South Asia, where significant cargo volume increased, with rates flying sky-high. Indonesia-China rates surged above USD 20,000, a testament to the market's robustness. Owners confidently sought a premium on the last done, further solidifying the market's strength. The period market also displayed strong numbers, with the Ultramax mv Theresa Pride 62’ DWT open Gresik rumored to fix 7/9 months at USD 20,000. We noticed a need for fresh inquiry in the Mediterranean region - given flat development, and ships kept trading for about USD 15,000 in TA.Rates
Gas
Chartering
EAST
Big gains on freight in both main basins supported by a widening arb and an increasingly congested Panama Canal where last SB slot now is reported sold at 1.7 mill. Most of the remaining vessels still available on May dates are eyeing the West market – while those still able to consider staying in the East will do so only at a price. So far, we are counting 21 spot fixtures for May, all evenly spread out throughout the month. The fixing window is now shifting into June as we are awaiting Adnoc acceptances at the end of this week and freight looks set to remain strong leading up to this.WEST
The Western market has been quite active this week with several spot fixtures done, and in total we count approximately 20 spot fixtures for June dates out of the USG/USEC. The last May ship has now been fixed out and first decade June is seemingly soon finished with only 1 vessel left open. Fixing focus has shifted towards 2H June and we now find western freight rates around 140 H/C. .LPG Rates
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All rates published in this report do not necessarily reflect actual transactions occurring in the market. Certain estimates may be based on prevailing market conditions. In some circumstances, rates for certain vessel types are based on theoretical assumptions of premium or discount for particular vessel versus other vessel types.' Disclaimer