VLCC tanker report for June 27By james tweed • Jun 27th, 2013 • Category: Tankers
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Thanks for downloading the VLCC Tanker Market report podcast from Coracle and Braemar Seascope for June 28th 2013.
VLCC owners with ships in the AG did their utmost this week to try and keep rates where they were at the end of last week. Alas, for their efforts, the inactivity led to the inevitable loss of confidence and a slump in freight rates. Charterers are masters of disappearing from the market at the opportune moment and this week was just such a week. At the beginning of the week, owners of modern tonnage had held for 270 at 40+ for AG/East and charterers were forced to fix older vessels to get beneath the 40 level. However, as the week went on, the lack of cargoes started to get under owners’ skin and by Wednesday a couple of modern vessels had accepted 270 at 38 for AG/East. Then less was being now reported on subjects as S-Oil fixed two vessels at 274 at 34.5. The same has happened with AG/West, where charterers have spotted the weakness and worked away to secure cheaper freight. This sudden slump proves how well owners had done to keep the AG/East rates in the 40’s, but once the dam was
broken then 35 was quickly reached.
In West Africa, there have been lower volumes reported from Chinese charterers which again added to the loss of owner confidence. Last done for 260 West Africa/China stands at 36.5, but given the general lack of cargoes, it is probably slightly less. It was a quiet week from the Indian charterers from West Africa, with no cargoes being worked from their side. IOC have had a busy first and second decade, covering five stems from the region for July dates. We still expect them to have one more stem towards the end of July. BPCL and HPCL have already covered their ‘one a month’ requirement for July dates. IOC will be looking to take advantage of the softening sentiment seen this week on W Africa/China for their expected end month stem from the region.
The 30 day availability index shows 54 VLCCs arriving at Fujairah, of which 4 are over 15 years old, compared to 55 last week. We have slowly reached a total of 56 VLCC fixtures reported for the month of July thus far, which is the halfway point of last month’s total of 112.
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