Interested in Tankers? Here’s the VLCC market for July 19By james tweed • Jul 19th, 2013 • Category: Tankers
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Thanks for downloading the VLCC Tanker Market report podcast from Coracle and Braemar Seascope for July 19th 2013.
Following the larger than average number of fixtures from the AG last month, charterers paused for thought as we approached the Saudi Arabian stem confirmation on Wednesday of this week. The lack of cargoes in the market this week spooked some owners into accepting less than last done levels. However, the AG has now stabilised at 270 at 40 for AG/East and 280 at 25 for AG/US Gulf via the Cape, with perhaps a few points discount for going via the Suez Canal. However, despite this pause there are plenty of cargoes to come and in fact this lull in fixing risks some cargo congestion; if charterers don’t start to cover their cargoes soon there could be a rush and freight rates will start to increase once again. Oil demand is still relatively strong and oil inventories remain low so that there is no reason there should be any short fall in cargoes this month. The tonnage list is once again populated by modern high quality vessels and a recent cargo loading at the beginning of the month for AG/Thailand attracted seven offers and fixed 265 at 40.5. If there are 30 more cargoes to fix the in the 1-10/August window this could make things interesting.
West Africa has been more subdued this week with Chinese charterers fixing domestic tonnage. Since the market has been untested the freight rates for West Africa/China have been assumed to have declined in line with the AG to about 260 at 40. West Africa/US Gulf was tested this week and a vessel was fixed but quickly failed at 260 at 42.5 due to a change of stem dates making the co-freight impossible. The fuel arbitrage has not been open of late from the Continent, and this has meant that VLCCs discharging in the area have been setting a course for West Africa as their next closest load area.
The 30 day availability index shows 52 VLCCs arriving at Fujairah, of which five are over 15 years old compared to 41 last week. July produced a total of 131 reported fixtures. The total number of fixtures reported from the AG for the month of August is only eight, which will leave another 30 to come for the first decade, As previously mentioned, there could be some congestion if charterers only start to work these dates next week.
The bunker price today is $599/tonne, down a dollar from last week.
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