Tanker market report for week ending Aug 9By james tweed • Aug 12th, 2013 • Category: Tankers
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Thanks for downloading the VLCC Tanker Market report podcast from Coracle and Braemar Seascope for August 9th 2013.
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This has been another difficult week for VLCC owners with vessels in the AG. The lack of cargoes being fixed in the open market has left independent owners wondering where their next employment will come from. Although there have been an average number of fixtures, many have been covered on COA tonnage, which does not allow any market improvement and since the market is at a low point there is little hope of improvement. While AG/East has remained steady and is trading at 265 at 33.5, for the longer voyage to the West the freight rates have been further eroded to sub 20 via Suez Canal. This coverage by COA tonnage means the market will be shackled to the bottom for the moment and the holidays in the Far East will do nothing to help the situation. Vessels in the East will be looking to ballast to West Africa for salvation, but the number of owners with the same idea will begin to erode this market as well.
Despite West Africa showing some improved volume because of the stronger Suezmax market giving charterers opportunities to co-freight, freight rates have not drastically improved. 260 at 40 was fixed for USG and 45 for UKC-Med discharge, while east levelled off at 35.5. The influx of eastern ballasters means it will be difficult for these levels to improve unless a huge amount of Suezmax stem co-freighting takes place, which is quite unlikely. Indian charterers got busier out of West Africa, with three cargoes being covered this week.
The 30 day availability index shows 74 VLCCs arriving at Fujairah, of which 5 are single hull, compared to 70 last month. So far for the month of August, we have counted a total of 93 fixtures, so if we have another 20 fixtures for the month, we have almost three times as many available ships, about 60, which can make end month cancelling dates.
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