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Here’s the Coracle tanker podcast for Nov 8. Also available in Mandarin

By • Nov 8th, 2013 • Category: Tankers

The Coracle tanker market podcast for Nov 8, 2013 in association with Braemar-Seascope

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Thanks for downloading the VLCC Tanker Market report podcast from and Braemar Seascope for November 8th 2013.

This has been another excellent week for VLCC owners, who have exerted their advantage and continued to build solidly over the week. The week started quietly as charterers had withdrawn from the market hoping a few quiet days might soften owners’ firmness; however this did not come to fruition. Despite the lack of cargoes earlier in the week, the owners were confident that November cargoes remained unaccounted for, so, they held their nerve, and for a change it was the charterers that cracked first. Those charterers which could take older vessels, saw the value in these units and while fully approved vessels were asking for 270 at 55, the older ones gave a discount, reaching as low as 50. Then suddenly a few charterers stepped into early December and the fireworks went off again. As the week drew to a close 274 at 57.5 is on subjects for AG/Korea and we expect to hear 60 done soon.

AG/West was fixed at some very reasonable freight rates as the market firmed. The last fixture for AG/US Gulf via the Cape was 280 at 32 for loading in early December. This kind of rate is unachievable now as things have definitely moved on to 35+ level. There is a whiff of over-excitement right now, and sometimes charterers can be their owner worst enemies! Right now they are quoting and working cargoes, when they will not have their stem dates confirmed for 10 days, however these are very positive signs for owners, who will take advantage of this panicky sentiment.

West Africa was another area where charterers have been very busy in the first decade, fixing five or six VLCC’s for that window. They attempted to quieten things down but the volume of business they had to conclude meant that they were quickly back into the market. Owners chartering representatives must be careful not to over-cook things, it is often said: ‘a bird in the hand is better than two in the bush’, and when trading West Africa/China the stakes are higher than any other area.

The Indian charterers started to make moves for December laycans with West Africa/Kochin fixed at $4.45 m off 5-6/December. As the week progressed a vessel ran late for Reliance forcing them to fix another for West Africa/Jamnagar at $4.4m, which most observers thought to be a very sharp rate for the charterers.

The combined strength of West Africa and the Arabian Gulf has meant that owners in the Caribbean have also wanted to take advantage of these higher numbers. The Brazilians fixed and failed a couple of ships during the week, for Brazil/China 270 at 47, which is in line with the increases towards the $5m level for Caribbean/Singapore. Charterers have been doing a commendable job trying to keep rates below the $5m level, but since the AG seems to be in all out panic mode, this sentiment can quickly be passed on. Charterers struggling to find friendly VLCC’s are now looking at Suezmaxes as an alternative route.

The 30 day availability index shows 46 vessels arriving at Fujairah of which four are over 15 years old compared to last week’s total of 63. We have counted a total of 131 cargoes fixed for the month, so there aren’t many left for November cancelling and we have already seen charterers enter the market for December cargoes. The list is very short of high quality tonnage for November, and it is this that has got charterers excited for the moment.
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