A buoyant week in the VLCC marketBy james tweed • Dec 16th, 2013 • Category: Tankers
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Thanks for downloading the VLCC Tanker Market report podcast from myCoracle.com and Braemar Seascope for December 13th 2013.
This will be our last market report podcast until the New Year so from all of us at Coracle we’d like to wish you a very Happy Christmas and successful 2014.
Now the VLCC market report and the sector has remained buoyant this week despite charterers’ best efforts to try to chip away at the rates. The vessels which have been giving away a point here or there always have a reason, be it that they’re ex-dry dock, lacking approvals or over-aged. The younger, fully approved champions of the fleet have maintained their freight ideas, and rightly so. December laycans are mostly finished for the moment, with a total number of cargoes covered now up to about 135: over the last three months the totals have all exceeded 140 stems, proving that the consistently higher volume of cargoes has been the sound foundations for this market. There is a feeling that there is a pre-Christmas rush in the pipeline, and that fixing earlier might be the best course of action, since what you might pay today could easily be eclipsed the closer we get to Christmas dates. Although there are a few January cargoes reported, looking in the Arabian Gulf, we do not expect dates to be confirmed until next week and those looking are either speculating or very sure of the dates they will get.
The West African market has been more subdued, however there is a lack of tonnage in the Atlantic area, which has meant that anyone with the misfortune to have a late-running ship is in danger of paying a very high rate. The prevailing rates are 260 at 60 for West Africa/East and 62.5 for the US Gulf, however with more action in the Arabian Gulf there is potential for the market to rise. There has been no fresh movement from the Indian Charterers this week.
The 30 day availability index shows 64 VLCC’s arriving at Fujariah of which three are over 15 years old compared to 55 last week.
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