Find out how the VLCC tanker market has started 2014… Podcast reportBy james tweed • Jan 11th, 2014 • Category: Tankers
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This podcast comes from Coracle – myCoracle.com
Thanks for downloading the VLCC Tanker Market report podcast from myCoracle.com and Braemar Seascope for January 10th 2014.
Please note that all Worldscale rates in this podcast are based on the 2013 scale, unless otherwise stated.
It was business as usual this week after the holiday season closed offices in parts of the world. Market levels of 280 at 65 just three weeks ago seemed very distant, after a US oil major fixed AG/East 270 at 47. This set a new tone for the market, after which a South Korean charterer quoted a cargo off 17-19 January for Ras Tanura to Onsan that received 11 offers and set a new low of 40.25. It remains to be seen when and if this level will be breached. It appears that with 10 days until the Saudi stem dates for February, the volume of cargoes still expected for January seems lower than those experienced in the last three months. While the fixture count for the 2nd decade has doubled over the last week, over the last few days charterers have been drip feeding cargoes into the market and taking their pick of the ships on offer. Fewer AG-West fixtures were seen, in keeping with the fewer volumes heading East.
While the clock is ticking, during the second half of the week the charterers have applied further pressure and some major cracks are appearing in the Owners’ defences of trying to sustain a $30,000/day earning level. AG-East now equates to about $20,000/day on a round voyage, almost halving the earnings seen before Christmas.
Activity in West Africa seems to be on the increase, with a Chinese charterer taking three VLCCs for first decade February loading early in the week, the most prompt of which was done 260 at 53. Two cargoes were being worked by Indian charterers this week. IOC was first to start on the February programme out of West Africa and came to the market for the 2nd February. With the eastern markets beginning to soften, charterers received a healthy response for their enquiry and ended up fixing an Atlantic ship at $4.175 million.
The 30 day availability index shows 89 VLCCs arriving at Fujairah, of which three are over 15 years old compared to 86 last week. Charterers continue to drip feed cargoes into the market with an expected 25-30 cargoes to follow for Jan and an availability or 40 vessels up to the 28th January and so leaving a excess of 15 vessels rolling into February.
The bunker price is $614/tonne.
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