Tanker report for week ending April 3By james tweed • Apr 6th, 2014 • Category: Tankers
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At the beginning of the week there was more hope for VLCC owners, as worldscale 39.75 was fixed for an AG short East cargo. However, even with continued steady volumes of fixing, rates never managed to progress further and with some ships failing their subjects and adding to oil companies’ pool of potential candidates, last done levels have been achievable all week. Older units are still taking a reduction where possible, with modern units pushing for 40. After the year low AG/West fixture last week, rates moved slightly but only up to 25.75 via the Suez Canal, with end-April laycans beginning to cover. So for the time being the market is stable but with a good flow of cargoes in the market, any slight slip up might leave a charterer tight and facing the frustrated owners who are striving to move this market back into the 40s.
West Africa has been busier this week, with up to five deals for the third decade being reported. Rates bottomed at 40 with an oil company relet ballasting from the US west coast and last done was 40.5 from an eastern ballaster – down another pointfrom this time last week.
Indian charterers entered the market mid-week with an end-April west coast India cargo and received five offers from both East and West basins, covering slightly under last done. We expect the Indian charterers to now start working on their May program.
Atlantic basin activity spread into the Caribbean market with higher volumes being seen, however more fixing and failing than previous weeks has left owners frustrated. The gradual slide in market levels continues with rates now established at $3.5m for Caribs/Singapore and $3.1m for a west coast India voyage.
The 30 day availability index shows 100 VLCCs arriving at Fujairah, of which nine are over 15 years compared to a similar amount to last week. We have now counted a total of 75 cargoes for April, 34 of which are off second decade with the final stems to cover. This leaves a total of about 40 cargoes left to cover since we expect a 120 fixture month. Another 20 ship overhang into third decade April is keeping rates in check for the time being.
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