Asia VLCC Rates Could Nudge Higher on Activity

Posted by Joseph Keefe
Friday, July 25, 2014

Rates for very large crude carriers (VLCCs) on key Asian freight routes could hold steady or gain next week as charterers seek to complete their vessel chartering programme for the first 20 days of August, brokers said on Friday.

The pause would come after charter rates from the Middle East to Asia jumped this week to their highest levels since February 27 after falling on Monday as owners resisted charterers' attempts to push prices lower, brokers said.

"It's been quite busy this week," fuelled by charterers rushing to charter ships before next week's Eid holiday, said Kevin Sy, freight derivatives broker at Singapore's Marex Spectron.

"I expect them to stay around the current level and might even move up a bit," Sy said on Friday, although he questioned if the gains are sustainable.

"There are a lot of cargoes in the market," a Singapore based VLCC broker said on Friday and thought rates could rise a further two or three points on the Worldscale measure.

There have been 20 VLCC cargoes fixed from the Middle East to Asia in the last week, according to Reuters shipping data.

Charterers have yet to start fixing cargoes for the last 10 days of August, the broker said. Between 120-125 cargoes are forecast to be fixed for the whole of August, the broker said.

Rates for VLCC cargoes from West Africa to Asia recouped the losses from the previous week as tight tonnage matched the limited cargo demand.

"We're not seeing a lot of West Africa cargoes in the market, although we are expecting charterers to come in," the broker said.

Rates for a VLCC voyage on the benchmark route from the Middle East to Japan rose to W52.50 on the Worldscale measure on Thursday from W46 last week.

Rates for West Africa to China climbed to W52.50 on Thursday against W47.75 a week earlier.

"The general sentiment is firm for the VLCCs for the time being," Norwegian ship broker Fearnley said in a note on Thursday.

In other trades, rates for 80,000-tonne aframax tankers from Southeast Asia to East Coast Australia climbed to W109.75 on Thursday from W96.25 a week earlier buoyed by general positive sentiment and an increase in cargoes.

Clean tanker rates from Singapore to Japan edged up to W108.25 on Thursday, against W107.50 last week amid tighter vessel supply, a Singapore clean tanker broker said on Friday.


By Keith Wallis

 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

ClassNK to Perform AWO Responsible Carrier Audits

The American Waterways Operators (AWO) and ClassNK have signed an agreement under which ClassNK will be authorized to conduct audits of AWO's Responsible Carrier Program,

Radio Holland Wins Contracts for Canadian Coast Guard Vessels

Radio Holland Canada has won two major contracts to support the Canadian Coast Guard. Public Works and Government Services Canada, which is responsible for government procurement,

Young Brothers Orders Four New Tugs from Conrad

Young Brothers, Limited, Hawai‘i’s largest inter-island cargo service provider, and Conrad Shipyard, signed a contract to build four new tugs, a nearly $80 million

Tanker Trends

LPG Carrier Makes First Commercial Transit through Expanded Panama Canal

On June 27, the expanded Panama Canal opened for commercial transit, and Lycaste Peace, a very large liquefied petroleum gas (LPG) carrier operated by NYK, was

Essberger Fleet Moves to Marlink’s Sealink VSAT Service

The Hamburg headquartered John T. Essberger (JTE) Group will migrate the primary communication systems of its entire fleet to Sealink, Marlink’s global maritime broadband VSAT service.

China's Robust Crude Oil Imports Mask Changing Fuel Dynamics

China is a bigger concern for crude oil and products markets than the current worries about the British vote to leave the European Union.   While the news media

Finance

Baltic Index Rises on Greater Vessel Demand

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose on Wednesday, boosted by demand that is driving rates up across vessel segments.

CMA CGM Crosses 91.05% Ownership Threshold of NOL

CMA CGM S.A has crossed the compulsory acquisition ownership threshold in Neptune Orient Lines Limited (NOL).    Following its all-cash voluntary conditional

Baltic Index Rises for Fifth Consecutive Session

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Tuesday for a fifth straight session on stronger demand across all vessel segments.

Energy

Lloyd's Register Extends Drilling Rig Integrity Support

Exploration begins by BHP Billiton using the Deepwater Invictus rig and supported by Lloyd’s Register’s rig integrity team. Lloyd’s Register (LR) announced it

Another Fugro Vessels Joins Largest SEEP-Hunting Survey

Fugro has deployed multi-purpose offshore survey vessel Fugro Gauss to join the Fugro Brasilis offshore Mexico, to help complete the world’s largest seep-hunting

JIP Validates DNV GL's Helica Software

A joint industry project run by DNV GL has replicated stresses measured in an umbilical subjected to tension and bending in full-scale tests, further validating

News

China Says Arbitration Court Has No Jurisdiction in S.China Sea Case

China's Foreign Ministry said on Wednesday an arbitration court hearing the dispute between China and the Philippines over the South China Sea has no jurisdiction

Hybrid RoPax Ferry Delivered to Royal TESO

Hybrid RoPax ferry Texelstroom has been delivered to Koninklijke N.V. Texels Eigen Stoomboot Onderneming (Royal TESO).   This latest generation symmetrical ferry is powered by efficient,

ClassNK to Perform AWO Responsible Carrier Audits

The American Waterways Operators (AWO) and ClassNK have signed an agreement under which ClassNK will be authorized to conduct audits of AWO's Responsible Carrier Program,

Logistics

Baltic Index Rises on Greater Vessel Demand

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose on Wednesday, boosted by demand that is driving rates up across vessel segments.

Six-Month High for Service Reliability

Ocean carriers achieved a six-month high for liner service reliability in May, according to Carrier Performance Insight, the online schedule reliability tool provided by Drewry Supply Chain Advisors.

CMA CGM Crosses 91.05% Ownership Threshold of NOL

CMA CGM S.A has crossed the compulsory acquisition ownership threshold in Neptune Orient Lines Limited (NOL).    Following its all-cash voluntary conditional

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Pipelines Port Authority Salvage Ship Simulators Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.4075 sec (2 req/sec)