Suezmax Tankers Bullish
Global fixture activity for suezmax crude tankers rose in the first quarter by 5% year on year, with most of the activity coming out of West Africa.
Suezmax fixtures out of the Caribbean rose by 48%, most of which headed to the US Gulf and East coast Panama.
During the first quarter 2015, there was a 45% rise in suezmax fixtures from the Middle East Gulf (MEG) to West Coast India, compared to the same period last year, according to new research from New York-based marine transportation consultancy McQuilling Services.
India is easing its dependence on traditional crude markets, much as China is doing. McQuilling recorded two fixtures from south Brazil to West Coast India during the period.
Fixtures loading in the Caribbean also increased by 48% during the same period. Most of these volumes headed to the US Gulf and east coast Panama, the consultancy said in a report today.
There was also a 43% increase in fixtures out of the East Mediterranean during the first quarter this year, compared with the same period last year.
Meanwhile, dirty tanker freight rates generally declined in March from the previous month, dropping 3% on average, said OPEC in its latest monthly report issued this week.
This fall mainly affected the VLCC and Aframax class in March, while Suezmax closed the month 5% higher than the previous month. VLCC spot freight rates on all reported routes were down in March from a month earlier on the back of lower tonnage demand from Asia with the approach of the refinery maintenance season.
Clean tanker spot freight rates showed improved sentiment on all reported routes without exception. Product tankers of different sizes reported higher freight rates in March on the back of strong tonnage demand, often reporting low availability. On average, clean tanker spot freight rates were up by 16% from the month before.
