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 Reporter July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Major Ivorian Cocoa Buyers Boycott Local Exporters Scheme

Major cocoa buyers are boycotting a scheme in Ivory Coast aimed at guaranteeing local firms a share of the lucrative export market, arguing that these players lack

DSM Dyneema Names President’s Successor

Gerard de Reuver has elected to step down as President of DSM Dyneema on August 1, 2015 after five years in the post, the company announced today. He will be succeeded by Golnar Motahari Pour,

Matson Pumps $30 Million into Alaska Operations

Ocean cargo shipper Matson, Inc. said it is moving quickly to fund improvements in its new Alaska operations following its May 29 acquisition of Horizon Lines' Alaska services.

Finance

India Delays 24 LNG Shiploads from Qatar

India has deferred taking deliveries of at least 20 shiploads of expensive liquefied natural gas (LNG) from its main supplier Qatar and wants a rate cut matching

Super Yachts Give Boost to NZ Economy

New Zealand Customs Minister Nicky Wagner says mid-winter marks the end of another successful yacht season, with many of the remaining international yachts departing at the end of last month.

Sembcorp Marine Posts 17% Fall in Q2

Low oil prices and muted sentiment in the industry continued to take a toll on Sembcorp Marine's second-quarter earnings.   The rigbuilder has announced that

Energy

India Delays 24 LNG Shiploads from Qatar

India has deferred taking deliveries of at least 20 shiploads of expensive liquefied natural gas (LNG) from its main supplier Qatar and wants a rate cut matching

USCG Investigates Oil Slick off California Coast

The U.S. Coast Guard was investigating a large oil sheen off the California coast west of Santa Barbara on Wednesday, a spokeswoman for the agency said.   The slick,

Mexico to Postpone Deep Water Auction

Mexico, which has started to open its nationalized oil industry to additional private investment, will postpone auctions for deep-water oil exploration and production

News

Victoria Celebrates Six Millionth Cruise Ship Passenger

Two tourists  -Victoria and Joseph Winthal - disembarking the Golden Princess Cruise Ship in Ogden Point have got an unexpected surprise.      They were selected

Cambodia: Anti-dredging Protests Heat Up in Koh Kong

The The Phnom Penh Post reported that activists have continued their campaign to drive out sand dredging companies from Koh Kong province’s Botum Sakor district,

Dry Bulk Shipping Outlook Improving

The dry bulk market looks set for a solid show, although conditions remain more than challenging, analysts with Macquarie said in a note, reports WSJ.   As the

Logistics

India Delays 24 LNG Shiploads from Qatar

India has deferred taking deliveries of at least 20 shiploads of expensive liquefied natural gas (LNG) from its main supplier Qatar and wants a rate cut matching

Dry Bulk Shipping Outlook Improving

The dry bulk market looks set for a solid show, although conditions remain more than challenging, analysts with Macquarie said in a note, reports WSJ.   As the

Sembcorp Marine Posts 17% Fall in Q2

Low oil prices and muted sentiment in the industry continued to take a toll on Sembcorp Marine's second-quarter earnings.   The rigbuilder has announced that

 
 
Maritime Standards Naval Architecture Pipelines Pod Propulsion Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar 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: 0.4991 sec (2 req/sec)