About 105 VLCC fixtures concluded from Gulf

VLCC

The supply and demand equation for December has now been played out, with about 105 VLCC fixtures having been concluded from the Gulf.

The tonnage supply was more than adequate, so rates eased for all destinations.

Voyages from the Gulf to the West dropped below WS200 while voyages to South Korea and Japan dropped to WS290. This, however, still reflects a timecharter equivalent exceeding $200,000 a day.

Now that the December cargoes have all been fixed, January liftings are being concluded with some enthusiasm more than 20 cargoes are already covered for loading in the first ten days of 2005.

Fewer cargoes have been quoted from West Africa, so vessels have been ballasting back to the Gulf from the Atlantic basin. This, of course, increases the number of vessels available in the Gulf region.

Rates should fall quite considerably for liftings further into January.

West Africa to China rates have dropped below WS200, while West Africa to India has been fixed at a lump sum of $6.5 million (Dh23.88 million).

Suezmax

The lack of enquiry from West Africa in the VLCC sector has also spilled over into the Suezmax size of vessel.

At the beginning of the week, Brazilian charterers managed to conclude a fixture at Worldscale 325. Because of a lack of cargoes, by the end of the week they negotiated the rate for a second vessel down to WS 262.

Rates from West Africa to the US Gulf peaked at about WS360 last week, but will probably ease back to about the WS250 level next week.

A number of fixtures have been reported from the Gulf with rates to China having slipped to WS 300, and voyages from the Gulf region to India having dropped to WS290. The market is likely to ease back even further next week.

Aframax

A lack of enquiry in the Mediterranean saw rates pushed back to WS180 in the early part of the week. Things began to rally as more and more cargoes were quoted.

The week closed with rates of WS275 being offered for cross-Med voyages, while Black Sea cargoes were attracting offers in excess of WS300.

There was also a lack of enquiry for Aframax tonnage in the Gulf and Indonesia, but the rates have not been badly affected.

The 80,000 tonne cargoes are being fixed at WS 390 from the Gulf WS390 from Indonesia to the Far East.

Voyages from Indonesia to Australia are still attracting rates in excess of WS 400.

The same picture has not been seen in North West Europe where rates dropped sharply down to WS135 in the early part of the week.

Conditions improved somewhat, and the market finished the week at about WS150. Ice class vessels attracted a premium for loading in the Baltic, where rates in excess of WS300 were paid.

The steadiest area was the Caribbeans, which usually lives up to its reputation for volatility.

The rate for a normal 70,000 tonne cargo Caribbeans to the US fell a little to end the week at about WS350.

Andrew Lansdale is a shipbroker and marine consultant with more than 40 years' experience in both the tanker and dry cargo markets. He has worked in London, Tokyo, Singapore, Hong Kong and Bangkok.