In the Middle East Gulf levels have continued to weaken with rates for 270,000 tonnes going to China down to WS 62.5/63 and Korean discharge has been covered at WS 60 by HOB while Chevtex midweek paid WS 66.5 for short east to Thailand. Thereafter Exxon are now reported have taken two ships (one ex dry dock) at WS 61.5, both for Singapore discharge. Going west, Valero are understood to have taken BW Lion for 280,000 tonnes to US Gulf at WS 32 cape/cape with option of Suez/Suez at WS 31.
In West Africa, rates for 260,000 tonnes have weakened further with WS 65 agreed for a run to China. CPC are understood to have been countering off 5-8 August for a West Africa to Taiwan trip at WS 57.5 against offers down to low WS 70S. Indian charterers have also been active with west coast India discharge paying $5.45 million, representing a drop of around $300,000 compared to a week ago.
In the North Sea a fuel oil run from Rotterdam to Singapore is now reported to have been concluded at $6.125 million while Hound Point to Korea was agreed at about $7.9 million although we now understand this may have failed on subjects. Caribbean to Singapore has held steady at around $ 7.3 million.
In West Africa, rates to Europe for 130,000 tonnes have softened. The start of the week saw ENI paying WS 96.25 for Italy discharge – thereafter Petrogal covered at WS 92.5 and Petroineos at WS 89.5. There is now a report of WS 87.5 being agreed for Europe discharge while an early replacement cargo is said to have achieved WS 92.5.
In the Black Sea, it has been a slow week with last done here fixed a week ago at WS 117.5 on 140,000 tonnes, though brokers feel with the sluggish market and corresponding build-up of tonnage that rates will ease, following a similar course to West Africa.
In the Mediterranean and Black Sea rates have weakened considerably, with the market shedding around 30 points to WS 110/112.5 level and with outstanding prompt tonnage needing to be fixed. Libya cargoes still tend to pay a premium of about 15 points.
In the Baltic, rates have dropped around 20 points but this is not unexpected with a light July loading program because of Primorsk maintenance from 7 – 12 July and similarly at Ust Luga for a week from 13 July. Consequently rates which started the week at close to WS 120 are now at WS 100 level and we understand tonnage is now working Baltic business at below WS 100 but nothing concluded yet.
In the North Sea, the market for 80,000 tonne cargoes going to near Continent has followed the Baltic market down and after WS 125 was agreed, the last seen here is Valero taking Minerva tonnage off 9 July at WS 107.5.
In the Caribbean, the market for 70,000 tonnes going up coast has bowed to the build-up of tonnage with rates easing from high WS160s at the start of the week down to WS 152.5. Charterers saw multiple offers on their cargoes this week as owners looked to get fixed prior to the long weekend in USA.
A strong panamax market in the Caribbean with levels there of 50,000 tonnes up coast around WS 162.5/165, is still enticing tonnage to play the local market rather than commit to the usual ballast to the Continent. Subsequently rates for 55,000 tonnes to the US Gulf have continued to firm to around WS 150.
With a healthy tonnage list, charterers have been able to squeeze rates down. For owners plying the Continent to USAC trade, levels have eased 10 points from the start of the week to sit now at WS 170, with owners’ cause not being helped by the weaker backhaul market from the US Gulf/UK-Cont where rates have declined steadily, also losing around 10 points to barely WS 100 level for 38,000 tonnes. The weaker backhaul market has, lead to more tonnage ballasting back to the Continent.
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