Braemar Seascope Weekly Chartering Report
C r u d e C h a r t e r i n g
Unfortunately for shipowners, the brief period of a shortened available tonnage list is over and now we are back to the oldsituation of oversupply. Even when the situation was a tighter, owners were only able to push rates slightly above 270kt xws35.0 east and sub
ws20.0 to the West via cape. However, at the time of writing, the downward pressure is mounting. Far eastern charterers looking for mid
April VLCCs collected nine offers today and we can expect to see rates once again slipdown to 270kt x ws33.0 level or lower. The Easter break has done nothing to disrupt steady fixing and we are seeing AG/East cargoes traded off mid
month, whilst most western players are now casting their eyes towards end month fixing dates.Charterers may have felt slightly uncomfortable off the earlier position, but we think they are now able to relax once more inthe AG loading area.
This week was much more subdued from West Africa. Unipec fixed a Nova vessel Diamond Jasmine for W Africa/China off end April/early May dates. The rate at 260kt x ws34.5 is slightly lower than last done, which is a fair deal comparing to whatthe AG has been paying this week. There are now other Chinese charterers looking to benefit from this as CNOOC havebeen sniffing around for tonnage off similar dates. In the Caribbean, the Caribs/WC India market went down a little asReliance took two ships at US$3.0m in the last decade of April. The Indian charterers have been quiet with the Holi festivalso we can expect renewed action from the area on the other side of the weekend.
The 30 day availability index shows 56 VLCCs arriving at Fujairah, of which eight are over 15 years old, compared to 62 lastweek. So far for the month of April we have seen a total of 60 fixtures, roughly 50% the April fixtures if the figures are similar to March's total of 107 reported.
Owners will need to continue to work hard to keep rates even where they are today.The bunker price today is US$639/tonne, up US$12 from last week.
The freight rate for 280,000mt AG/USG is ws18.0, down ws1pt from last week. Owners' earnings are: Assuming one way (excludes any ballast) at 13knots laden, this equates to US$6,000/day (US$9,000/day last week)Round Trip Cape Laden (13knots)/Suez ballast (11knots) US$
10,100/day last week)
The freight rate for 270,000mt is ws34.0, down ws2.5pts from last week, so owners' earnings are:Round Trip Ras Tanura/Ulsan US$7,000/day at 11knots ballast and 13knots laden (US$11,600/day last week)
Last Week’s Average
VLCC AG Weekly Spot Fixtures by VolumeIntended Discharge (
21 -27 Mar 2013
VLCC AG Monthly Spot Fixtures by VolumeFinal Destination (Feb 2013)