Large Tanker Fixing Slows, Rates Soften

Large tanker fixing out of the key Middle East market slowed this week as charterers had largely covered their October liftings, resulting in a softening of rates by about two and a half Worldscale points, according to brokers. Despite quiet conditions, brokers said they do not expect rates to fall much further for modern vessels. However, older ships can expect longer waits and decreasing incomes. Owners should be able to maintain rates or achieve some improvements over the next month, since only 60 vessels of 17.5 million tons are available in the Mideast in the next month, brokers said, but the market is expected to remain quiet until November cargoes start becoming available in about a week.