Slow Start for Tanker Rates in New Year

 

Continued interest for period is keeping the momentum going and rates ex Meg seem to withstand charterers fierce attempts to shave further off the rates. Close to two thirds of the January program covered so far in the Meg and further direction dependent on what is left before the BOT Feb stems are available only in a week or so. 

 

Wafr/East continues steady with dates well into Feb being traded and rates stable. Increased activity Caribbean/East with rates firming is absorbing tonnage available in the area. For Suezmaxes, the beginning of the year has endured a lot of activity in the west and especially ex Wafr. 

 

Charterers have approached the market with fresh cargoes for 3rd decade Jan, and as a result cranked up the rates to a new fixing level at W85 for UKCM voyages ex Wafr. There are still 7-10 days delays north bound in Turkish Straits as well as reported increased delays in Wafr ports which might add pressure to the firm trend we are seeing. 

 

In the east there are also increased activity ex Meg, however the rates have balanced sideways of last done due to overhang of vessels in position. Ice restrictions for ships calling at the Baltic port of Primorsk are set to be introduced from Jan 17th. Despite this, rates came off rapidly in the Nsea and Baltic region due to lack of activity. 

 

Quite a few Aframax cargoes loading in strategic ports in the Nsea have been fixed on both Suezmaxes and VLCCs consequently leading to more available Aframax tonnage and adding further downward pressure on rates. 

 

We have seen very low numbers for both XMed and Bsea/Med. Last week rates declined as W145 was done Sidi K/Trieste, this week they dropped further and W110 was done Sidi K/Pgal. The decline is mainly due to the lack of cargoes both in the Med and Bsea. Bsea was covered up to mid-Jan in mid-Dec.