Dirty

It has been something of a mixed bag on the spot market this week. VLCCs improved through the early part of the week, although momentum now feels to be levelling off heading into the weekend. Suezmaxes started the week on a softer footing but appear to have steadied once again, whilst Aframaxes have taken the biggest hit, with rates coming under the most pressure across the crude sectors. Despite the differing performances across the sizes, overall activity remains relatively subdued.

Against this backdrop, the disconnect between Owners’ and Charterers’ ideas on period business remains firmly in place. Owners continue to anchor offers at levels reflective of recent spot strength and elevated asset values, whilst Charterers are struggling to reconcile these numbers against weaker forward curves and softer market sentiment. As a result, meaningful TC activity remains difficult to conclude, with bid/offer gaps still proving challenging to  bridge.

Crude 1 Year TC Rates ($/day)

Clean

Having pumped out product furiously since the beginning of the conflict to the benefit of the owner/operator market, this week the USG finally sees a correction as exports reduce and ballasters arrive generating a softening in spot earnings. Given the ongoing draw of stocks in Europe and refinery margins it is expected that volume will come back to the market it is just a question of when. Alas the volatility remains in the Atlantic whereby returns in the East remain somewhat more consistent lacking the extreme swings of the West. The market is now seeing currently more interest in longer term deals for both prompt and forward delivery across the sizes mirroring the pattern of ‘freight security’ that is replicated in the crude market.

Clean 1 Year TC Rates ($/day)

Time Charter Rates

Non-EcoEcoScrubberFFA12M
1  Year2  Year3  Year1  Year2  Year3  Year1 YearRouteSpotAvg.*
VLCC102,000  70,000  55,000  112,000  80,000  65,000  3,000 TD3C  VLCC – MEG/CHINA485,250190,000
Suez62,500  45,000  41,000  67,500  52,500  47,000  2,000 TD20 SUEZMAX – WAF/UKC88,25057,500
Afra (West)57,500  43,500  37,000  62,500  46,500  39,000  1,500 TD25 AFRAMAX – USG/UKC75,00052,500
Afra (East)55,000  41,000  39,000  59,000  45,000  39,000  1,500 TD8 AFRAMAX – MEG/SING115,75038,750
LR248,000  42,000  37,000  53,000  46,500  38,000  1,500 TC20 LR2 AG/UKC98,25019,000
LR137,500  32,000  27,000  41,000  34,000  28,500  1,000 TC5 LR1 – MEG/JAPAN124,75041,000
MR (West)33,000  24,000  20,000  35,000  26,000  23,500  750 TC2 + TC14 TRIANGULATION42,00029,000
MR (East)28,000  24,000  20,000  24,500  26,000  23,500  750 TC7 MR – SING/AUS40,50017,750
Handy24,000  19,500  17,500  28,000  21,000  19,500  500 

Dirty Fixtures

NameDWTBltPeriodLaycanDeliveryChartererRateScrubber
DHT AMAZON318201112 MOS MAY 26FAR EAST$109,000Y
DHT SUNDARBANS318201212 MOSAPR 26SINGAPORE$109,000Y
STENA SUPERIOR 1572010PNRMAY 26CAPE TOWNEXXONY
ACHILLEAS157201024 MOSJAN27ROTTERDAMCHEVRON

Clean Fixtures

NameDWTBltPeriodLaycanDeliveryChartererRateScrubber
IONIAN SERENITY5020273 YRSJAN27EX YARD CHINABP$21,500Y
IONIAN LORD5020273 YRSMAY27EX YARD CHINABP$21,500Y

Tanker S&P

Tanker Sale & Purchase activity remains at a strong level, despite the increased freight volatility in the most recent days and the overall obvious sensitivity to ongoing geopolitical events. We feel there is still a good percentage of Owners with confidence in the market going forward, and who expect freight levels to remain elevated, even after a potential opening of the Strait of Hormuz and the current ongoing peace talks between the U.S. and Iran. 

After selling a few of their vintage tankers in recent months, Torm is rebuilding their fleet with the acquisition of four MR resales ex Jingjiang Nanyang for delivery 27/28, at a price tag US$ 48 m per unit. Two VLCCs the C. INNOVATOR + C. PROGRESS (313,999 dwt / both built 2012, Dalian No. 2, China Hyundai Ulsan, Korea) have gone at around US$ 60.3m each, which is highly discounted due to long-term charter employment attached to the vessels. The Suezmax AEGEAN HORIZON (158,738 dwt / blt 2007, Hyundai Ulsan, S. Korea) has been sold to an undisclosed party at US$ 50.10m, SS due 8/27. This is a touch more than the SUEZ ENCHANTED (159,233 dwt / blt 2007 Hyundai Samho, S. Korea) was tied up at, a few weeks back, at US$ 48m, but then failed. Tsakos has sold on two dirty trading LR1s, the SELECAO + SOCRATES (74,300 dwt / blt 2008, Sungdong, Korea) at low US$ 20s m each as part of their ongoing fleet renewal. Similar vessels we’re getting sold in the mid-teens only about half a year ago!                                                                          

Prices ($m)Newbuild 5 Year10 Year
 VLCC 131140110
 SUEZMAX 949280
 AFRAMAX 7977.5066
 MR 524939

Recent Sales

DwtBuiltYardBuyersPrice ($m)Notes
Tankers
C. INNOVATOR313,999both 2012Dalian No. 2 (China)Undisclosed60.3 each (en bloc)SS due 10/27. Scrubber. Inc TC.
C. PROGRESS314,000both 2013Hyundai Ulsan (Korea)Undisclosed60.3 each (en bloc)SS due 10/27. Scrubber. Inc TC.
AEGEAN HORIZON158,7382007Hyundai Ulsan (Korea)Undisclosed50.1SS due 8/27.
SELECAO + SOCRATES74,300both 2008Sungdong (Korea)Undisclosedlow 20s each (en bloc)Pump-room. Trading dirty. DD due 5+6/26.
CERS51,3712006ShinA (Korea)Undisclosed14.5Deepwell. SS due 6/26. Ice 1B. 
GEMINI PEARL50,5622007SPP (Korea)Windar Shipping17Deepwell. SS due 5/27. BWTS. Renamed. 
JINGJIANG NANYANG YZJF2024-005 + 006 + 007 + 00849,8002027-2028Jingjiang Nanyang (China)Torm48 each (en bloc)BWTS. Tier III.
CHEMSTAR RIVER22,4072017Shin Kurushima (Japan)Undisclosed33 (BBHP)Stainless steel. SS due 7/27. BWTS. Basis 3 yrs BB back.
RUBIKON 7816,6422005Qiuxin (China)Taiwanese buyer7Epoxy. 9 grades. SS due 4/26. BWTS. Ice 1A. Renamed.

Tanker S&P Values ($m)

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