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Table of Contents
Dirty
There remains a lack of fixture activity to really test where DPP t/c rates are but this week has felt like a more stable week.
Whilst we continue to watch to see how the current conflicts may hopefully resolve, earnings have subsided and lack of paper support has led to bids falling away. From a timecharter perspective this could lead to more achievable timecharter conversations to take place across all the sectors. It is good to see a long-term newbuild Suezmax deal subjects lifted to establish where newbuild levels can be transacted at. The longer-term interest from charterers increasingly seems to be the period of choice giving owners more reasons to debate their longer-term strategies.
Crude 1 Year TC Rates ($/day)
Clean
The story this week is the resurgent East market. Notably, Middle distillates stocks in Singapore rose 16.2% w/w to a 25-week high which is not something many would have predicted in the 6th week of this crisis, but is reflective of an overbought product market in the short term. Australia is the main bidder and as a result MR earnings are propelled North of 40K PD PD. A number of MR fixtures for periods between 6 and 12 months are noted whilst less liquidity in 3 or 5 year deals so far whilst the short term Iran situation remains so wildly uncertain. The LR market East of Suez remains dead. This segment continues to be driven by West/East loadings and the Atlantic dirty market, which has softened this week but remains at eyewatering levels. Few CPP LR Tc transactions are happening as a result.
Clean 1 Year TC Rates ($/day)
Time Charter Rates
| Non-Eco | Eco | Scrubber | FFA | 12M | ||||||
| 1 Year | 2 Year | 3 Year | 1 Year | 2 Year | 3 Year | 1 Year | Route | Spot | Avg.* | |
| VLCC | 97,000 | 70,000 | 55,000 | 107,000 | 80,000 | 65,000 | 3,000 | TD3C VLCC – MEG/CHINA | 498,000 | 166,500 |
| Suez | 60,000 | 45,000 | 40,000 | 65,000 | 52,500 | 45,000 | 2,000 | TD20 SUEZMAX – WAF/UKC | 89,250 | 54,750 |
| Afra (West) | 60,000 | 43,500 | 36,000 | 65,000 | 48,000 | 38,000 | 1,500 | TD25 AFRAMAX – USG/UKC | 98,000 | 55,500 |
| Afra (East) | 57,500 | 42,000 | 36,000 | 62,500 | 48,000 | 38,000 | 1,500 | TD8 AFRAMAX – MEG/SING | 146,250 | 48,250 |
| LR2 | 47,500 | 42,000 | 36,000 | 52,500 | 50,000 | 40,000 | 1,500 | TC20 LR2 AG/UKC | 92,250 | 22,000 |
| LR1 | 37,500 | 32,000 | 25,000 | 41,000 | 34,000 | 27,000 | 1,000 | TC5 LR1 – MEG/JAPAN | 131,500 | 42,500 |
| MR (West) | 34,000 | 24,000 | 20,000 | 36,000 | 25,000 | 23,500 | 750 | TC2 + TC14 TRIANGULATION | 104,750 | 38,500 |
| MR (East) | 28,000 | 23,000 | 20,000 | 30 ,000 | 25,000 | 23,500 | 750 | TC7 MR – SING/AUS | 46,750 | 20,250 |
| Handy | 24,000 | 19,500 | 17,500 | 26,000 | 21,000 | 19,500 | 500 | |||
Dirty Fixtures
| Name | DWT | Blt | Builder | Period | Charterer | Rate $/DAY | Scrubber | Remarks |
| NORDIC SPACE | 157 | 2017 | SUNGDONG | 12 MOS | SHELL | $75,000 | SINGAPORE | |
| LORD BYRON 21 | 156 | 2021 | SAMSUNG | 50-100 DAYS | SHELL | $112,500 | Y | SINGAPORE |
| PAROS | 107 | 2003 | IMABARI | 3 MOS | ESSENTIA | USG |
Clean Fixtures
| Name | DWT | Blt | Builder | Period | Charterer | Rate | Scrubber | Remarks |
| NAVE SEXTANS | 49 | 14 | 12 MOS | LDC | $29,000 | WEST | ||
| HAFNIA RAVEN | 49 | 15 | 2 YRS | CLEARLAKE | SINGAPORE | |||
| AYAME | 49 | 22 | FAR EAST | |||||
| MERIDIAN EXPRESS | 44 | 13 | 12 MOS | MERCURIA | $28,000 | SINGAPORE | ||
| HYUNDAI MIPO 2938 | 38 | 26 | 3-6 MOS | CARGILL | EX YARD KOREA |
Tanker S&P
The difficulty engulfing Buyers is the ‘post-war’ price to pay for prompt or not-so-prompt tonnage. Sellers are earning too much in these buoyant markets and simply aren’t bothered to negotiate, so the number of transactions this week is down.
The VLCC “KASAGISAN” (302,478 dwt / built 2006 Mitsui, Japan) was calling for offers on the 13th April, and we hear she is sold at US$ 60 m or so, which is a good chance for us to gauge ‘post-war’ prices. The last Japanese sale was the ”KIHO” (300,866 dwt / built 2006 IHI, Japan), which was sold for US$ 51 m just prior to the start of the US/Iran war.
NGM has added another Suezmax to its fleet and picked up the “STENA SURPRISE” (158,491 dwt / built 2012 Sungdong, S. Korea) at a price reported to be as high as US$ 68 m, which is another jump from the ‘pre-war’ price of the “SIGRUN” (156,092 dwt / built 2013 Sumitomo, Japan), which went for US$ 65m at the end of Feb.
Aframaxes are being watched closely, with earnings in the North Sea at over US$250k per day. Performance’s “P. ALIKI” (104,304 dwt / built 2010 Hyundai Ulsan, S. Korea) has gone for, at first, a low-looking USD 42.65 m, which implies a forward delivery.
| Prices ($m) | Newbuild | 5 Year | 10 Year |
| VLCC | 128.5 | 139 | 110 |
| SUEZMAX | 87.5 | 90 | 77 |
| AFRAMAX | 76 | 75 | 62.50 |
| MR | 50 | 47 | 37.00 |
Recent Sales
| Dwt | Built | Yard | Buyers | Price ($m) | Notes | |
| KASAGISAN | 302,478 | 2006 | Mitsui (Japan) | Undisclosed | xs 60 | DD due 7/27. BWTS. |
| STENA SURPRISE | 158,491 | 2012 | Sungdong (Korea) | NGM Energy | xs/high 60 | SS due 5/27. BWTS. Scrubber. |
| P. ALIKI | 104,304 | 2010 | Hyundai Ulsan (Korea) | Trafigura | 42.65 | DD due 8/28. BWTS. Scrubber. Dely 9/26. |
| PRO ONYX | 49,999 | 2019 | Hyundai Mipo (Korea) | Undisclosed | 39 | Deepwell. DD due 9/27. BWTS. Scrubber. Tier III. Basis TC attached. |
| GT FREEDOM | 45,994 | 2003 | Shin Kurushima (Japan) | Undisclosed | 8.5 | Pumproom. DD due 6/26. BWTS. |
| BRO NUUK + BRO NISSUM | 16,650 | both 2008 | Qiuxin (China) | Turkish buyer | 12 each | Marineline. 9 grades. DD due 4+8/26. Ice 1A. Renamed. |
Tanker S&P Values ($m)
