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Dirty
A relatively inactive week in terms of volumes of fixtures but that is to be expected given the uncertainty of spot markets, trade flows and distorted tonnage availability. Whilst VLCC’s continue to experience a disrupted market valuing t/c seems particularly difficult further hindered by unsettled paper opinions. As is common of late there is more demand for Suezmaxes for the shorter period, but owners so far are not rushing to fix period with plentiful returns available on the spot. There is also longer-term interest, and we are beginning to witness some fixtures for newbuilding’s suggesting a change of strategy. Aframaxes become even hotter property this week as spot in the West takes another step up but there are little candidates to satiate the demand.
Crude 1 Year TC Rates ($/day)
Clean
The Atlantic MR market has fired again this week on the back of further escalation in the AG. Interestingly we also note firming on some routes in the Far East to end the week, which will come as welcome news to Owners here given the price of bunkers and recent erosion of TCE. In general it is difficult to get traction on anything which isn’t delivering in the Atlantic, where deals for short period and up to 2 years have been reported. However, this supply imbalance cannot persist forever and already some are looking East for value on MRs. LRs have so far proven to be an illiquid TC trade since this crises began, given the enormous upheaval of their main trading route out of the AG.
Clean 1 Year TC Rates ($/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 | 80,000 | 60,000 | 50,000 | 100,000 | 70,000 | 60,000 | 3,000 | TD3C VLCC – MEG/CHINA | 421,500 | 103,000 |
| Suez | 65,000 | 47,500 | 42,500 | 75,000 | 60,000 | 50,000 | 2,000 | TD20 SUEZMAX – WAF/UKC | 126,750 | 50,250 |
| Afra (West) | 52,000 | 42,000 | 36,000 | 62,000 | 50,000 | 39,500 | 1,500 | TD25 AFRAMAX – USG/UKC | 127,750 | 52,000 |
| Afra (East) | 50,000 | 42,000 | 36,000 | 58,000 | 50,000 | 39,500 | 1,500 | TD8 AFRAMAX – MEG/SING | 138,750 | 46,000 |
| LR2 | 40,000 | 42,000 | 36,000 | 45,000 | 50,000 | 38,500 | 1,500 | TC20 LR2 AG/UKC | 48,500 | 12,500 |
| LR1 | 37,000 | 30,000 | 24,000 | 40,000 | 31,000 | 26,500 | 1,000 | TC5 LR1 – MEG/JAPAN | 66,500 | 29,750 |
| MR (West) | 35,000 | 25,000 | 19,500 | 37,000 | 27,000 | 22,500 | 750 | TC2 + TC14 TRIANGULATION | 73,000 | 33,500 |
| MR (East) | 28,000 | 25,000 | 19,500 | 31,000 | 27,000 | 22,500 | 750 | TC7 MR – SING/AUS | 19,250 | 13,750 |
| Handy | 24,000 | 19,500 | 17,500 | 26,000 | 21,500 | 19,500 | 500 | |||
Dirty Fixtures
| Name | DWT | Blt | Builder | Period | Charterer | Rate $/DAY | Scrubber | Remarks |
| FREEDOM GLORY | 114 | 2020 | SAMSUNG | 12 MOS | CNR | 52K | N/A | CHINA |
Clean Fixtures
| Name | DWT | Blt | Builder | Period | Charterer | Rate | Scrubber | Remarks |
| SEA COUGAR | 49 | 2019 | STX | 5 MOS | CNR | 57K | Y | WEST |
| CAPE AVANTI | 49 | 2025 | Jiangsu | 2 YRS | MERCURIA | 28K | Y | WEST-ON SUBS |
| CLEAROCEAN MUSIC | 49 | 2018 | Hyundai | 8 MOS | SUNCOR | 30.4K | N/A | WEST |
| MFM MEMPHIS | 48 | 2011 | Lwagi | 5-7 MOS | VITOL | 30K | N/A | INDO |
Tanker S&P
The Arcadia Tankers controlled AEGEAN VISION (158,871 dwt / built 2017 Hyundai Ulsan, Korea) has been sold for a very firm US$ 82 m to undisclosed interests. Interestingly, pricing is not miles off from Chinese newbuildings berths in this size segment for 2-3 year forward delivery, hence it might be the right timing for some fleet renewal for certain owners convinced by current market fundamentals.
Heidmar has managed to sell the Suezmax LIBERA (158,319 dwt / built 2009 Samsung, Korea) to Greek interests at US$ 43.5 m. Further, the NORDIC SKIER (159,089 dwt / built 2005 Hyundai Ulsan, Korea) is reportedly sold at US$ 40 m. Owners NAT managed to pick up the vessel for a price of US$ 36.5 m in the summer of 2014 and turning a nicely timed profit 12 years on!
| 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 | |
| NORDIC SKIER | 159,089 | 2005 | Hyundai Ulsan (Korea) | Undisclosed | 40 | SS psd 8/25. BWTS. |
| AEGEAN VISION | 158,871 | 2017 | Hyundai Ulsan (Korea) | Undisclosed | 82 | SS due 5/27. BWTS. |
| LIBERA | 158,319 | 2009 | Samsung (Korea) | Greek buyer | 43.5-44 | SS psd 10/25. BWTS. Renamed. |
| BUM SHIN | 19,997 | 2003 | Shin Kurushima (Japan) | Chinese buyer | 7.5 | Stainless steel. DD due 5/26. |
Tanker S&P Values ($m)
