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Table of Contents
Dirty
Crude earnings in the West continue to be at elevated levels particularly the Afra’s which have taken another step up this week. There appears to be a sense of worry that the ballasters from the East will soon arrive into the fixing window and taper earnings but for now freight is astronomical in the West. Launch cargo earnings remain paramount to offset levels which could be very different further down the curve. A longer term VLCC deal was done at strong levels setting a benchmark and again another forward delivery is reported but in general the uncertainty of the future continues to provide an air of caution for all parties and hence we are not seeing a great volume of t/c activity.
Crude 1 Year TC Rates ($/day)
Clean
The strength of this Atlantic tanker market continues to shock and awe. The relaxation of the Jones Act , combined with a relentless supply of longhaul cargoes (particularly ex USG Coast) is seeing freights which even the most bullish MR Owners wouldn’t have dreamed up. Reports of MR TC bids in the Atlantic north of 40K for 12 months are again noted however the appetite is not universal; some Traders remain cautious and prefer to focus on profit maximisation. The East paints a different story – the market feels reasonably well offered of candidates across both prompt and deferred dates. Charterer appetite is restrained, particularly as there remain few ships left with cheap bunkers onbard to capitalise on, and therefore profitable launch cargoes are challenging to come by. LR1s remain disjointed with the AG disruption whilst straight LR2 deals remain tough to value amidst the searing strength of the West Aframax market.
Clean 1 Year TC Rates ($/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 | 90,000 | 70,000 | 55,000 | 107,000 | 80,000 | 65,000 | 3,000 | TD3C VLCC – MEG/CHINA | 376,000 | 148,250 |
| Suez | 70,000 | 50,000 | 42,500 | 75,000 | 57,500 | 48,000 | 2,000 | TD20 SUEZMAX – WAF/UKC | 229,750 | 74,500 |
| Afra (West) | 68,000 | 45,000 | 36,000 | 73,500 | 50,000 | 40,000 | 1,500 | TD25 AFRAMAX – USG/UKC | 253,750 | 74,250 |
| Afra (East) | 60,000 | 42,000 | 36,000 | 65,000 | 50,000 | 40,000 | 1,500 | TD8 AFRAMAX – MEG/SING | 133,000 | 53,500 |
| LR2 | 45,000 | 42,000 | 36,000 | 50,000 | 50,000 | 40,000 | 1,500 | TC20 LR2 AG/UKC | 54,750 | 17,750 |
| LR1 | 38,000 | 32,000 | 25,000 | 41,000 | 34,000 | 27,000 | 1,000 | TC5 LR1 – MEG/JAPAN | 81,000 | 44,750 |
| MR (West) | 37,000 | 26,000 | 20,500 | 39,000 | 27,000 | 22,500 | 750 | TC2 + TC14 TRIANGULATION | 101,250 | 40,250 |
| MR (East) | 25,000 | 23,000 | 19,500 | 27,000 | 25,000 | 22,500 | 750 | TC7 MR – SING/AUS | 34,000 | 18,750 |
| Handy | 24,000 | 19,500 | 17,500 | 29,000 | 21,500 | 19,500 | 500 | |||
Dirty Fixtures
| Name | DWT | Blt | Builder | Period | Charterer | Rate $/DAY | Scrubber | Remarks |
| OLYMPIC LYRA | 299 | 19 | Hyundai | 5 YEARS | HYUNDAI GLOVIS | 59.4K | Y | EAST |
| FRONT DUCHESS | 299 | 17 | Hyundai | 4-6 MOS | HOB | Y | CILACAP | |
| SEAWAYS COLORADO | 158 | 12 | Samsung | 3 YEARS | VITOL | UKC | ||
| ATHENS SPIRIT | 158 | 12 | Samsung | 12 MOS | CHEVRON | CARTAGENA | ||
| CAPE ATHOS | 114 | 26 | Tianjin | 60-120 DAYS | MERCURIA | 45K | EAST |
Clean Fixtures
| Name | DWT | Blt | Builder | Period | Charterer | Rate | Scrubber | Remarks |
| PIS TERNATE | 49 | 26 | Hyundai | 2 YEARS | ATA | 23.5K | WW | |
| PIS PAPUA | 49 | 26 | Hyundai | 2 YEARS | ATA | 23.5K | WW | |
| LEGEND INNOVATOR | 49 | 26 | Taizhou | 1 YEAR | CNR | 30K | EX YARD CHINA | |
| LARGO ENERGY | 49 | 14 | Hyundai | 18 MOS | TRAFIGURA | 34.5K | BELFAST |
Tanker S&P
Expanding on last week’s swathe of suezmax sales, Sinokor/MSC is reported to be behind the en bloc purchase of both scrubber-fitted AEGEAN MARATHON and AEGEAN VISION (158,900 dwt / built 2016 + 2017 Hyundai Ulsan, S.Korea) at a reported US$ 82 m apiece, and of the scrubber-fitted SILVERWAY (157,781 dwt / built 2017 Sungdong, S. Korea) at the same price, as a seeming next stage of fleet expansion following the VLCC raid that dominated the first quarter of this year, taking asset values with it to dizzying heights. While this strategy may have a more modern-aged focus to it, elsewhere other undisclosed buyers have picked up the twenty-year-old SEACROSS (163,292 dwt / built 2006 Hyundai Samho, S.Korea) for a strong US$ 43.5 m, supported by ice class 1B notation, well-reputed ownership history, and a recently passed Special Survey, but nonetheless putting the January sale of ECLIPSE I (158,933 dwt / built 2006 Hyundai Samho, S.Korea) at US$ 33 m, with Special Survey due in August, in the shade.
| Prices ($m) | Newbuild | 5 Year | 10 Year |
| VLCC | 128.5 | 139 | 110 |
| SUEZMAX | 87.5 | 90 | 77 |
| AFRAMAX | 76 | 75 | 62.50 |
| MR | 50 | 47 | 37.00 |
Recent Sales
| SEACROSS | 163,292 | 2006 | Hyundai Samho (Korea) | Undisclosed | 43.5 | SS psd 1/26. Ice 1B. BWTS. |
| AEGEAN MARATHON + AEGEAN VISION | 158,900 | 2016 + 2017 | Hyundai Ulsan (Korea) | Sinokor/MSC | 82 each (en bloc) | SS due 5/26 + 5/27. BWTS. |
| SILVERWAY | 157,781 | 2017 | Sungdong (Korea) | Sinokor/MSC | 82 | SS due 1/27. BWTS. Scrubber. |
| TALUREX | 115,984 | 2011 | Samsung (Korea) | Undisclosed | 110 (en bloc) | SS due 7/26. BWTS. |
| SOLVANTE | 110,295 | 2009 | Mitsui (Japan) | Coated. Trading dirty. DD due 6/26. BWTS. | ||
| SEA RAKER | 70,426 | 2005 | Universal (Japan) | HK Chinese buyer | 14 | Pump-room. DD due 10/27. Renamed. |
| HIGH SEAS | 49,999 | 2012 | Hyundai Mipo (Korea) | Undisclosed | 27 | SS due 3/27. BWTS. |
| ACADIAN | 37,515 | 2005 | Hyundai Mipo (Korea) | Undisclosed | 10 | Deepwell. SS psd 7/25. BWTS. Scrubber. Ice 1B. |
Tanker S&P Values ($m)
