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VLCC/ULCC Markets w/e 23rd July 2010
A week that never really got going, with rates ending pretty much as they started as charterers continued to drip feed the markets with cargoes Read More.
Handymax/Size Report w/e 23rd July 2010
After all the doom and gloom of the recent weeks, it seems as though we have turned a corner generally with the rates rising again Read More.
News
Monday 26th July 2010 - VLCC/ULCC Markets w/e 23rd July 2010
A week that never really got going, with rates ending pretty much as they started as charterers continued to drip feed the markets with cargoes.
Many were hoping that August stems would truly get underway with a rush early in the week for first decade tonnage, but charterers felt there was no necessity to fight over a rather large and over burdened tonnage list. Therefore on Monday we saw Glasford picking up the 'Ceasar' at W57.5 AG/China, while yesterday Hundai Oil Bank booked Tankers International tonnage AG/South Korea at W55. AG/West was commanding low W40's and even the long haul AG/USWC was arranged at a 'mere' W65.
Atlantic markets were fairly confused, as Suezmax markets continued to sparkle allowing some combination cargoes on VLCCs. However traders fought over the same Caribbeanand Europe stems for selling in the far-east, which resulted in a number of fixing/failings, and as we go to press it is still not totally clear how many units will actually get confirmed. However, rates for these movements were fairly steady at lumpsum $3.25 million from the Caribs and just below $3million from Europe.
Prospects for the forthcoming period look to be similar, we expect a fairly healthy demand for cargoes in the second decade and despite slow steaming by many owners now, the tonnage list looks to be well populated by quality tonnage both independent and indeed oil company owned.
Interesting information from Chinese customs revealed a bullish picture for latest crudeimports, averaging 5.4 million barrels per day, a record and 34% up on one year ago! Crude processing also posted an all time high of 8.6 mb/d, however this appears to be a blip and likely average 8.2 mb/d for the balance of the year.
The Galbraith’s shipping course begins this weekend, and one of the lectures on tankers ends with a very interesting graph on average world consumption in barrels per person per annum. USA still leads the way, but declining fast to about 22.5, Europe is close to 10, while China is about 2.5 and India 1. The eastern Tigers are already half the spot market in VLCCs, makes one wonder where they might be in a few years.