Another week of a lack of
VLCC cargoes, resulted in the tonnage list becoming longer than seen for some
time.
As a result, the competition
for cargoes has intensified and the downward pressure increased. Rates softened
both in the MEG and in West Africa.
Earnings approached $10,000
per day but we may be near the bottom for now, Fearnleys said in its weekly
report.
Suezmaxes have again
experienced a testing week with very limited action in the West to whet
appetites. Available positions in West Africa for end 2nd decade in August
tightened up slightly on the back of the high volume of fixing East of Suez and
TD20 climbed to the WS67.5 level, where it hovered into the early part of this
week.
The Med and Black sea
markets were seasonally quiet with refinery demand down. TD6 is currently
steady at WS75 but there is an expected increased in volume due in the coming
weeks, which could stimulate some momentum.
There are 13 newbuild
Suezmaxes due to be delivered during the balance of August through to
September, which will only add to owners’ challenges for the next few weeks.
The North Sea and Baltic
markets extended its seasonal trail along the bottom of the market for another
week. The fact that the majority of Litasco Murmansk cargoes were fixed on
Suezmaxes has not helped and we expect the market to stay at present levels for
at least one more week, Fearnleys said.
Cargo activity has been
fairly high in the Med and Black Sea this week. Levels have nonetheless
remained the same, apart from the occasional prompt replacement or the
lucrative long voyage. The volumes were not good enough to push the rates up on
a more permanent basis.
As a result, we expect the
market to continue in the same fashion as the previous weeks.
In the demolition market,
the upward trend continued this week with some spectacularly priced deals being
concluded by cash buyers and willing recyclers, GMS said.
The ongoing shortage of
tonnage that is increasingly coming up against a firming demand is likely a
large part of the reason that the industry has witnessed a flurry of
excellently priced deals last week.
Rising local steel plate
prices seen was not entirely expected. However, following the onset of this
years monsoon rains that have engulfed much of the Indian sub-continent and
subsequently resulted in a shortage of local product being available to the
domestic steel mills, has driven prices for ships upward.
The principally buoyant
Bangladeshi market was still enjoying the positive fallout from the reversal of
the budget some weeks ago. Buying has ramped back into gear after a tentative
and idle last few months, GMS said
This week, the industry also
welcomed the news out of India, where the GMB (Gujarat Maritime Board) issued
an ultimatum to the Alang yards still to modernise and improve their facilities
under the guidelines laid out in the Hong Kong Convention (HKC) for
ship-recycling.
This is certainly a bold and
forward thinking manoeuvre by the Indian government that should be applauded,
as it seeks to raise local standards after the great strides that have already
been made over the past few years, with over 38 local yards already bearing HKC
class approvals from the likes of NK, Rina and IRS.
In Pakistan, there was a lot
of confusion as Prime Minister Nawaz Sharif was forced to resign following a
decision by the country’s Supreme Court, reportedly due to corruption charges.
However, in times of turmoil, commodity markets often push on and at present
Pakistan seem no different, GMS concluded.
In the demolition sector,
brokers reported that the 1994-built Aframax ‘Impros’ had been taken by
Bangladeshi interests for $367 per ldt on the basis of ‘as is’ Fujairah with a
minimum amount of bunkers and gas free.
In addition, Bangladeshi
breakers reportedly tokk the 1992-built MR ‘Sanmar Serenade’ for $382 per ldt
on the basis of ‘as is’ Colombo with 200 tonnes of bunkers ROB.
Gener8 said it had agreed to
dispose of two 1999-built Suezmaxes and one 2002-built Aframax for breaking
prior to their special surveys.
In its earnings
presentation, Gener8 said that it ha sold one 2002-built Aframax in May, 2017,
and one 2002 built Suezmax tanker in June, 2017 for aggregate net proceeds of
$3.9 mill after prepaying $19.2 mill in associated debt, and the release of the
working capital from the Navig8 pools.
The company also agreed to
sell two 2016-built VLCCs for aggregate gross proceeds of $162 mill and
expected net cash proceeds of $61.5 mill, after prepayment of associated debt
and the release of working capital from the Navig8 pool.
Brokers reported the sale of
the 2002-built VLCC ‘Tsurusaki’ to Nathalin for around $22 mill and the MR
‘Tamarin’ built 2008 for $17 mill to Union Maritime.
d’Amico Tankers recently
signed a memorandum of agreement and bareboat charter contract for the sale and
leaseback of the MR ‘High Discovery’, built in 2014 by Hyundai Mipo, for $28
mill.
TEN has announced the
delivery of the Aframax ‘Stavanger TS’, the eighth in a series of nine tankers
built against long-term employment to a major European oil concern, believed to
be Statoil and one of the four with ice class specifications.
The last remaining ship to
complete the 15-vessel organic growth programme,‘Bergen TS’ is scheduled to be
delivered in the third quarter of this year.
MRs are in vogue for those
seeking newbuildings. For example, DSD reportedly ordered two, plus two
optional MRs at Hyundai Mipo for $32 mill each and for 2019 deliveries.
Oceangold reportedly
contracted four MRs at STX for $35 mill each also for 2019 deliveries, while
Italian interests were reported to have ordered two MRs at GSL for $34 mill
each, also for 2019 deliveries.
Meanwhile on Thursday of
this week, TORM signed an agreement to purchase two high-specification MR
resale vessels. They are currently under construction at Hyundai Mipo and will
be delivered to TORM later this quarter.
TORM already has 12 Hyundai
Mipo vessels in its fleet and has good technical and commercial experience with
these vessels, the company said.
During the 3Q17, TORM has
bought six MRs for 185 mill and has further newbuilding options for 10 product
tankers.
In addition, Vitol has
ordered two 84,000 cu m VLGCs at Hyundai with options for a further six.
In the charter market,
brokers reported that Clearlake had fixed the 2014-built MR ‘Green Hellas’ for
three to six months at $14,250, while Trafigura was said to have taken the
2005-built MR ‘Kriti Amber’ for three months at $13,000 per day.
Source: 04
August 2017
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