Marginal drop in VLCC traffic out of Mid-East
THERE was only a marginal drop in VLCCs (very large crude carriers) and ULCCs (ultra-large crude carriers) fixed out of the Middle East Gulf last week, involving 15 vessels of 4.2 million deadweight tonnes, although most have been closed to the Far East and Red Sea.
There has been little or no change in the rate pattern with VLCCs earning Worldscale (WS)47.5 to the Gulf and WS 49 to the Britain-Continent, and ULCCs have accepted WS 42.5 to the Red Sea and WS 41.5 on a 500,000 tonner to France.
Rates to the East, however, are more unpredictable, depending upon size and destination, with small VLCCs to Taiwan closing at WS 46 while a similar size to China obtained WS 55.
Japan has been more discerning in its choice of vessel, registering as high as WS 57.5.
The number of vessels available in the Middle East Gulf up to February 12 has crept up to about 87 of 25 million deadweight tonnes.
Aframax vessels trading out of this area have certainly enjoyed a better enquiry pattern to where such sizes operating to the East are earning rates of WS 105 to Australia and up to around WS 120 for the shorter haul to Mombasa.
There can be little doubt that the most fruitful pickings for owners at the time are in West Africa where demand continues unabated for vessels of around the million-barrel size.
Rate levels are registering WS 90 to the US Gulf with a premium obtainable for discharging on the US Atlantic coast.
There has, however, been far less utilisation of VLCCs out of the area this week with WS 62.5 being paid for a voyage to the Britain-Continent-Mediterranean, a level which shows no change from last week.
The Mediterranean market peaked in the middle of the week with a large influx of inquiry encompassing all sizes of vessels from 80,000 deadweight up to and including VLCCs.
In spite of the volume of business that has been transacted in the Caribbean for black oil carries, rates have not maintained their previous levels and owners have been forced to accept somewhat less for their Aframax-size vessels in order to obtain employment.
For voyages to the US and US Gulf, an average of WS 130 has been paid.
Trading out of the North Sea has been busy, but not spectacular, with the large ships playing a far less active role this week and the more normal 80,000 tonner being in greater demand.
Rates for this size vessel are standing at WS 110 for inter-North European movements while million-barrel tankers in the same trade are closing at between WS 105 and WS 110.
The most interesting facet of the period market this week has been the uncorroborated reports of two contracts of affreightment, one for VLCCs to South Africa over a whole of the five-year period.
It was also reported that an American major who has shown interest in newbuilding VLCCs has made an initial counter for a seven-year time charter, delivery 1996-1997, at $30,600 for the first year of the charter deal. Report supplied by London ship broker E.A. Gibson.
