Japanese charterers were more in evidence last week after the New Year holiday, but rates generally remained in the low to mid-WS 60s, while rates to other eastern destinations ranged between WS 57.5 and WS 62.5.

VLCC and ULCC tonnage available in the Middle East Gulf for the next four weeks amounts to 43 vessels totalling 13 million tonnes, sufficient to keep this market in equilibrium.

Inquiry for Aframax tonnage in the area remained steady and rates varied according to quality of tonnage and destination.

Vessels fixing to Singapore achieved WS 120 while more modern tonnage to Australia was fixing at a premium of about 7.5 points. A million-barrel vessel fixed from the area to Turkey at WS 77 and a similar size to China at WS 83.5.

Inquiry from Indonesia to eastern destinations was brisk with rates climbing to WS 125 for 80,000-tonne lots.

Last week's star performer was the West African market with about six VLCCs being fixed for various options, as well as numerous million-barrel fixtures being concluded. This level of activity pushed rates into the low WS 100s for 130,000 tonnes to the Mediterranean and Britain-Continent, and WS 95 for US discharge.

While there was interest in moving million-barrel parcels from the area to the Far East and rates of about US$1.15 million lump sum were achievable, by the week's end little or nothing was concluded.

VLCC rates rose steadily throughout the week from the low to mid-WS 60s up to WS 72.5 to the US Gulf, and WS 60 was paid to the Far East.

The Mediterranean market was somewhat overshadowed by the activity in other areas and rates were generally maintained at about WS 100 for 80,000 tonnes cross-Mediterranean. It became clear that tonnage into January 25 was becoming scarce and the latest fixtures were arranged at about WS 107.5. Rates for million-barrel tonnage from both Sidi Kerir and the Russian Black Sea were similar at about WS 82.5-85.

As previously mentioned, the extreme weather conditions combined with generally increased seasonal demand resulted in rates rising to WS 195 for 70,000 tonnes upcoast, which represents a 20-point increase on the previous week.

Transatlantic rates were able to benefit accordingly with WS 142.5 paid for 70,000 tonnes to Britain-Continent.

Owing to the disruption in North Sea loadings, rates varied considerably. While the majority of 80,000-tonners fixed cross-North Sea at between WS 115 and WS 117.5, rates for the less popular voyages saw considerable increases, the most extreme being WS 140 to the US Atlantic coast and WS 152.5 to the Mediterranean.

Some charterers were able to combine cargoes, achieving rates of about WS 105 on 130,000 tonnes to the US Atlantic coast and WS 110 for discharge on the continent.

VLCCs were fixed at WS 65 for the US Gulf and WS 70 for east coast Canada, and a 350,000-tonner fixed to the US Gulf at WS 56.5.

The only period fixture of note last week was of a modern VLCC to Middle Eastern charterers for 12 months in direct continuation at $25,250 per day.

In the product tanker market, inquiry continued in the US-Caribbean despite the difficulties on the US east coast, while in the Mediterranean a severe shortage of naphtha-suitable tonnage enabled owners to substantially increase their earnings.

The east remained active with no immediate sign of waning although prompt liftings in the Middle East for medium range tonnage saw short-haul freight levels falling slightly. Therefore, the clean products market has started the year on a firm footing and, as usual, will provide plenty of interesting opportunities throughout the year.

Charterers working the long range market from the Middle East to South Korea and Japan have been faced with the steady levels of WS 210-205 basis 55,000 MT cargoes, while owners of Japanese-suitable medium range vessels would be looking to fix at about WS 260-250 on the same run.

The shorter-haul movements have shown a certain amount of weakness with one charterer concluding below WS 200 for a movement to India off an early position, although most owners will attempt to hold rates at the WS 220 level.

In the Mediterranean market, a definite lack of naphtha tonnage, particularly with JGS, enabled owners to improve their freight levels and at the week's end such tonnage could secure rates in excess of WS 250 basis cargoes of 27,250 tonnes for the usual voyage from North Africa to the Mediterranean or Britain-Continent.

Non-JGS, but nonetheless naphtha clean tonnage, was able to secure in the low to mid-WS 200s for similar employment. There has been a significant interest in shipping jet and gasoil from the Mediterranean to the east and both medium and long range vessels have been fixed.

Levels for 30,000 tonnes of gasoil to west coast India reached about $750,000 lump sum, and long range tonnage secured close to $1.3 million to $1.4 million for Singapore discharge.

Report supplied by E.A. Gibson Shipbrokers, London.