Freight rates on the WAF-Northwest Europe route, basis 130,000 mt, slumped Worldscale 35 to be assessed at w95 (equivalent to $18.77/mt) hitting the lowest levels assessed since December 11, when rates on the route were $17.71/mt, according to Platts data.
Typically freight rates on the WAF-Mediterranean route, basis 130,000 mt, move in tandem with the rates on the WAF-NWE route.
Platts data shows rates on WAF-Med, basis 130,000 mt, fell w35 to be assessed at w95, equivalent to $19.71/mt, hitting the lowest level since $18.56/mt assessed on December 11.
"The [WAF] Suezmaxes continue to fall off the cliff," a shipbroker said.
"There are 87 vessels available until 20 February, and 11 have gone off subjects so far."
Charterers were previously heard getting Very Large Crude Carriers on subs on WAF-NWE and WAF-Med routes, after the Suezmax freight rates on the same routes hit five-and-a-half-year highs earlier this week. This led to downward pressure on Suezmax freight rates, shipping sources said.
Sources said the fall in Suezmax rates would probably put an end to the loading of Suezmax cargoes on VLCCs on the WAF-UK Continent and WAF-Mediterranean routes. "The co-loadings on VLCCs will stop, the only reason they happened was high Suezmax rates and now Suezmaxes rates have dropped off," said a shipbroker.
"Co-loadings on VLCCs probably won`t happen again unless there is a 10-point drop in WAF-UKCM VLCC rates," a second shipbroker said.
VLCC rates on the WAF-NWE route, basis 260,000 mt, fell w2.5 Thursday to be assessed at w77.5, which equates to $15.31/mt.
There was a generally softer sentiment on WAF VLCC rates as more ships were heard to have become available in the region. "There`s been an increase in tonnage in WAF, rates are probably coming off," said a shipbroker.