European Aframax freight rates hit fresh lows amid warmer weather, more tonnage

Time:2014-03-03 Browse:236 Author:RISINGSUN
North Sea and Baltic Aframax rates hit a fresh low of 2014 Thursday on the back of low demand and with more ice-class vessels available to the market due to warm weather in Europe, shipping sources said Friday.


Freight rates on the route fell $0.47/mt on the day to be assessed by Platts at $6.57/mt Thursday, the lowest since November 27 when the rate was $5.89/mt.


Typically, Aframax rates for routes across Northwest Europe, on the basis of 80,000 mt volumes, move in tandem with the rates on the Baltic-NWE route, basis 100,000 mt.


Freight rates on the Cross-NWE route fell $0.19/mt Thursday to be assessed by Platts at $6.55/mt, the lowest since November 27 when they were $6.52/mt.


On Friday, shipping sources continued to peg the rates on the Baltic-NWE route within a range of Worldscale 70-72.50, equating to $6.57-6.80/mt, and said the rate for the Cross-NWE route was w85-87.50, or $6.55-$6.36/mt.


"North Sea and Baltic Aframaxes continue to suffer as warm temperatures point to a shortened ice season. This combined with minimal levels of inquiry has led to rates dropping significantly this week," a shipbroker said.


Meanwhile, a charterer said: "The market is looking slightly softer so a lot of owners then typically want longer hauls. It`s a normal market mechanism."