Baltic-NWE dirty Aframax rate hits 4-month high on tight tonnage: sources
Time：2014-06-20
Browse：100
Rates rose by Worldscale 30 to be assessed by Platts at w105, which equates to $9.86/mt, the highest level since $10.33/mt on February 4.
Market sources said there has been an extreme shortage of available ships in the Baltic and the North Sea for the end of June and the beginning of July, adding that more tonnage would likely become available afterwards.
“This rally will only last until early July dates. After that I don’t see the same volume of stems,” said a shipbroker.
“Once the dust settles we will get back into the natural fixing window and ships will reappear,” said a second broker.
Other sources said the tightness of the tonnage in the Baltic and Northwest Europe could mean that rates are actually significantly higher than the w105 mark.
One trading company put a ship on subjects at w145 for a Honningsvaag-UKC voyage, which sources say can be comparable in terms of rates to the Baltic-UKC route.
“W145 is a fantastic number and there are extremely few ships around for June. The first half of the first decade of July is also very tight for tonnage,” said a North Sea shipbroker.
Sources said that, although shipowners positioned in the Mediterranean may be tempted to ballast north to take advantage of the higher rates in that region, this may not be a realistic option.
“Owners are talking of ballasting up to the north but they will be too late. They can’t make it up there for the end-June dates,” said a charterer.