Watching for rates to firm up.
Dirty Tankers East of Suez Commentary
New York (Platts)--06Sep16/0745 pm EDT/ 2345 GMT
Asian VLCC owner resistance kept rates buoyant Tuesday, with higher fixture rates heard on modern tonnage, sources said. However, overall market sentiment was soft, and sources said it was due to the ample supply of older vessels or those lacking approvals in the market. "I feel that the market is going nowhere as there are still plenty of vessels around, so charterers will be able to keep the pressure on rates," said a broker.
Day Harvest was heard to have placed the Chloe on subjects for a PG-China voyage, loading September 21-23, at w34 basis 270,000 mt. KPC was heard to have taken the Olympic Lion on subjects for a replacement job for a PG-China voyage, loading September 14-15, at w35.5 basis 270,000 mt. The key VLCC PG-Japan was assessed up w1 day on day at w34.5 basis 265,000 mt.
Demand for PG-West voyages on Suezmax tankers saw fixture rates edge up Tuesday, sources said. CSSSA was heard to have placed the Maran Penelope on subjects for a PG-UKC voyage at w38.25 basis 140,000 mt. The Suezmax PG-East rate was assessed flat day on day at w57.5 basis 130,000 mt Tuesday.
The Aframax segment saw an uptick in demand for the Indonesia and North Asian regions, with five uncovered cargoes heard for loading in the last decade of September. Few fresh fixtures were heard on the day. Sources said Chevron placed the Desh Garima on subjects for a PG-New Zealand voyage, loading September 23-25, at w55 basis 90,000 mt. The key Indonesia-Japan voyage was assessed flat day on day at w62.5 basis 80,000 mt and the Aframax PG-East rate assessed flat at w62.5 basis 80,000 mt.
Sentiment in the Asian MR tankers segment was heard soft on muted activity. The MR Singapore-Japan rate was assessed down $10,000 day on day at $490,000 Tuesday.
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