It was another solid week for chartering of oil, despite the fact that the VLCC and Aframax rates fell back a bit. At the moment, there is a good activity in the market and a blooming optimism for the future that has revealed rising prices for both vessels and leases in recent weeks.
Despite that no contracts over $17.000 are signed, brokers continued to adjust prices last week. With a quick review of the reports, we see that the rates, that some operate with, approaches $18,000 for 12-month contracts.
Aframax 12 months charter rate: $17.000 per day
Average rate in the spot market : $24.000 per day
Baltic Dry Index fell last week with 21,3% and closed at 1.147 points. The rates for Panamax fell 2,3% to $11.975 per day. The massive downturn the last weeks have been surprisingly large, especially Capesize fell more than expected. This has led to a downward revision of the expectations for the fourth quarter of the year. Having said that, we have seen a very stable Panamax / Kamsarmax market.
We expect the rates to increase and we see positive signals in the rental market. Contracts for 5 months on 2x Kamsarmax was signed last week. The rates were $14.500 and $15.250 respectively.
Capesize 12 months charter rate: $17.500 per day
Panamax 12 months charter rate: $13.500 per day
Last week’s transactions in the secondary market prove an increasing willingness to pay amongst buyers of both tankers and dry bulk carriers.
In the tanker market, a transaction was completed in which the 2004 HS Tosca model was traded for $13.5 million, almost 9% more than the previous transaction of smaller vessels.
This ship will also carry out its <<special survey>> within a few months. The price represents an increase of 17% from the last transaction in the second quarter.
In the Kamsarmax segment, a 2017 model was traded for $30 million and this also represents an increase from last weeks transaction, of 3,5%.