We witnessed a good week in the tanker market, especially for the big vessels. The average rate for Aframax declined some, as the rates in the mediterranean decreased slightly. Generally, there was a solid demand that kept the rates far above break-even.

The solid earnings have led to ship brokers recently upgrading the values of the vessels, which gives the shipowners better equity to reinvest in the sector.

This can quickly become a ketchup-effect as 2020 gets closer.

Aframax – 12 months charter rate: $19.000 per day

Aframax – Average rate in the spot market: $26.443 per day


Dry Bulk

Baltic Dry Index decreased last week with 4,9%and closed at 1.112 points. The rates for Panamax decreased 10,4% to $8.190 per day. The rate decrease continued for Panamax, despite an improvement in supply and demand. This development was not expected but with a tighter market ( as we saw in the beginning of last week )this development could turn soon. The long-term outlook remains unchanged.

Capesize 12 months charter rate: $18.750 per day

Panamax 12 months charter rate: $12.000 per day



The year´s first transaction in the Aframax class was not surprisingly in the older segment. A 2002 model of 106,000 dwt was traded for $11.5 million. This is, as expected, somewhat higher than the previous transactions and confirms once again that the prices, especially on older vessels, are rising.

In the dry cargo sector, the recent declining rates have affected activity in the secondary market and this is a somewhat wait-and-see mood. The owners do not seem willing to let the short-term trend affect the valuation of the ships, and the transactions therefore wait. We think this is a good thing and therefore expects increased activity in line with rising rates.