The spot market experienced a very quiet week at the end of July / August.

The reason that the driving season has been waiting for this year is because the refineries have extended their maintenance period longer than expected due to the expected increased activity from the summer onwards where they have to produce up to full capacity to prepare for IMO2020. As a result, earnings are expected to increase sharply in the future when refineries return to full capacity while at the same time some ships are leaving the market for shorter periods in connection with the installation of scrubbers.

Furthermore, 12 months. The on-site T / C contracts are resting and this shows us that the underlying expectations in the market are not significantly affected by the quiet spot market.

Aframax – 12 month lease: $ 21,625 per day
Aframax – Average spot market rate: $ 8,074 per day

Dry Bulk
Dry cargo still has the good trend we saw before the holidays. Earnings in the market today are very solid, which we have expected and expected as a result of the market being exposed to two extraordinary events earlier this year.

The spot market for Capesize delivered $ 29,285 in week 29, $ 23,632 in week 30 and $ 21,782 in week 31 while for Panamax the spot market gave an average of $ 17,883, $ 16,732 and $ 14,128 for the respective weeks. Going forward, we expect demand for iron ore in China to increase as China was forced to cut its inventories when Australia and Brazil were forced to reduce exports earlier this year. This could mean that more Capesize ships will be brought in to the Brazil-China and Australia-China routes, leaving other routes for Kamsarmax and Panamax. At the same time, some ships have planned installation of scrubber systems during the autumn, which will reduce the supply side and push rates further upwards. In other words, the dry cargo market looks very exciting going forward.

Capesize 12 month lease: $ 20,750 per day
Panamax 12 month lease: $ 13,500 per day

S & P

No transactions of interest
But over the past 3 months, indicative prices have risen by 7% for Aframax ships, which is a very positive sign.

At the beginning of August, a Kamsarmax of 82,849 dwt (2005) went to $ 11.5 M USD to Greek stakeholders. At the end of July we saw a transaction for a Kamsarmax of 83,684 dwt (2008) to $ 14.5 M USD. In general, we see activity in the secondary market picking up and we expect things to happen this fall.