The tanker market fell last week, we saw a decrease of approximately (+/-) 25% in all major tankers.
The market was driven by a temporary high supply of available tonnage that gave the charterers the opportunity to push the price down. We note that a significant number of vessels were closed at the end of last week, which will mean that access to ships this week will be more limited and we therefore expect the rates to increase. We are now in the strongest part of the year and expect significantly stronger rates in the time to come. We know that solid one, two and three-year contracts are signed, confirming the underlying sentiment of a good tanker market. We also notice that the ships today look underpriced, given the historical correlation they have with one-year lease contracts.
Aframax – 12 month lease: $ 27,250
Aframax – Average spot market rate: $ 21,536
We saw a slight weakening of the rates last week. Panamax fell back about 12% and had an average rate of $ 12,812. The Capesize segment saw a cut rate of $ 17,273. We notice that the dry cargo market has sailed into rough seas. We saw that both segments were characterized by less demand due to lack of cargo, this was seen in both the Atlantic and the Pacific. We still expect us to rise from the levels we are currently watching. We know that harvesting of agricultural products from the southern hemisphere is now underway, so we expect an increased influx of raw materials that need shipping that will be reflected in the rates.
Capesize 12 month lease: $ 19,250
Panamax 12 month lease: $ 11,875
S & P
A 2002 built Aframax (Imabari SB Saijo) of 107,144 dwt changed hands to the net sum of $ 14.2m. This is a very strong transaction, and confirms expectations of significantly stronger earnings in the years to come. There was also a 2007 built VLCC (Daewoo) of 306,489 dwt for $ 41.5m. We noticed that it was initially a $ 38m transaction, but that the transaction did not materialize and that the ship is now sold at a premium, which also underpins the strong tanker market.
A 2008 built Panamax (Imabari SB Marugame) of 76,302dwt went for $ 12.75m. The transaction has been noticeably stronger than similar transactions lately.