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Middle East large tanker market activity fails to move rates 

 
London, Oct 17: A flurry of activity midweek in the main Middle East large tanker markets failed to move rates from their moribund levels, shipping brokers said last week.

But with November cargoes becoming available next week, some brokers s aid some firming of freight levels could be expected.

Others, though, said that any rate movement would be limited by the large numbers of vessels, including modern ships, likely to be available over the next two months.

Eastbound VLCC rates slid slowly backwards through the week with Japan falling toward W50 from W52.5 and Korea below the 50 point mark.Older vessels, particularly to China were being fixed at a further five point discount.

Despite a lack of activity west bound rates for the Continent firmed very slightly to around W48, while those to the US Gulf held steady at W47.5 before beginning to tail off at the end of the week.

Mediterranean million barrel trading burst into life midweek on a shortage of prompt vessels, after a very quietstart.

Suezmax rates briefly sparkled, shooting up to W90 and beyond for some short voyages, from a previous W80, but then slipped back toward the mid 80s by the end of the week.

Meanwhile Aframax cross Mediterranean rates lost their shine of the previous two weeks and fell a further five points toward W80.

Brokers said charterers were switching between vessel types as rates rose.The North Sea remained flat with modern 80,000 tonne units taking a two and a half point premium above the benchmark W80 and older ships the same level of discount for the Continent.

Transatlantic shipments from the North Sea were rated at W90/95 for the US Gulf/USAC Aframaxes and W80 for Suezmaxes.

West Africa Suezmax rates maintained W75 for modern ships to the US Eastbound, they veered between W62.5 for an old ship to China and W77 for a new vessel to Taiwan.

Five VLCC fixtures were reported from West Africa, but rates softened to W38.5 from W40 Eastbound.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.

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