Tank
The development of the freight market over the past few weeks has been long awaited by owners, but it remains very constraining for several of the lessees who are yet to meet their long-term vessel needs. It is mentioned that Shell, which normally has more than 150 ships under long-term contract, has only 30 ships left.
They aren’t the only tenants hoping rates stay low for longer. We have therefore seen a change in recent weeks, in which companies have actively approached shipowners with the aim of tying up contracted vessels. We therefore expect long-term contract prices to rise as spot rates rise.
Last week, the average rate has risen again in the spot market and brokers are now increasing the estimate of future profits.
Greek shipping broker Allied Shipping raised its price estimate by 12% last month to $16,000 per day, for 12-month subcontracts for Aframax. If the spot market maintains its current levels, these are likely to rise further
Aframax rental rate for 12 months: $16,000 per day
Average spot market rate: $33,600 per day
Dry Bulk
The Baltic Dry Index lost 3.6% last week and closed at 1.519 points. Rates for Panamax fell 10.8% to $12,682 per day. We are now in a period of historical calm, where development usually turns, closer to December. While we don’t expect a significant rate cut going forward, demand appears to be buffering against the downturn. The increased rates for Capesize are also helping to keep the rates for smaller vessels at acceptable levels.
Capesize rental rate for 12 months: $21,500 per day
12-month Panamax rental rate: $13,500 per day
S&P
A number of deals have been reported in the tanker market, with VLCC and MR vessels attracting a lot of interest.
In the dry bulk market, a number of Capesize and Panamax vessels have been traded. A 2010 Japanese-built Kamsarmax was also traded for $19.5 million.
Capesize rental rate for 12 months: $21,500 per day
12-month Panamax rental rate: $13,500 per day
