Unusual strengthening in the US Aframax tanker market has compelled more crude oil shippers to use larger Suezmax vessels in recent weeks, according to shipping sources. There have been at least nine vessels placed on subjects on the voyage charter market over the past two weeks making the trans-Atlantic voyage from the USGC to Europe, six Suezmaxes and four Aframaxes, according to S&P Global Platts data. Aframaxes are typically used to carry crude across the Atlantic to Europe; however, recent strength in the smaller ship class has prompted charterers to take Suezmaxes vessels on the journey, sources close to the shipping markets have said. Platts assessed the cost of carrying 70,000 mt of crude on a Aframax vessel from the US Gulf Coast to the UK Continent at $17.03/mt Monday. Freight for Suezmax voyages carrying 145,000 from the USGC to the UKC last traded at Worldscale 65, when Oxy placed the Front Crystal on subjects loading at Corpus Christi. Applying a flat freight of $15.48/mt, as is the base for Platts Aframax assessments on that route, w65 on that route is the equivalent of $10.06/mt. Aframaxes have held a $6.97/mt premium over Suezmaxes for the journey; however, the smaller vessel… continue reading
Continue reading In the LOOP: Larger Suezmaxes making more trips from USGC to Europe on rising Aframax rates. This article appeared first on CTRM Center.
Source: CTRM Center