Tanker activity this week has increased compared to the past few weeks in most sectors. Spot rates for VLCC tankers have risen to nearly $500,000 per day, with the global average on major routes estimated at $564,300.
Product Tanker Market Rates
In the product tanker market, contrasting with other sectors this year, average TCE rates for MR tankers are now at a similar level in both the Atlantic and Pacific regions, with global earnings assessed at $86,500 per day. The buying interest across all tanker sectors has remained strong and stable, and we are witnessing asset price stabilization.
Military Developments and Impact on Energy Infrastructure
U.S. officials have warned their regional allies about the possibility of renewed military attacks following the November 3 elections. These developments could lead to lasting damage to energy infrastructure or disruptions in transportation operations, which in turn could reduce the availability of VLCC shipments. A decrease in shipment volumes may counteract the positive impact on vessel availability.
However, a decisive military outcome or a peace agreement that allows for a return to direct and safe voyages could bring additional cargo back to the market and exert downward pressure on freight rates. Nevertheless, both scenarios seem unlikely in the short term.
Positive Movement in the Capesize Market
In the Dry sector, despite a weak start to the week, the Capesize market has shown positive movement, with both regions strengthening, indicating an overall improvement in market sentiment. Brazilian iron ore and Guinean bauxite exports have remained strong, and despite a year-on-year increase in vessel availability in the South Atlantic, demand for older Supramax vessels in the Far East continues clearly.
In the Capesize sector, the vessel CAPE ALLIANCE (with a capacity of 206,190 DWT and built in 2007) was sold for over $30 million. Additionally, in the Supramax sector, the vessels CHARADE and BAHAMAS L were sold for $22.5 million and $22.25 million respectively to unknown buyers and ADNOC customers.
Finally, in the Handysize sector, the vessel CETUS TIGER (with a capacity of 37,059 DWT and built in 2013) was sold for $18.3 million to HTK Shipping, and the vessel ASTRO POLARIS (with a capacity of 37,054 DWT and built in 2014) was sold for $20 million to Greek buyers. Although various negotiations are ongoing, no new tanker sales have been reported this week.
