Last week saw a distinct lack of activity for Aframaxes in the Baltic Sea, ultimately ending with a sharp downturn in Baltic-UK Continent 100,000 mt rates, Platts reports.
Platts says that the rates on the route plunged Worldscale 25 to be assessed at w65 Friday, which equates to USD 6.10/mt, the lowest level since an identical assessment on August 4.
Vitol was heard to have put the Phoenix Beacon on subjects at Worldscale 65 for a Primorsk-UKC voyage loading September 6. According to Platts, the charterer was not available for comment.
According to sources, the lack of spot fixtures during the week had created a lengthy tonnage list weighted heavily in favor of the charterers. According to Platts data, there were just two spot Baltic Aframax fixtures during the week.
“Every day we didn’t have a fixture the tonnage continued to build and build, the rates were always going to come off,” said a shipbroker to Platts.
The number of ships available in the Baltic and North Sea regions was said to be the key reason for the dropping rates. “ It’s difficult to make an argument for anything other than w65 for Baltic-UKC. There are 13 ships opening in the Baltic that can make it to Primorsk by September 13,” another shipbroker disclosed to Platts.
Source: Platts