Desperate VLCC owners piled in for a Brazilian cargo last week before spot rates crashed.
Broker BRS Group reported a “torrid week” for shipping companies in the main Middle East market, with the sharp rally in rates from the previous week coming to a rapid end.
Charterers succeeded in quashing the bullish sentiment and rates tumbled, the company added.
Sentiment crumbled in secondary markets too, with West Africa weaker.
And a tender for a single cargo loading in Brazil drew 12 offers from owners on Tuesday.
“The longer voyage started to hold more appeal with owners and the little demand that was present gathered plenty of attention,” BRS said.
Tankers International reported Euronav winning the battle, with its 299,421-dwt Antigone (built 2015) chartered to Petrobras at a strong $114,972 per day on Tuesday for a late-March voyage to China, before levels plunged.
“Despite there being few western ballasters, rates in the Atlantic tumbled with each successive fixture,” the broker added.
BRS said it was overall a quiet week, with fixtures for the first 10 days of March lagging the usual level.
West Africa to China rates slipped from the high Worldscale (WS) 80s to WS 69, down 35% to $44,400 per day.
Nine-month highs disappear
Earnings from the Middle East Gulf to China slumped from WS 92.5 to WS 67, or $40,700 per day, down 45% in a week.
VLCC rates hit a nine-month high earlier last week, but the heat came out of the market quickly.
UK broker Clarksons’ fleet-weighted average crashed more than $20,000 to finish the week at $54,400 per day, roughly where it was two weeks ago.
On Friday, a single fixture was listed: the 299,995-dwt Zakum (built 2019) for $33,296 per day to Indian Oil Corp for a mid-March voyage from the Middle East Gulf to the east coast of India.
Fearnley Securities said the freight market continues to be pressured, with earnings dropping another 4% on Monday.
Howe Robinson Partners said: “Focus is likely to shift towards the second decade in the Middle East Gulf this week.”
“That said, charterers do not feel much pressure to move to keep pressure on the rates. Lack of real interest from the US Gulf is not helping the market from the owners’ perspective,” the London shop added.
