Aframax freight rates in the Americas continued their October swoon.
On the first of the month, the Caribbean-US Gulf Coast route basis 70,000 mt was assessed at Worldscale 122.5. Since then, rates have steadily fallen to w110, an overall drop of w12.5 in just three business days.
A trio of fixtures illustrated the most recent portion of the decline.
Chevron originally booked the Seaqueen at w117.5 for an East Coast Mexico-USGC voyage with an October 12 loading. But, when it became apparent the ship was not going to make the requirement, Chevron sought a replacement.
â€œThe Seaqueen was running late and Chevron had four offers on the cargo,â€ a shipbroker said. â€œOne of the initial offers was for w115 and they got w112.5.â€
The replacement was the Lillesand, which was plugged into the fixture at w112.5.
A short time later, however, freight rates came off even further when Citgo put the V8 Stealth on subjects at w110 for a Caribbean-USGC journey with an October 11 lifting.
A combination of a lengthy position list and a slack market have contributed to the decline, sources said.
â€œThere is a good amount of tonnage and inquiry is on the quiet side,â€ another shipbroker said.
The Aframax position list shows 16 ships scheduled to open in the Caribbean or Gulf of Mexico through mid-month. One cargo was heard working Tuesday.