Aframax freight rates in the Americas drop

Aframax Tanker

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.

“The Seaqueen was running late and Chevron had four offers on the cargo,” a shipbroker said. “One of the initial offers was for w115 and they got w112.5.”

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.

“There is a good amount of tonnage and inquiry is on the quiet side,” 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.

 
Source: Platts

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