Spot rates fall in Baltic
Aframax spot rates in the Baltic Sea fell further yesterday, down from the 20-month high reached last week.
Oil giant Shell pushed prices even lower on the key Primorsk to Europe route, reportedly fixing Tsakos Energy Navigation"s 2006-built, 117,055 dwt Promitheas on subjects at W180 to load a 100,000 tonne crude cargo in Primorsk for a trip to the UK Continent.
This dragged the Baltic Exchange TD17 rate, on the same route, down 18 Worldscale points overnight to W166, with time charter equivalent earnings dropping to $54,200 per day, down from $64,500 on Tuesday. This was down from $82,000 per day a week ago.
Sentiment had little support from the aframax cross North Sea market either, which despite being described as ?active? by ICAP Shipping saw another low rate dent owners" earnings.
A rate of W110 set by Petrogal on Tuesday was repeated by Irving Oil on Wednesday, when it booked the 2003-built, 106,611 dwt Sea Lady on subjects for a trip from Fredericia to the US Atlantic coast for W110.
This pushed the TD7 route, shipping 80,000 tonne cargoes from Sullom Voe to Wilhelmshaven, down to W110 or $13,810 per day this week, compared to a high of $63,150 a week ago.
Many charterers are booking tankers ahead of the upcoming Easter holidays that will removing two days of trading from the European spot market.