Tanker Market Starts the Year on a Positive Note
The tanker market entered 2021 with renewed optimism, despite estimates of the opposite following 2020 data.
In VLCC market’s latest report, there was hope in the air for the first full trading week of the New Year, with added volumes from OPEC+ and the perception that we were behind the curve on the fixture count.”
“Alas, OPEC did a U-turn and as proceeding got going it transpired that much more had been done quietly under the radar than first thought,” said one expert. Rates have taken a hit in all areas and a continued downward trend is evident.
As for the Suezmax market, a general malaise in the Suezmax market is going to persist until demand picks up towards the end of the year. Hopefully, news surrounding COVID-19 vaccines and developments will help boost the market.
Experts predicts that all Suezmax markets will trade flat or soft for the remainder of the week, with Western markets looking particularly vulnerable to further falls.
In the North Sea and Baltic market, rates continue hovering at bottom levels. Even with delays in some strategic ports we expect rates to move sideways into next week. However, ice formation in the Baltic coupled with a busier shipping season could add some upward pressure.
In the Mediterranean and Black Sea, high cargo numbers unfortunately cannot support a firming trend. The market is expected to continue trending sideways due to regional tensions and poor weather.
