Ton Mile Trader

Crude
VLCC Ag/East 50  ($33k)  about same
SM Wafr/Usac 60  ($17k)  softer

V rates remain about the same on moderate fixing activity. We now have 52 fixtures in the books, with a position list that should be able to handle the next few weeks without much problem. Limited activity for Wafr SMs have reduced rate expectations a point or two. OPEC compliance is now down to about 72% - which comes as no surprise. If prices continue to rise, while they continue to increase production, it is safe to say they will continue to continue pumping more. I know I would. Rising bunkers are becoming a factor in the face of flat/falling Worldscale rates.

Crude FFAs have again been slow. TD3 July bid/ask implies a price of about 47, in line with yesterdays close – though a few points below spot. The Q4 trades down 1 point to 45.

Clean
37kt Cont/ta   105  ($7k)   about same, possibly softer for today
38kt Cribs/up  80  ($1.5k)  about same
55kt Ag/East  95  ($13k)   about same

Activity off the Cont has slowed and rates appear to have peaked for the time being. The Bald Viking of Southport tells us that MRs have been put on subs for loading of diesel off the USAC – though it appears the matter is a tad overdone – as there is likely only one, maybe two – cgos to actually get lifted. Also worth noting is the expected demand for mogas into Nigeria at some point next week. This has lifted sentiment – as can be seen in regional FFA pricing.

We are seeing very good activity on clean FFAs. TC2 July trades up 6 points on the July contract to 108 – apparently on the back of potential mogas demand into Nigeria in the near future. Not-so-little-known TC6 trades flat in Q4 at 123. In the East, prices are down. TC4 July and Aug lose a few points each to 84 and 91, while TC5 July and Aug lose 4-5 points each to 94 and 98.