Crude oil freight rate shocks rise, refined oil freight rates generally decline


Weekly Report on China's Foreign Trade Import Tanker Transportation Market (2017.11.10)

Some time ago, contradictory news about OPEC's frozen production caused international oil prices to jump up and down. Oil prices were largely stable this week, with Brent crude in stock trading at $45.79 a barrel on Thursday, down 1.2 per cent from Thursday. The global crude oil transportation market was volatile, with Asian freight rates falling slightly and European freight rate vibrations rising and driving up the overall level. China's import VLCC freight rates fluctuate slightly. On November 10, China's crude oil import composite index (CTFI) released by the Shanghai Shipping Exchange was 977.90 points, down 0.4 percent from last Thursday.

Very large tankers (VLCC): The transport market was relatively stable this week, with slight fluctuations in freight rates. Affected by the sharp increase in market inquiries in the previous period, the situation of short-term capacity supply exceeding demand has improved significantly, and freight rates have risen to a high point during the year. However, due to the current capacity supply is more stable, shipowners are less willing to reduce prices, this week the transport market showed a narrow range of volatility pattern. West Africa route turnover is stable. On Thursday, the 265000-ton freight rate (CT1) from Rastanula to Ningbo in the Middle East Gulf was reported to be WS65.73, up 0.3 from last Thursday. The average 5-day freight rate of CT1 was WS66.79, up 7.3 from the previous month, and the equivalent term charter rent (TCE) averaged US $43000/day. West Africa's Malonger/Geno to Ningbo 260000-ton freight rate (CT2) reported WS66.66.04 2.4, down 1.2, up to WS680 on average, TCE averages $48000/day.

Suez tankers (Suezmax): Transport market freight rates first stabilized and then rose. West Africa to Europe and the United States freight rate basically remained below WS60, on Thursday to WS70(TCE about $20000/day). The Black Sea to Mediterranean freight rate rose to WS77(TCE about $17000/day). The range of freight rates from the Persian Gulf to the Mediterranean is expanded from WS45 to WS67. A 140000-ton ship, Iran to Turkey, November 27 pallet, transaction rate WS62.5. The Persian Gulf to India freight rate remained WS70 to WS80, and 90000 tons of pallets were sold. South American routes have already entered in early December, with positive transactions and freight rates slightly below last week's level. A 130000-ton ship, Brazil to Asia, December 1 pallet, transaction rate WS62.5. China's main source of imports is Singapore. A 130000-ton ship on this route was sold in mid-November at a freight rate of WS77.5.

Afra Tanker (Aframax): Freight rates in the transport market are mixed. The Mediterranean and Black Sea pallets were traded centrally, supporting a rebound at the bottom of European short-haul routes. The trans-Mediterranean freight rate, which remained below WS80 (TCE is about US $4000/day), jumped to WS130 level (TCE is about US $30000/day) on Thursday. North Sea short-range and Baltic Sea short-range freight rates exceeded WS120 and WS100 respectively, with TCE of about US $41000/day and US $33000/day. Freight rates from the Caribbean to the Gulf of America have retreated from WS140 to WS120 (TCE about $21000/day). Freight rates from the Persian Gulf to Singapore and from Southeast Asia to Australia continued to decline, at WS85(TCE of about $10000/day) and WS77(TCE of less than $10000/day), respectively. China's imports mainly come from Kozmino, with more concentrated trading in late November.

International Product Tankers (Product): Freight rates have generally declined in the shipping market this week. The naphtha freight rates of 75000-ton and 55000-ton ships on the Persian Gulf to Japan route decreased to WS72 and WS74(TCE about $5800/day and $6100/day), respectively. The freight rate of 35000-ton ships from India to Japan decreased slightly to WS93(TCE about $4300/day). On China's fuel oil import route, 80000 tons of Singapore's mid-November cargo was sold at WS82.5. The 40000-ton Nakhodka was also sold in mid-November. The freight rate of 38000-ton ships in Europe and the United States has dropped significantly. The freight rate of-ton ships from US Bay to Europe has dropped from WS110 (TCE is about US $9400/day) to WS75(TCE is about US $3100/day). The freight rate of 37000-ton European-US East gasoline dropped from WS116(TCE is about US $9900/day) to WS100(TCE is about US $7200/day).