D:10 Freight charges continued to enhance in March, with modest features seen on most routes monitored. VLCCs noticed the sharpest development, up 45% on the Center East-East route, as new purchases from China boosted charges. Suezmax spot freight charges remained robust, with charges up one other 20% on the US Gulf Coast (USGC) to Europe route. Aframax charges bounced again from final month’s decline, with spot freight charges on home routes up 23%. Within the clear tanker market, West of Suez costs rose 29%, supported by highs within the Mediterranean. East of Suez costs fell by a median of 10% amid decrease demand for winter produce within the Far East.
Spot fixtures
The most recent estimates present that international spot provides continued to get better in March, averaging 16.49 mb/d. Fixtures elevated by about 0.9 mb/d, or about 5%, pushed by acquisitions outdoors the Center East. In comparison with the earlier yr, spot units elevated by 1.2 mb/day or about 8%.
OPEC spot charges have been largely unchanged in March, averaging 11.19 million per day. This represents a marginal improve in MOM of about 40 tb/d or nicely under 1%. In comparison with the identical month in 2022, units have been 1.1 MB/day or about 11% larger. Center East-East routings fell 0.2 mb/d, or about 3%, to a median of 6.5 mb/d. In comparison with the identical month final yr, the flows from the Center East to the east elevated by 0.8 million per day or by greater than 14%. Native rigs on the Center East-West route additionally declined in March, falling 60 tb/d, or about 5%, to a median of about 1.3 mb/d. Annual rates of interest elevated by 0.2 million/day or nearly 14%. Fixtures outdoors the Center East rose 9% to a median of three.4 mb/d. In comparison with the identical month final yr, the route’s visitors was 0.2 mb/d or about 5% larger.
Departures and arrivals
OPEC crudes rose in March to a median of 24.1 million per day. It is a maternal improve of about 0.5 mb/day or simply over 2%. Annual OPEC crudes are rising by about 1 billion/day or greater than 4%.
Cruising within the Center East averaged 17.8 mb/d in March, a slight improve. On an annual foundation, sailings from the area elevated by 0.3 mb/d or about 2%. Crude oil imports rose considerably within the Far East and Europe, with smaller will increase in North America and West Asia. Far East arrivals posted the largest features, rising 2.0 mb/d or 13% to common 17.6 mb/d. Yr-over-year, arrivals to the Far East have been 2.3 mb/d or 15% larger. West Asia arrivals rose by about 0.1 mb/d or 1% to common 9.3 mb/d. On an annual foundation, the variety of arrivals to the area elevated by 0.9 million/day or about 11%. Europe arrivals elevated by 1.3 mb/d or nearly 12% for my mother to a median of 13.0 mb/d. European arrivals have been down 0.1 million mb/d or lower than 1% year-over-year. Arrivals in North America averaged just below 9 mb/d, up barely from final month and up 0.2 mb/d, or about 3%, on the yr.
Soiled Tanker Freight Charges
VLCC spot charges for very giant crude carriers (VLCCs) accelerated in March, rising 43% on common. VLCC charges have elevated by a median of 108% year-on-year. VLCC markets benefited from a return to Chinese language shopping for of longer haul merchandise. Fares on the Center East-East route improve by 45% to a median of WS87 factors. This was up 98% year-on-year. Fares on the Center East-West route elevated by 38% to common WS58 factors. Annual route costs have elevated by 152%. West Africa eastbound charges rose 41% in March to common WS86 factors. In comparison with the identical month of the earlier yr, the indications are 95% larger.
Suezmax
Suezmax charges noticed an additional restoration in March, rising 17% mother, supporting continued commerce strikes. Charges have been 57% larger year-over-year as Suezmax charges benefited from ongoing commerce circulate changes that boosted demand per tonnage mile. Spot freight charges on the West Africa-USGC route bounced again from final month’s decline, rising 14% to common WS128 models. Annual figures have been 56% larger. Costs on the USGC-Europe route continued to maneuver larger, rising 20% to common WS120 factors. In comparison with the identical month final yr, they’re 56% extra.
Aframax
Aframax spot freight costs have recovered from final month’s decline, averaging a 32% improve in March. In comparison with the identical month of the earlier yr, the indications have been larger by 57%. All monitored routes noticed features, apart from the Indonesia-East route, which seemed to be in decline after robust declines within the earlier two months. Common rates of interest have been WS187 in March, unchanged from the earlier month. In comparison with the identical month of the earlier yr, the indications have been 40% larger.
In distinction, spot charges on the Caribbean to US East Coast (USEC) route have been sharply larger, up 81% to a median WS346 unit. Annual figures have been 107% larger. Cross-Med spot freight charges noticed a extra reasonable improve of 23% mother to common WS222 factors. They have been up 38% year-on-year. Charges on the Mediterranean to North West Europe (NWE) route noticed the same improve of 23% father or mother to common WS200 factors. In comparison with the identical month of the earlier yr, they elevated by round 37%.
Clear Tanker Freight Charges
Spot freight charges improved on common as robust features west of Suez outweighed losses east. On common, charges rose 14% and 17% larger than March 2022 ranges.
Fares on the Center East-East route rose 11% in March to a median of WS189. Annual rates of interest elevated by solely 2%. In distinction, internet spot freight charges on the Singapore-East route fell 24% to a median of WS186 and have been down 11% year-on-year. Spot freight charges on the NWE-USEC route elevated 8% to common WS227 models in March.
They have been up 23% year-on-year. Costs on the Cross-Med route rose 39% to common WS320 factors, whereas costs on the Med-to-NWE route rose 37% to common WS330 factors. Costs on Med routes have been each up 33% in comparison with the identical month final yr. Internet charges proceed to assist shifts in commerce flows, with Europe bringing in larger volumes from the Center East, Asia and the US, whereas Russian product flows are more and more shifting to Asia and the Center East.
Nikos Rusanoglu, Hellenic Transport Information Worldwide
