

Tanker Market
68
OPEC Monthly Oil Market Report – June 2016
Table 7.2: Spot tanker crude freight rates, Worldscale
Aframax
In May, Aframax was the only vessel size in the dirty tanker segment, which showed
enhanced rates, on average, from a month before. Aframax freight rates increased by
6%, as a result of mixed performance for the class, supported by increased rates for
tankers trading in both directions of the Mediterranean.
The markets in the North Sea and Mediterranean were balanced at the beginning of
the month before some replacement deals were fixed at high premiums. A lighter
tonnage list in the Mediterranean, combined with a sudden shortage of vessels, pushed
rates up in that region. Freight rates for tankers operating on the Mediterranean-to-
Mediterranean and Mediterranean-to-NWE routes edged up by 25% and 34% to
average WS116 and WS109 points, respectively, making Suezmax a viable alternative
to Aframax at a certain point, due to its falling rates and weak market.
Spot freight rates went down on the Caribbean-to-US East Coast (USEC) route by 4%
from the previous month, despite owners’ consistent resistance to lower rates, as
tonnage supply outweighed chartering requirements.
Aframax freight rates to eastern destinations were not an exception, dropping by 18%
for tankers trading on the Indonesia-to-East route to average WS91 points.
Clean spot freight rates
Clean tanker market sentiment was weak in May. On average, clean spot tanker freight
rates dropped by 11% from the month before to stand at WS125 points.
In the West of Suez, freight rates experienced a large drop on average. Tonnage in the
West was affected by the holidays and slow movement in the market. Among the main
drivers behind freight rate drops in the West was lower freight rates in the
Mediterranean, where they dropped by 23% and 22%, respectively, on the
Mediterranean-to-Mediterranean and Mediterranean-to-NWE routes. Nevertheless,
rates for medium-range tankers operating on the NWE-to-US East Coast went up by
7% to average WS119 points as the market was balanced, showing a multi-month
high, though the increase remained limited.
Size
Change
1,000 DWT
Mar 16 Apr 16 May 16 May 16/Apr 16
Crude
Middle East/East
230-280
73
65
63
-2
Middle East/West
270-285
41
43
38
-5
West Africa/East
260
72
67
62
-6
West Africa/US Gulf Coast
130-135
70
79
63
-17
Northwest Europe/US Gulf Coast
130-135
63
69
63
-6
Indonesia/East
80-85
147
111
91
-20
Caribbean/US East Coast
80-85
115
109
104
-5
Mediterranean/Mediterranean
80-85
106
87
109
22
Mediterranean/Northwest Europe
80-85
98
80
108
28
Sources: Argus Media and OPEC Secretariat.