August has so far seen two VLCCs fixed in the spot market to export US crude to Singapore – the first time two such vessels have been booked for the trip in the same month, according to brokers’ reports.
Gener8 Maritime’s GenMar Zeus (318,300 dwt, built 2010) was today reported fixed on subs to ST Shipping, part of Glencore, at an unreported rate. The VLCC will load crude between September 8 and 10 for a voyage from the US Gulf to Singapore.
Navios Maritime Acquisition’s Nave Electron (305,200 dwt, built 2002) was reported fully fixed to ST Shipping on August 9 for the same voyage at a lump-sum rate of $2.75m, loading between August 27 and 31.
“This year has seen a regular sort of trade developing, with a VLCC from the VL8 Pool fixed in the spot market around once every two months for the US Gulf to Singapore run,” London-based shipbroker Alibra Shipping said in its weekly market report today.
Alibra attributed August’s double-VLCC fixture to a generally weak tanker rates and decreased exports from West Africa, which is experiencing supply outages caused by disruptions and stiff competition from other exporters.
“The lump sum paid for Nave Electron this month pales in comparison to a failed deal reported in early March, for which $4.85m had been mooted for the US Gulf-Singapore voyage,” the shipbroker noted.
A VLCC was fixed on the US Gulf to Singapore run in June for $3.7m and another in March this year for an unreported rate.
Meanwhile, the price of WTI crude has also made US exports more attractive in comparison to Brent contracts. WTI is currently trading at $48.28/bbl, while Brent is trading 5.1% higher at $50.73/bbl at the time of writing.
Earlier this week, Reuters reported that Vitol and Astra Oil had both booked suezmax tankers to export US crude to the UK/Mediterranean on the back of the widening price arbitrage.
