The rates in the transatlantic clean tanker market weakened on Wednesday on a heavy buildup of vessels in Europe, ship brokers said. The market outlook was also bleak in the near term as the vessel supply continued to outweigh the strong flow of cargoes to the United States.
The rates for 37,000-tonne capacity tankers for the transatlantic voyages were pegged at W215, down from W235 done in the previous week. "The rates in the transatlantic market should soften, with the vessels piling up slowly in the past month," a ship broker said.
Although the United States maintained a strong inflow from Europe in the past two months, the reverse flow of diesel cargoes to Europe was also surprisingly strong.
Gasoline imports into the United States for the week ended September 29 was pegged at 1.114 million barrels per day, down from 1.459 million bpd in the previous week. The import flow was unexpectedly robust, following the end of the peak demand season in summer.
Eland was booked by BP at W215 to load on October 10-12 for delivery to the US Atlantic Coast. In the Caribbean market, rates for 38,000-tonne capacity tankers sailing to the US Gulf Coast were pegged at about W200, down from W215 seen one week ago.
Nomad was fixed by Citgo at W200 for October 13-15 loading. Unlike the bearish transatlantic market, the Caribbean market was expected to be stable this week due to a moderate vessel demand. This could lead to the transatlantic rates falling to parity with the Carribbean quotes.