Three VLCC fixtures to lift Forties crude from Hound Point, Scotland, in recent days could hit Aframax freight rates in the North Sea in coming weeks, shipbrokers said Friday.
The Al Kout, the Front Page, and the Voyager I were all reported on subjects either Thursday or Friday for first decade of December loading.
Each VLCC loading takes away at least three potential Aframax stems, and sources said there were few cargoes left for Aframaxes to transport from Hound Point in the third decade of November or the first decade of December.
"The VLCCs are covering so many of the Hound Point stems at the moment. They have taken a load of early December stems. The VLCCs are killing the Aframaxes in the North Sea right now," an Aframax shipbroker said.
In addition to the VLCC fixtures, Suezmaxes -- which normally transport around one million barrels of oil -- have reportedly been fixed from Hound Point and Tees in late November to lift Forties and Ekofisk, respectively.
Mercuria was heard to have fixed the Almi Sky Suezmax to take a 130,000 mt cargo from Tees to Uruguay on November 30 following the award of an ANCAP tender to the trader earlier in the month.
The two Suezmax fixtures have also contributed to the lower demand for Aframaxes.
"There has been very little inquiry for Aframaxes in the North Sea in the last week or so. It has been so quiet," a second Aframax shipbroker said.
As the Baltic and North Sea Aframax markets often use the same general pool of tonnage, the fortunes of the two markets are linked.
So, while it has been a busy period for crude loadings at the Baltic ports of Primorsk and Ust-Luga, the lack of accompanying North Sea business has kept freight rates in both regions in check.
The Baltic-UK Continent and cross-UKC Aframax routes were both assessed unchanged at Worldscale 102.5 and w115, respectively, Thursday. As well as low North Sea inquiry, relatively benign weather in the Baltic and North Sea have also prevented rises in freight rates.
"There has been no dire situation that has required the charterers to pay up. The tonnage list is not exactly anaemic and we have not had any major weather issues that have caused ships to get cancelled and need to be replaced," said the second broker.
