Cross-Mediterranean dirty Aframax freight rates on the rise as inquiries roll in

2014-10-16

The cost of transporting 80,000 mt crude cargoes on the Cross Mediterranean route has been rising amid strong levels of inquiry from charterers and a tight position list, shipping sources said Wednesday.

Rates on the Cross-Mediterranean route was assessed Worldscale 10 higher at w105 Tuesday, Platts data showed. That equated to $6.87/mt, the highest since $7.03/mt on August 27.

Total was heard to have put the Aegean Myth on subs at w105 for a Sidi Kerir-UKCM run loading October 26, while Petrogal was heard to have booked the Azerbaijan at w107.5 for a shorter Algeria-Portugal voyage with an October 23 loading date.

Rates may rise further in coming days, given several cargoes are outstanding, sources said. There were said to be at least four spot cargoes in the Black Sea and Mediterranean regions to be covered.

Adding to the firm sentiment have been delays in some areas. “Some operations at Trieste port in Italy are closed for maintenance until October 18, so that limits the amount of ships that can berth. We should see a backlog of ships begin to build up there,” a shipbroker said.

Also, according to a shipping agency report, the Bosporus Strait was closed to tanker traffic briefly Wednesday morning because of heavy fog.

Delays in the Turkish Straits typically increase in the winter months, supporting freight rates in the Black Sea and Mediterranean regions because ships are taken out of position by the delays.

Source from : Platts

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