Baltic-NWE Aframax freight rates rise to highest in 2 years: sources

Spot freight rates for Aframaxes on a Baltic to Northwest Europe route have risen to the highest level assessed since 2011 on a glut of "ice cargoes" being fixed on the market, sources said Friday.
Activity on the Baltic-NWE Aframax market has increased throughout the week, with several vessels passing subjects at progressively higher rates, sources said.
Baltic-NWE Aframaxes were assessed at Thursday's close at Worldscale 130 or $12.26/mt for a 100,000 mt basis, up by w20 from the previous day, Platts data shows.
According to Platts data, this is the highest rate on this route since March 23, 2011, when they were assessed at w178 or $13.97/mt.
Sources reported that there were around four or five fresh uncovered cargoes on the market for laycans around April 15-20.
Also sources reported that Baltic Aframaxes had been placed on subjects earlier in the week with options to discharge in the Mediterranean at a premium, taking them away from NWE where they usually operate.
"Ice class ships are asking a premium to discharge Med as the longer voyage brings them further from their natural loading area," said a Med-based shipbroker. "But then this effect will vanish as soon as the ice season is over and a longer voyage will dictate a discount rather than a premium by then."
Recent fixtures reported to Platts include the Bonita, placed on subjects at w150 for an April 21 loading on a Primorsk-NWE route on Thursday afternoon.
"It is a difficult one to call today," said a shipbroker. "We've got fixtures at w105-110 levels but then the Bonita was offered for a crude cargo off natural dates at w150. There is an abundance of ice cargoes and it is looking busy for dates up to April 20."
By the Platts Market on Close Thursday multiple sources reported details of a cargo scheduled to load April 22-23 out of Ust Luga, Russia being offered at w175 levels, leading to sentiment that rates are likely to rise further.
A shipowner added: "Aframaxes in the North are either on subs or fixed so charterers took a look at the position list this morning [Thursday] and decided that there was no more time to hope for short options to be declared on unclear positions...the time to act was now. That's why double-digit increases on the last done [freight rate] are now the norm."
Source: Platts