WAF-NWE Suezmax freight rates at three-year lows on weak fundamentals: sources

The cost of sending 130,000 mt Suezmax crude oil cargoes from West Africa to northwest Europe hit a three-year low Thursday, hit by ample tonnage and a lack of demand for cargoes amid refinery maintenance in Europe, sources said.

The Suezmax freight rate on the WAF-NWE route dropped $0.52/mt to $8.85/mt, the lowest since October 26, 2010 when it was $8.55/mt, Platts data showed.

Two ships on the WAF-Mediterranean route were heard Thursday to be at Worldscale 40, equivalent to $8.73/mt. The Leonid Loza, owned and managed by Sovcomflot Group, was heard Thursday on subjects to Repsol loading on October 18 from WAF to Spain at w40, while the Huelva Spirit, owned by Teekay tankers, was heard on subs to Eni, loading on October 18 from WAF to Med at w40.

Sources said the Huelva Spirit was on time charterer to Cepsa, and needed to get back to the Mediterranean.

The freight rate on WAF-NWE route could drop further, with 47 ships available and naturally positioned in Nigeria for October 20 crude loading dates, a shipbroker said Friday.

"Most recent cargoes have been getting lots of offers, some had 14 offers. There are not enough cargoes, and too many ships," he said, adding: "Reduced Black Sea and Libya have all added the problem, to drive the rates lower,".
Source: Platts