WAF-Europe Suezmax freight rates jump on more demand: sources

The cost of sending 130,000 mt Suezmax crude oil cargoes from West Africa to Northwest Europe rose sharply on more demand in the WAF region for the second week of November, shipping sources said Monday.

Suezmax freight rates on the WAF-NWE route, jumped to Worldscale 64.50 ($13.44/mt) on Friday, reaching the highest since August 16, when the rate on the route was w65 ($13.54/mt), Platts data shows.

Shipping sources said the Suezmax freight rates on the WAF-NWE and WAF-Mediterranean routes, basis 130,000 mt, have more potential to move up this week.

Shipbrokers and shipowners pegged the rates on the WAF-NWE route at w65 early on Monday, after more cargoes were heard to be covered for the second decade.

"It's going to be quiet today, but I am pegging rates at w65," a shipbroker said. There were around six cargoes to be covered, and a few more cargoes are expected to be added for fixing this week.

Typically, the freight rate on the WAF-Med route, basis 130,000 mt moves in tandem with the WAF-NWE route.

Freight rates on the WAF-Med route, jumped w9.50 ($2.07/mt) to w64.50 (14.08/mt, reaching the highest since August 16 when the rate on the route was w65 ($14.19/mt), according to Platts data.

Sources said the number of cargoes moving on this route have been plentiful especially in the first two weeks of November, with a large amount of West African crude traveling to Europe, as many refineries in the region are poised to come back from maintenance by late November.
Source: Platts