Asian aframax charter rates may snap a four-day gain because of slowing demand for bigger tankers. The rate to transport 80,000 metric tons on an aframax from Kuwait to Singapore rose 0.4 percent to Worldscale 160 yesterday, according to data from the London-based Baltic Exchange. Shipping a ton of fuel on the route costs $14.96, based on data compiled by Bloomberg.
Aframax rates have been tracking fees for very large crude carriers plying the Middle East-to-Japan route in the past three weeks, according to shipbrokers including Takeshi Ando at Matsui & Co. in Tokyo.
''I didn't see many aframax fixtures yesterday and I expect rates to move sideways to lower,'' Matsui's Ando said by phone. There are enough ships for March cargoes.''
The rate to ship fuel on a very large crude carrier or VLCC to Japan from the Persian Gulf fell 6.5 percent to Worldscale 124.06 on March 4 from Feb. 29, based on the Baltic Exchange's data. VLCCs, also known as supertankers, can carry 2 million barrels of oil.
VLCC rates on the Middle East to Japan route surged 22 percent in the past three weeks as aframax rates on the Middle East-to-Singapore route advanced 11 percent in the same period.
The ''trend will likely be steady for the time being'' as end-March cargoes emerge for shipment on aframaxes, London-based Galbraith's Ltd. said in a Feb. 29 report.
Shipbrokers may start fixing cargoes for April shipment next week, Matsui's Ando said.
Only three aframaxes, capable of moving a total of 286,895 tons of cargo, are scheduled to arrive in Singapore next week, according to Bloomberg data. That compares with six this week with a combined capacity of 628,453 tons.
Aframax rates have been tracking fees for very large crude carriers plying the Middle East-to-Japan route in the past three weeks, according to shipbrokers including Takeshi Ando at Matsui & Co. in Tokyo.
''I didn't see many aframax fixtures yesterday and I expect rates to move sideways to lower,'' Matsui's Ando said by phone. There are enough ships for March cargoes.''
The rate to ship fuel on a very large crude carrier or VLCC to Japan from the Persian Gulf fell 6.5 percent to Worldscale 124.06 on March 4 from Feb. 29, based on the Baltic Exchange's data. VLCCs, also known as supertankers, can carry 2 million barrels of oil.
VLCC rates on the Middle East to Japan route surged 22 percent in the past three weeks as aframax rates on the Middle East-to-Singapore route advanced 11 percent in the same period.
The ''trend will likely be steady for the time being'' as end-March cargoes emerge for shipment on aframaxes, London-based Galbraith's Ltd. said in a Feb. 29 report.
Shipbrokers may start fixing cargoes for April shipment next week, Matsui's Ando said.
Only three aframaxes, capable of moving a total of 286,895 tons of cargo, are scheduled to arrive in Singapore next week, according to Bloomberg data. That compares with six this week with a combined capacity of 628,453 tons.