Americas Aframax rates surge to record high as shipowners regain upper hand

Aframax freight rates for the Vancouver-China route reached an all-time high on Sept. 10 as shipowners seized on tight tonnage amid strong global demand.

"Blood in the water and the owners are sharks," one shipbroker said.

Shipowners weighed earnings out of Vancouver against a strengthening market in the Far East and Arab Gulf, where owners can earn a premium, the shipbroker said, as well as a position list that multiple shipbrokers described as tight.

After the benchmark 80,000 metric ton Vancouver-China rate held steady at roughly $3.1 million for much of August and early September, shipowner Centrofin capitalized on ExxonMobil opening a Vancouver-East cargo loading in end-September. The broker said the charterer had arrived "a touch late to market."

ExxonMobil ultimately agreed to $7.5 million for the trans-Pacific run.

Platts, part of S&P Global Energy, assessed the benchmark 80,000 mt Vancouver-China run at $7.5 million, the highest level since Platts started publishing the assessment on Oct. 1, 2024.

"All bets are off now, everyone behind this will want a king's ransom," the shipbroker said. "And they showed that run is worth a king's ransom now."

In the US Gulf Coast, six transatlantic fixtures were reported on Sept. 10. Eni repeated the last-done level at 310 Worldscale points before Sinochem booked the Monza loading Sept. 25 at w365. ATMI and Equinor booked third-decade September loaders at w400, with demurrage at $150,000/d and $175,000/d, respectively. In the afternoon, BP booked an end-September loader at w425, with $185,000/d demurrage, before Equinor booked the Lake Stars loading in the third decade of September at w450.

Platts assessed the benchmark 70,000 mt US Gulf Coast-UK Continent/Mediterranean route at w450, in line with the latest reported deal. The assessed level of w450 is the highest since April 28, and the w140 increase is the largest in a single day since March 23.

Market sources reported further fixing activity after the Sept. 10 Platts Market on Close assessment process, with tankers heard placed on subjects at w475 and subsequently at w500. Platts was unable to confirm those levels prior to the 1:30 pm CT market close.

"The sky is the limit [on rates] when freight forward agreements and owners [are] bulled up," a second shipbroker said.

Global freight rates have surged in recent days following the latest escalation in the conflict between the US and Iran. US Central Command announced on Sept. 8 that US forces had "destroyed" five Iranian crude tankers in the Gulf of Oman and one near Kharg Island, Iran's primary crude export hub. Iran on Sept. 9 claimed its navy attacked two US ships and eight oil tankers in the Gulf.