Aframax Rates to Continue Firming in Asia
The Asian Aframax market has been strengthening steadily and the rates are expected to continue firming on the back of increased cargoes, weather delays and a tighter tonnage list.
According to MANA, the rates for the Indonesia-Japan route were up by w30 points week-over-week at w130, while The Baltic Exchange’s benchmark TD14 route reached w127.50 on Tuesday, jumping by w29 points w-o-w.
Hahn said that this was partly due to underlying seasonality as refiners in the region typically raise utilization rates during the fourth quarter of the year in order to meet winter demand.
Japanese refiners increased their average utilization rate from 90% to 92.3% for the week ending December 3. This has led to growing demand for crude imports and subsequently cargoes, providing a seasonal boost to Aframax rates.