Shortage of Aframax Tankers in Med

Freight rates for Aframax tankers on Black Sea-Mediterranean and cross Mediterranean routes almost doubled on Friday to their highest since July, driven by demand for loadings at the end of November at a time when many Aframaxes are storing oil at sea.

News ID: 70251

Date: 14 November 2016 - 10:20

Rates for these routes jumped to 120-140 Worldscale points (WS) from WS70-80 on Thursday, shipping reports showed, cited by MANA correspondent.

Rates for northwest European freight also rose to WS100, their highest since September, from WS60-70 on Thursday.

"Freight rates have just exploded (and) took us by surprise. We had to try really hard to fix an Aframax for a simple Med journey at WS130," one trader in the Mediterranean market said.

"The North Sea (oil) market is weak. There are lots of unsold volumes, and also a lot of unsold November volumes in the Mediterranean, so sellers are keeping the crude, waiting for buyers," said one European trader, explaining why so many Aframaxes were tied up storing oil.