Aframax freight rates on routes from the Caribbean to the US Gulf Coast and to the US Atlantic Coast dropped to their lowest level in two-and-a-half months on the back of a glut of available tonnage in the US Gulf Coast region.
Freight rates on the routes, basis 70,000 mt, were assessed by Platts Worldscale 15 down Wednesday at w100 after a number of ships were reported to have gone on subjects in the w97.5-105 range.
The w100 assessment on the Caribbean-US Gulf Coast route equates to $10.08/mt, the lowest since November 26, when rates were also at $10.08/mt.
Shipping sources said the current disparity between the cost of Panamaxes and Aframaxes in the Caribbean had led some charterers to load Panamax stems on Aframaxes.
By comparison, Panamax freight rates on the Caribbean-US Gulf Coast route were assessed at w160 on Wednesday, which equates to a pricier $15.38/mt.
"I believe Panamax stems are going on Aframaxes at the moment," said one US-based shipbroker. "Panamax freight rates are just too high right now. As long as there's this sort of cost difference it's better to use an Aframax." A second US-based shipbroker supported this line of thinking.
"As long as the vessel can fit into the relevant port, it makes sense to take an Aframax rather than a Panamax," the shipbroker said.
Shipping sources also said that the high number of Aframaxes available for prompt loading in the US Gulf was a driver of the declining rates.
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