ABUJA: Arrivals of VLCCs into China over the week plummeted to their lowest in five months, cFlow, Platts trade flow software showed, dragging total North Asian landings to their lowest in four weeks, while sailings from Iraq and Nigeria also hit multi-month lows.
Landings in China dropped to 12 from 20 the previous week a low not seen since before June. This meant total North Asian inflow dropping to a four-week low of 29.
Elsewhere, sailings from Nigeria slumped to one, their lowest in six weeks, and five ships departed from Iraq’s port of Basra, the smallest volume in at least 13 weeks.
Iraq’s exports have been in a downtrend recently, averaging 2.72 million b/d of crude exports in October — 2.061 million b/d of Basrah Light and 659,487 b/d of Basrah Heavy — with the loadings of the former down 8.4% September, while Basrah Heavy dropped 15.5%.
In recent months, Iraq had been exporting more than 3 million b/d from the Persian Gulf but poor weather hampered October loadings and brought operations to a halt over October 28-31, causing the volumes waiting to be loaded at the port to spill over into November, at around 35 million barrels.
This large volume is also due to the very high loading program that the State Oil Marketing Organization had planned for October, at 3.676 million b/d. SOMO has reduced the November loading program from the Gulf terminals to 2.819 million b/d, which will help to partially absorb the overspill.
Among other Persian Gulf producers, kingpin Saudi Arabia sent out 24 VLCCs, a rise of five week on week, while from the UAE departures rose to 26 from 20. Iranian sailings rose slightly to four from three.
In West Africa, while Nigerian sailings tumbled, departures from Angola increased by one to four, the highest volume in four weeks.
Elsewhere, in North Asia, apart from China, landings remained stable, and eight ships arrived in Japan, up by one, while South Korea and Taiwan had six and three landings, up by two and flat, respectively.
Landings in India rebounded, rising to seven from four.
CURRENT LOCATIONS/DESTINATIONS
The bulk of the global VLCC fleet was observed in the Midle East on Wednesday at 177 ships — the largest volume since before June — while Southeast Asia and India/Pakistan made up the next largest concentrations, at 145 — a rise of five — and 55 — down by 16.
In the Persian Gulf, the pool of ships surged to 135, a rise of ten, and also its highest since before June, with the elevated volumes waiting to load at Basrah, at 18 VLCCs, adding upward pressure.
In destinations, the count of VLCCs heading for North Asia Wednesday was 111, the smallest volume in at least 15-weeks, with the number bound for China sinking to 53, also the lowest level over the same period. The next biggest destinations were South Korea, Southeast Asia and India, at 31, 30 and 27, respectively.
Ballasting to the Middle East, which is already bloated with VLCCs, were 80 ships, a drop of eleven, while 18 tankers were headed to WAF, a rise of four to the highest volume in six weeks.
WEEKLY AVERAGE FREIGHT RATES
Across key regions over the week, daily average freight rates all moved higher, yet in terms of weekly averages, directions were mixed.
On benchmark VLCC routes, weekly average rates from PG-Japan eased to Worldscale 58.60, down 2% from last week and off by 32% from four weeks ago.
PG-China rates fell to w57.80, marking the same weekly and monthly percentage decreases, according to Platts assessments.
Yet, PG rates to the west coast of India widened, gaining to w69.20, rising by 4% from the previous week but still lower by 44% from a month earlier.
From West Africa, rates also climbed, and along West Africa-Far East, rose to w64.50, up by 5% on the week yet still down 23% from a month earlier.
Shipping activity at Port Qasim on February 11
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