Freight
Market Overview
Freight - Dirty Outlook
Despite a generally weak July for TD25, Afra markets have begun to react to the threat of a sustained reclosure of the Strait and threats to Bab el-Mandeb, resulting in FFA rising from WS 166 to WS 249.
The risk to this rally remains the globally unattractive pricing for WTI, which may lead to a quick fade as Afra demand is capped.
Freight - Clean Outlook
TC14 rates have been weakening, with freight balances persistently soft as vessel supply remains loose. Supply is set to climb to a high of 20 vessels for seven days ahead.
Closed diesel arbs have been a major driver of prompt weakness, as gasoline arbs into LATAM make up current demand.
Should HOGO narrow due to demand for distillate imports into Europe, there may be a buying opportunity for TC14.
