Medium-range freights to US Atlantic have risen due to growing demand and contracted tonnage. Platts reported W205 for the UKC-US Atlantic Coast route up from a month low of W140 on Oct. 19. On that date, the w205 rate was recorded for the Med-USAC route too, which is an improvement on w145. Strong question rates in the UK Continent and tight vessel volume on both sides of the Atlantic contribute to this situation. On the other hand, long-term rates have not gained largely since little inquiries are conducted on them.
Steady LR Sentiment Persists
LR shipping rates have not matched those of the MR market. This has been occasioned by low inquiry levels, a limited AG market, and one instance, the Bahri event. However, several cargo vessels currently move slowly while LRs tend to be stable. Furthermore, low outputs of products in Asia owing to a stoppage for the refinery have put pressure on LR shipping. The influx of LR2 in the Aframax fleet has compounded the low tonnage figures due to strong dirty tanker rates.
Things are a bit more questionable at the moment because of a slow AG market and the Bahri event, but there are a few cargoes on the way, which should be enough to keep sentiment steady,” a UK-based LR owner said.
Product volumes have been lower in the Asian market due to refinery maintenance works in Asia and Saudi Arabia, but tonnage levels are also being reduced by LR2 vessels joining the Aframax fleet to take advantage of booming dirty tanker rates, a Europe-based LR broker said
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Source: S&P Global
