Aframax Market Update: Recovery In North Sea And Mediterranean

LR2

LR’s in the MEG softened again for the second week. The 75kt MEG/Japan TC1 index dipped 12.22 points to WS246.67. The 90kt MEG/UK-Continent TC20 trip to the UK-Continent steadily dropped across the week from $6.9 million to $6.4 million.

West of Suez, Mediterranean/East LR2’s look to have been dormant all week seeing the index drop an incremental $62,500 to $5.83 million.

LR1

In the MEG, LR1 freight has been under pressure. The 55kt MEG/Japan index of TC5 has been hammered down 46.88 points to WS246.25. The 65kt MEG/UK-Continent of TC8 lost 11% of its value across the week settling down at $5.25 million.

On the UK-Continent, the 60kt ARA/West Africa TC16 run remained relatively sedate this week, the index dropped to WS229 where it has held for a couple of days.

MR

MR’s in the MEG have been under consistent pressure this week again resulting in the TC17 index losing 100 points and is currently pegged at WS286.43.

UK-Continent MR’s have continued their upward trajectory this week. The 37kt ARA/US-Atlantic coast of TC2 index ticked up 35 points across the week to be currently marked at WS250.83. On a TC19 run (37kt ARA/West Africa) the index similarly added 36.25 points to its value and sits at WS272.81 for the moment.

The USG MR’s after a slow start continued their positive movement this week. TC14 (38kt US-Gulf/UK-Continent) went from WS170.36 to WS185.71. The 38kt US Gulf/Brazil on TC18 also crept up 27.5 points to WS260.36. The 38kt US-Gulf/Caribbean TC21 climbed $191,428 to $885,714. At these levels on Baltic TCE round trip TC14 is returning over $20,000 per day and TC18 and TC21 are returning over $30,000 per day.

Handymax

In the Mediterranean, Handymax’s saw another week of improvement although not to the same magnitude as last week. The TC6 index climbed 8.28 points to WS278.06.

Up in North West Europe, the TC23 30kt Cross UK-Continent index hopped up to WS264.44 (+51.11) increasing the Baltic round trip TCE for the run by 55% to $39,000 per day.

VLCC

Despite the Lunar New Year Holiday in the East, the market has significantly firmed this week. The rate for the 270,000 mt Middle East Gulf to China route amassed 23 points since last Friday to WS89.23 which corresponds to a daily round-trip TCE of about $69,784 basis the Baltic Exchange’s vessel description.

In the Atlantic market, the 260,000 mt West Africa/China gained 18 points to WS85.65 which shows a round voyage TCE of $65,531 per day while the rate for 270,000 mt US Gulf/China recovered a further $433,334 during the course of the week to $9,827,778 (providing a round-trip daily TCE of $51,020).

Suezmax

Suezmaxes in West Africa bottomed out last Friday with the rate for 130,000 mt Nigeria/UK Continent recovering eight points this week to WS113.64 (a daily round-trip TCE of $44,264). In the Mediterranean and Black Sea region the rate for 135,000 mt CPC/Med remained steady at around the WS128 level (showing a daily TCE of around $52,500 round-trip). In the Middle East, the rate for 140,000 mt Middle East Gulf to the Mediterranean (via the Suez Canal) dropped another seven points to a shade below WS110, but the continuing risk of attacks means most owners and charterers choose to go via the Cape of Good Hope which is reported to be fixing at about WS80.

Aframax

In the North Sea, the rate for the 80,000 mt Cross-UK Continent route stemmed the recent falls and recovered three points to WS161.07 (showing a round-trip daily TCE of $55,078 basis Hound Point to Wilhelmshaven).

In the Mediterranean market the rate for 80,000 mt Cross-Mediterranean also firmed, regaining 22 points of the recent losses to WS187.5 (basis Ceyhan to Lavera, which shows a daily round trip TCE of $56,708).

Across the Atlantic, the Stateside market has been steadier this week with rates firming slightly. The rate for 70,000 mt East Coast Mexico/US Gulf (TD26) firmed by three points to WS216.56 (a daily TCE of $60,822 round trip) and the rate for 70,000 mt Covenas/US Gulf (TD9) is 2.5 points firmer than a week ago at WS205 (a round-trip TCE of $49,971 per day). The rate for the trans-Atlantic route of 70,000 mt US Gulf/UK Continent (TD25) rose another 10 points to WS210.94 (a round trip TCE basis Houston/Rotterdam of $52,544 per day).

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Source : Baltic exchange

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