- The tanker market experienced mixed fortunes this week. VLCC and Suezmax rates dipped slightly, while Aframax rates remained under pressure on some routes.
- However, the product tanker market (MR and Handysize) saw significant gains, with some rates jumping over 30%.
The VLCC (Very Large Crude Carrier) market continued its downward trend this week. Most routes saw rates slowly decline with limited fresh inquiries from charterers. Key benchmark routes include:
- AG (Arabian Gulf) to USG (US Gulf Coast):50 (down from previous week)
- AG to Singapore:60 (down from previous week)
- USG to East Coast ports: $5.3 million to Singapore, $5.9 million to Long-East
Suezmax Market Quiet
The Suezmax market in West Africa remained relatively uneventful. Charterers held their cards close to their chest, keeping rates stable for the most part. TD20 route (West Africa to USG) settled at around WS109.83. The Americas saw a busier first half of the week for Suezmaxes, but activity faded later. USG to East Coast South America rates dipped slightly.
Aframax Market Busy but Rates Under Pressure
The Aframax market saw a busy week, particularly for routes into Europe. Despite steady cargo flow, Transatlantic rates hovered between WS170-WS175. Local routes out of East Coast Mexico witnessed a correction downwards to WS175.
Product Tanker Market Soars
The MR (Medium Range) product tanker market experienced a significant rise in rates across the board. TC2 route (Europe to Asia) jumped from WS150 to WS182.5. Similar trends were observed in the Americas, with rates rising throughout the week before settling down slightly on Friday.
Handysize Market Sees Uptick
The Handysize market also saw some positive movement, with rates on the MED (Mediterranean) to East Med route climbing over 30%.
Looking Ahead
The next week will be a shortened week due to holidays. Whether the current market trends will continue or if there will be further corrections remains to be seen.
Additional Information
The report also includes charts showing:
- Global Climber and Decliner of the Week for tanker rates
- US Crude Oil Stocks and US Gasoline Demand (compared to previous week and year)
- Bangladesh-India-Pakistan Tanker Demolition Market trends
- S. Jet Fuel Demand (compared to previous week and year)
- Average earnings for each tanker size class
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Source: CRWeber
