The VLCC market experienced a strong start to the week, with rates for Middle East Gulf (MEG) routes continuing to climb. However, the upward momentum later paused, reports Baltic Exchange
VLCC
The dry bulk market witnessed a surge in activity this week, with rates experiencing a significant increase of over 50% on average.
The 270,000 mt Middle East Gulf to China route (TD3C) saw a remarkable increase, with rates climbing by almost 28 points to WS77.10. This translates to a significant daily round-trip TCE of $56,891.
Similarly, in the Atlantic market, the 260,000 mt West Africa/China (TD15) route experienced a substantial rate increase of 24.67 points, reaching WS76.56. The 270,000 mt US Gulf/China (TD22) route also witnessed a significant surge, with rates increasing by $3,315,000 to $9,775,000.
These substantial rate increases across key routes highlight the strong demand and limited supply currently prevailing in the dry bulk market.
Suezmax
Suezmax rates have shown some improvement this week, but they still lag behind other vessel segments.
- Nigeria to UK Continent (TD20): Rates recovered significantly, gaining 20 points to WS86.39, resulting in a daily round-trip TCE of $32,367.
- Guyana to UK Continent (TD27): Rates increased by nearly 13 points to WS86.39, translating to a daily round-trip TCE of $28,064.
- CPC to Mediterranean (TD6): Rates improved by 13.5 points to WS90.05, resulting in a daily round-trip TCE of $27,706.
- Middle East Gulf to Mediterranean (TD23): Rates gained 18 points to just over the WS97.5 mark.
Despite these improvements, Suezmax rates continue to face challenges in keeping pace with the stronger performance observed in other vessel segments.
Aframax
In the North Sea, the rate for the 80,000 mt Cross-UK Continent route (TD7) remained stable, hovering around the WS110 level, resulting in a daily round-trip TCE of approximately $19,000.
In the Mediterranean, the Cross-Mediterranean route (TD19) experienced a rebound after a significant decline last week. Rates increased by nearly 22 points to WS122.22, translating to a daily round-trip TCE of $28,245.
Across the Atlantic, rates experienced a downturn after a sharp increase last Friday. The 70,000 mt East Coast Mexico/US Gulf (TD26) and Covenas/US Gulf (TD9) routes saw significant declines, with rates dropping by 18 and 16 points respectively. The trans-Atlantic route (TD25) also witnessed a substantial decline, with rates falling by over 33 points.
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Source: Baltic Exchange
