The market for Very Large Crude Carriers (VLCCs) weakened this week, with rates declining on several key routes. Notably, rates on the TC1 route (75,000 MT Middle East Gulf to Japan) fell significantly, while the TC20 route (90,000 MT Middle East Gulf to UK-Continent) also saw a substantial drop. However, there was some positive momentum on the TC15 route (West of Suez), with rates experiencing a slight increase, reports Baltic Exchange.
MR
The TC17 35kt MED/East Africa route saw a more subdued week following a period of volatility, with rates dropping WS2.14 to close at WS183.57.
The TC2 37kt ARA/US-Atlantic coast route experienced a significant correction, with the index shedding WS18.44 to publish at WS143.75. Similarly, TC19, the ARA/West Africa route, mirrored this decline, losing WS18.43 and closing at WS166.88.
Across the Atlantic, the MR market displayed a bearish trend. The TC14 38kt US-Gulf/UK-Continent route marked down WS3.93, closing at WS118.93.
VLCC
Despite the Lunar New Year festival in the Far East, market activity remained robust this week. Owners capitalized on this opportunity to push rates back up after the previous week’s decline.
The 270,000 mt Middle East Gulf to China trip (TD3C) rebounded significantly, gaining approximately 8 points to WS60.15, translating to a daily round-trip TCE of $38,212.
In the Atlantic market, the rate for 260,000 mt West Africa/China (TD15) increased by nearly 4 points to WS61.44, corresponding to a daily round voyage TCE of $39,968 per day.
While the 270,000 mt US Gulf/China (TD22) route experienced an initial decline early in the week, it rebounded strongly by Thursday, closing $180,000 firmer week-on-week at $8,855,000, equivalent to a daily round trip TCE of $45,906.
Suezmax
The Suezmax market witnessed a busy week in the West, with notable rate increases. The 130,000 mt Nigeria/UK Continent voyage (TD20) gained 4 points, reaching WS80.94, translating to a daily round-trip TCE of $29,948.
Similarly, the TD27 route (Guyana to the UK Continent) climbed 3 points to WS74.44, resulting in a daily round-trip TCE of $25,568. The TD6 route of 135,000 mt CPC/Med maintained a stable rate around WS89-90, indicating a daily TCE of slightly over $28,300 round-trip.
Aframax
In the North Sea, the rate for the 80,000 mt Cross-UK Continent route (TD7) weakened slightly, easing by 2.5 points to WS107.5 giving a daily round-trip TCE of $19,344 basis Hound Point to Wilhelmshaven.
In the Mediterranean market, the rate for 80,000 mt Cross-Mediterranean (TD19) fell almost 5 points to WS119.67 (basis Ceyhan to Lavera, that shows a daily round trip TCE of $27,892).
Across the Atlantic, the market has started to bounce back. The 70,000 mt East Coast Mexico/US Gulf route (TD26) and the 70,000 mt Covenas/US Gulf route (TD9) saw rates recover 6.5 points to both end up at the WS120 level, which shows a daily round-trip TCE of around $21,000 and $18,600 respectively.
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Source: Baltic Exchange
