The Middle East Gulf (MEG) LR2 market saw an increase in inquiries this week, resulting in a slight improvement in freight rates. TC1 75kt MEG/Japan rose by 22.5 points to WS125.56, and TC20 90kt MEG/UK-Continent increased from $3.3 million to $3.63 million. In the West of Suez, the Mediterranean/East LR2 market (TC15) remained inactive, leading to a 5% decline in rates to $2.99 million, reports Baltic Exchange.
Clean
MR’s in the MEG held resolute at WS190 all week which is where the TC17 35kt MEG/East Africa index is currently pegged. The Baltic TCE for the runs remains around the $16,000 /day round trip.
UK-Continent MR’s crumbled this week. The TC2 index 37kt ARA/US-Atlantic coast notably had its 50-point rise of last week recorrected back down over 72 hours seeing the index go from WS163.44 to bottom out at WS116.88 by close of play Wednesday. The index has since returned to WS125.63 ($10,340 /day Baltic round trip). The TC19 run of 37kt ARA/West Africa continues to pay a circa WS22.5 point premium over TC2.
In the US Gulf, lack of inquiry and continued trepidation has led to TC14 38kt US-Gulf/UK-Continent sinking from WS106.43 to WS94.29. The TC18 the 38kt US Gulf/Brazil index mirrored TC14 and dropped 9.64 points to WS146.43. A Caribbean run on TC21, 38kt US-Gulf/Caribbean also lost 16% of its value to be assessed at $410,714.
VLCC
The VLCC sector witnessed an active week, with charterers initially exerting downward pressure on rates. The 270,000 mt Middle East Gulf to China trip (TD3C) experienced a decline, falling to the mid-WS50s early in the week. However, owner resistance has led to a slight recovery in rates, with a current level of WS59.40, representing a weekly decline of 7 points. The corresponding round-trip TCE for this route stands at $37,525 per day based on the Baltic Exchange’s vessel description.
In the Atlantic market, the rate for 260,000 mt West Africa to China (TD15) initially dipped below WS60. However, it has since rebounded to the WS62 level, resulting in a weekly reduction of 6 points. This translates to a round voyage TCE of just over $40,000 per day. The rate for 270,000 mt US Gulf to China (TD22) experienced a significant decline, falling by nearly $500,000 to end the week at $8,347,500. This translates to a daily round-trip TCE of $41,811.
Suezmax
The Suezmax market has faced some pressure this week. The rate for the 130,000 mt Nigeria/UK Continent voyage (TD20) has declined by 6 points to WS88.61, resulting in a daily round-trip TCE of $34,785.
The TD27 route (Guyana to UK Continent basis 130,000 mt) has experienced a smaller decline, losing only 1 point to WS87.5, translating to a daily round-trip TCE of $33,856.
In the Middle East, the rate for the TD23 route of 140,000 mt Middle East Gulf to the Mediterranean (via the Suez Canal) dropped 2 points to WS91.22.
However, there have been some positive developments. The market for the TD6 route of 135,000 mt CPC/Med has seen a significant increase of 5 points this week to WS104.50, driven by the anticipated arrival of 39 cargoes in March. This translates to a daily TCE of a $41,011 round-trip.
Aframax
The North Sea market saw stability, with the rate for the 80,000 mt Cross-UK Continent route (TD7) holding steady at WS107.5, resulting in a daily round-trip TCE of $25,619 basis Hound Point to Wilhelmshaven.
In contrast, the Mediterranean market witnessed a significant increase, with the rate for 80,000 mt Cross-Mediterranean (TD19) rising by 20 points to WS153.06 (basis Ceyhan to Lavera), translating to a daily round-trip TCE of $44,666.
Across the Atlantic, the market has stagnated. Both the 70,000 mt East Coast Mexico/US Gulf route (TD26) and the 70,000 mt Covenas/US Gulf route (TD9) declined by 4 points to settle at WS113-114 on Thursday. This translates to daily round-trip TCEs of approximately $15,000 and $16,000, respectively.
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Source: Baltic Exchange
