This week witnessed a continued softening in the Middle East Gulf (MEG) Long Range 2 (LR2) tanker market. The TC1 index for 75,000-tonne cargoes traveling from the MEG to Japan experienced a further decline, dropping from WS250 to WS130.28, reports Baltic Exchange.
VLCC
The VLCC (Very Large Crude Carrier) market continued its downward trend this week. The rate for the 270,000 mt Middle East Gulf to China voyage (TD3C) fell by 3 Worldscale (WS) points to WS54.10. This corresponds to a round-trip Time Charter Equivalent (TCE) of $36,533 per day, which is approximately $1,100 per day lower than the previous week.
In the Atlantic market, the rate for the 260,000 mt West Africa to China route (TD15) saw a slight decrease of just over one WS point, settling at WS58.19. This gives a round voyage TCE of $41,981 per day, which is about $700 per day higher compared to last week.
The rate for the 270,000 mt US Gulf to China route (TD22) has been steadily declining throughout the week, losing $352,500 since last Friday. It is currently assessed at $8,260,000, resulting in a daily round-trip TCE of $46,629, approximately $1,000 per day less than the figure from last Friday.
Suezmax
Suezmax owners have seen positive developments this week, capitalizing on market demand. The rate for the 130,000 mt Nigeria to UK Continent voyage (TD20) has increased by 9 WS points to WS104.72, resulting in a daily round-trip TCE of $48,650. Similarly, the TD27 route (130,000 mt Guyana to UK Continent, basis Rotterdam discharge) climbed by 7 WS points to WS103.61, translating to a daily round-trip TCE of $47,818.
The recent operational issues at CPC (Caspian Pipeline Consortium) appear to have been resolved, and export volumes from the region have been sustained. Consequently, the rate for the TD6 route (135,000 mt CPC to Mediterranean) has remained steady at approximately WS130, showing a daily TCE of around $65,500 for a round trip.
In the Middle East, the rate for the TD23 route (140,000 mt Middle East Gulf to Mediterranean, via the Suez Canal) has also seen a slight gain of one WS point, reaching just over WS91.
Aframax
In the North Sea, the Aframax market for the 80,000 mt Cross-UK Continent route (TD7) has stabilized, with rates holding in the WS135-137.5 range. This translates to a daily round-trip TCE of $53,221, based on a voyage from Hound Point to Wilhelmshaven.
The Aframax market in the Mediterranean has seen a recovery, with the rate for the 80,000 mt Cross-Mediterranean route (TD19) increasing by 8 WS points to WS178.39 (based on a voyage from Ceyhan to Lavera). This equates to a daily round trip TCE of just under $60,646.
Across the Atlantic, the Aframax market experienced improvement throughout the week until Thursday, and while it now appears to be gradually softening, rates remain above the levels seen last week. The rates for the 70,000 mt East Coast Mexico to US Gulf route (TD26) and the 70,000 mt Covenas to US Gulf route (TD9) are approximately 4 WS points higher than last Friday’s levels, at WS225.83 and WS221.56, respectively. These rates correspond to daily round-trip TCEs of $68,309 and $61,039.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Baltic Exchange
