Tanker Market Sees Mixed Movements Across Segments Amid Post-Easter Activity

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Mfame Editor
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The tanker market experienced a range of movements across vessel classes and regions this week, with notable gains in VLCC and Suezmax sectors, while Aframax and MR segments faced corrections. Here’s a detailed breakdown of the latest freight and TCE (time charter equivalent) trends.

LR2 and LR1 Markets: Modest Gains in MEG, Stability West of Suez

  • LR2s:
    The Middle East Gulf (MEG) LR2 market saw modest improvements.

    • The TC1 75kt MEG/Japan index rose from WS117.22 to WS126.67.

    • The TC20 90kt MEG/UK-Continent route held flat around $3.5 million.

    • In the Mediterranean, TC15 rates dipped slightly by $35,000 to just under $3.1 million.

  • LR1s:
    MEG LR1 freight rates climbed more optimistically than LR2s.

    • The TC5 55kt MEG/Japan index gained 19.88 points to WS149.88.

    • TC8 65kt MEG/UK-Continent rates increased from $2.65 million to $2.84 million.

    • On the UK-Continent, the TC16 60kt ARA/West Africa index remained steady at around WS130.

MR Market: Divergent Trends Across Regions

  • Middle East Gulf:
    The TC17 35kt MEG/East Africa index rose from WS198.93 to WS211.43, pushing the Baltic TCE over $20,000/day.

  • UK-Continent:
    Activity was sluggish.

    • TC2 37kt ARA/US-Atlantic coast dropped 4.38 points to WS147.5.

    • The TC19 37kt ARA/West Africa followed closely, dropping from WS172.19 to WS167.5.

  • US Gulf:
    MRs fell back after recent gains.

    • TC14 38kt US-Gulf/UK-Continent slipped from WS128.57 to WS107.56.

    • TC18 38kt US Gulf/Brazil declined 21.43 points to WS155.

    • TC21 38kt US-Gulf/Caribbean dropped 23% to $503,571.

  • Overall Atlantic MR Basket:
    TCE fell from $26,808 to $22,498.

Handymax: Slight Weakness in Both Mediterranean and UK-Continent

  • Mediterranean:
    The TC6 index declined from WS175.56 to WS169.72.

  • UK-Continent:
    The TC23 30kt Cross UK-Continent route lost 10.28 points to WS170.

VLCC: Market Recovery Continues Across All Routes

  • Middle East Gulf/China (TD3C):
    Rates climbed 5 points to WS70.93, with a TCE of $55,010/day.

  • West Africa/China (TD15):
    Rates rose 4 points to WS68.41, translating to a TCE of $52,418/day.

  • US Gulf/China (TD22):
    Rates recovered to $8.35 million, marking a $237,942 jump since pre-Easter.

Suezmax: Stronger Rates, Particularly in West Africa

  • West Africa/UK-Continent (TD20):
    Rates climbed 9 points to WS120.28 ($57,338/day TCE).

  • Guyana/UK-Continent (TD27):
    Rates rose 4 points to WS115.28.

  • CPC/Med (TD6):
    Stayed steady around WS135, maintaining high TCEs of about $67,939/day.

  • Middle East/Med (TD23):
    Stable at WS91.

Aframax: North Sea Up, Mediterranean and Americas Down

  • North Sea (TD7):
    Rates added 2 points to near WS140, TCE about $55,065/day.

  • Mediterranean (TD19):
    Rates fell 8 points to WS181.11, but TCE still at a robust $61,100/day.

  • Americas:

    • TD26 (East Coast Mexico/US Gulf) and TD9 (Covenas/US Gulf) dropped 28 and 27 points, respectively.

    • TD25 (US Gulf/UK-Continent) fell 17 points to WS176.39.

While larger crude carriers (VLCCs and Suezmaxes) saw substantial rate increases, smaller product tankers, particularly in the Atlantic, witnessed a slowdown. The upcoming weeks will reveal whether bullish sentiment among crude owners can be sustained and whether product tankers can recover momentum.

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Source: Baltic Exchange