After two consecutive weeks of rising freight rates for LR2 (Long Range 2) tankers in the Middle East Gulf (MEG), the market appears to have reached a plateau for the time being, reports Batic Exchange.
VLCC
The Very Large Crude Carrier (VLCC) market experienced a general softening across all routes this past week.
- Middle East Gulf to China (TD3C): The rate for a 270,000 metric tonne (mt) shipment eased back by 3 points to WS61.15. This corresponds to a round-trip Time Charter Equivalent (TCE) of $42,278.
In the Atlantic market:
- West Africa/China (TD15): The rate for a 260,000 mt shipment slipped by 2 points to WS61.94, resulting in a round voyage TCE of $43,883 per day.
- US Gulf/China (TD22): This route saw a significant tumble, with the rate for a 270,000 mt shipment decreasing by another $253,667 to $7,898,833. This translates to a daily round-trip TCE of $41,072.
Suezmax
Suezmax owners have faced considerable pressure this week, with charterers gaining a distinct advantage in the market.
- The rate for the 130,000 mt Nigeria/UK Continent voyage (TD20) tumbled by 8 points to WS78.89, which translates to a daily round-trip Time Charter Equivalent (TCE) of approximately $30,000.
- Similarly, the TD27 route (Guyana to UK Continent basis 130,000 mt) has fallen by 6 points to WS78.33, yielding a daily round-trip TCE of $29,247 based on discharge in Rotterdam.
- The TD6 route for 135,000 mt from CPC to Augusta has been lowered to WS103.95, resulting in a daily TCE of around $39,500. However, reports after Thursday indicated that WS100 was seen twice, suggesting that this downward trend is likely to continue. The upcoming UK holiday on Monday might provide a temporary halt to this decline.
- In the Middle East, the rate for the TD23 route of 140,000 mt from the Middle East Gulf to the Mediterranean (via the Suez Canal) eased by 2 points to almost WS85.
Aframax
North Sea Market (80,000 mt Cross-UK Continent route – TD7): In the North Sea, the recent downward trend was halted, and owners managed to regain some lost ground. The rate for the TD7 route, specifically from Hound Point to Wilhelmshaven, increased by 11 points to reach just over WS125. This translates to a daily round-trip Time Charter Equivalent (TCE) of approximately $38,600.
Mediterranean Market (80,000 mt Cross-Mediterranean – TD19): The Mediterranean market also saw a turnaround, with the rate for the 80,000 mt Cross-Mediterranean route (TD19), from Ceyhan to Lavera, recovering by 14 points to nearly WS135. This indicates a daily round-trip TCE of about $31,800.
Across the Atlantic Market: Conversely, the Atlantic market experienced another reversal, with rates dropping across all routes:
- East Coast Mexico/US Gulf (TD26) and Covenas/US Gulf (TD9): For both the 70,000 mt East Coast Mexico/US Gulf route (TD26) and the 70,000 mt Covenas/US Gulf route (TD9), rates fell by approximately 18 points to just below WS130. This translates to a daily round-trip TCE of around $23,900 for TD26 and $24,400 for TD9, respectively.
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Source: Baltic Exchange
