The tanker shipping market has seen mixed movements across different vessel sizes and routes this week. While VLCC rates remained largely stable, the Suezmax and Aframax sectors experienced more significant fluctuations, with some routes seeing a decline and others a notable increase.
VLCC
The LR2 freight market in the Middle East Gulf (MEG) weakened due to reduced demand. The TC1 route from MEG to Japan saw its index drop from WS151.94 to WS144.17, while the TC20 route to the UK-Continent lost $125,000 in value, now at $4.03 million. In contrast, the VLCC market was calm with no major changes. The rate for the 270,000 mt Middle East Gulf to China route (TD3C) held steady around WS56, yielding a daily round-trip TCE of just over $37,300. In the Atlantic, the West Africa/China route (TD15) eased slightly to WS55, with a TCE of about $36,500 per day, while the US Gulf to China route (TD22) saw an improvement of $127,500, reaching nearly $7.2 million.
Suezmax
The Suezmax sector saw a significant drop in Atlantic markets, while the Black Sea and Middle East remained relatively stable. The Nigeria/UK Continent voyage (TD20) fell 17 points to WS105, giving a daily round-trip TCE of about $47,000. Similarly, the Guyana to UK Continent route (TD27) collapsed by 20 points to WS98, translating to a TCE of a little under $42,000. The CPC/Augusta route (TD6) held firm at WS130, with a daily TCE of almost $63,000. The Middle East Gulf to the Mediterranean route (TD23) slipped a point to WS97.
Aframax
The Aframax market showed a mix of gains and losses. In the North Sea, the Cross-UK Continent route (TD7) gained 10 points to just over WS130, with a TCE of close to $42,700 per day. In the Mediterranean, the Cross-Mediterranean route (TD19) eased slightly to WS147. Across the Atlantic, the market improved week-on-week, with the East Coast Mexico/US Gulf route (TD26) regaining 20 points to WS186.11, yielding a daily TCE of about $48,300.
The Covenas/US Gulf route (TD9) also recovered almost 18 points to over WS174, for a TCE of around $41,300. The trans-Atlantic route from the US Gulf to the UK Continent (TD25) slipped 2 points to WS148.33, with a TCE of $35,589 per day. For Vancouver exports, the Vancouver to China route (TD28) eased by $62,500 to $1.8 million, and the Vancouver to Pacific Area Lightering point route (TD29) lost 7 points, dropping to WS127.5.
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Source: Baltic Exchange
