LR2 freight in the MEG continued to track downward this week. The TC1 75kt MEG/Japan index dropped from WS143.06 to WS137.5. A TC20 90kt MEG/UK-Continent trip also lost $162,500 of value to $3.85 million, which at time of writing remains last done.
VLCC Market Firms Up
The VLCC market has seen a firming of rates this week. The rate for the Middle East Gulf to China (TD3C) route for a 270,000 metric ton vessel increased by 11 points to WS67.05, resulting in a daily round-trip Time Charter Equivalent (TCE) of close to $50,300. In the Atlantic, the West Africa to China (TD15) rate for a 260,000 metric ton vessel gained 10 points to WS65.25, with a round-trip TCE of $48,537/day. The US Gulf to China (TD22) route for 270,000 metric tons also improved, rising by $442,500 to $7,652,500, yielding a daily round-trip TCE of about $39,700.
Suezmax Market Rebounds
The Suezmax sector has rebounded across several key routes. The rate for the Nigeria to UK Continent (TD20) voyage of 130,000 metric tons improved by more than five points to WS110, which translates to a daily round-trip TCE of about $49,500. The Guyana to UK Continent (TD27) route for 130,000 metric tons also increased by 10 points to WS107.5, with a TCE of just under $47,900.
The CPC to Augusta (TD6) route for 135,000 metric tons continued its upward momentum, adding 13 points to nearly WS145, giving a daily TCE of almost $74,000. The Middle East Gulf to the Mediterranean (TD23) route for 140,000 metric tons recovered over five points to WS102.11.
Aframax Market Shows Mixed Performance
The Aframax market presented a split performance this week, with varying trends across different regions.
- North Sea: The rate for the Cross-UK Continent (TD7) route gained eight points to just under WS140, with a round-trip TCE of close to $50,300.
- Mediterranean: The rate for the Cross-Mediterranean (TD19) route slipped by six points to almost WS140, resulting in a round-trip TCE of about $33,500.
- Americas: The market was competitive on shorter routes but more appealing for transatlantic voyages. The East Coast Mexico to US Gulf (TD26) route lost nearly 26 points to WS155, and the Covenas to US Gulf (TD9) route was reduced by almost 24 points to about WS148. Conversely, the transatlantic route from the US Gulf to the UK Continent (TD25) gained eight points to WS153.61, giving a round-trip TCE of $37,407/day.
- Vancouver Exports: The Vancouver to China (TD28) route regained $50,000, reaching $1,825,000, while the Vancouver to US West Coast (TD29) route was slightly firmer.
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Source: Baltic Exchange
