Rates for large-range (LR2) tankers shipping freight from the Middle East (MEG) saw a positive trend this week. The cost to move 75,000 tons of cargo from the MEG to Japan (TC1 index) rose by 18.34 points, reaching a rate of WS147.78. Similarly, a 90,000-ton trip from the MEG to the UK/Continent (TC20) increased from $3.78 million to $3.93 million.
VLCC
Rates for Very Large Crude Carriers (VLCCs) softened this week, but they might be reaching their lowest point. The cost for a 270,000 metric ton trip from the Middle East Gulf to China (TD3C) dropped by 2 points to WS43.30, which equates to a daily round-trip TCE of $22,048. In the Atlantic, the rate for a 260,000 metric ton journey from West Africa to China (TD15) also fell by 1 point to WS47.63, with a round-trip TCE of $27,549 per day. For the 270,000 metric ton route from the US Gulf to China (TD22), the rate decreased by over $310,000 to just under $6.6 million, resulting in a daily round-trip TCE of about $30,000.
Suezmax
Suezmax rates appear to be stabilizing. The rate for a 130,000 metric ton voyage from Nigeria to the UK Continent (TD20) increased by 2 points to WS78.78, which translates to a daily round-trip TCE of about $28,500. The route from Guyana to the UK Continent (TD27), also for 130,000 metric tons, saw a small gain of 1 point to WS76.96, bringing the daily round-trip TCE to roughly $27,000. Meanwhile, the 135,000 metric ton route from CPC to Augusta (TD6) remained stable at WS97, with a daily TCE of just over $32,800. In the Middle East, the rate for the 140,000 metric ton trip from the Middle East Gulf to the Mediterranean (TD23) held steady at the WS95-96 level.
Aframax
In the North Sea, the rate for the 80,000 metric ton cross-UK Continent route (TD7) rose by 2.5 points to WS117.5, resulting in a daily round-trip TCE of $28,394. In the Mediterranean, the rate for an 80,000 metric ton cross-Mediterranean journey (TD19) recovered by 10 points to WS140, which shows a daily round-trip TCE just under $32,000. Across the Atlantic, vessel owners felt more confident, pushing rates up on both shorter and longer routes.
The 70,000 metric ton route from East Coast Mexico to the US Gulf (TD26) climbed about 25 points to WS140, with a daily round-trip TCE of roughly $26,300. The 70,000 metric ton trip from Covenas to the US Gulf (TD9) also improved by about 22 points to WS135, translating to a daily round-trip TCE of around $24,500. The trans-Atlantic route for 70,000 metric tons from the US Gulf to the UK Continent (TD25) recovered by approximately 27 points to the WS147 mark, giving a round-trip TCE of just over $33,600 per day.
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Source: Baltic Exchange
