Crude Tanker Market Weekly Report LR Segments Soar, MR Atlantic Hits New Low

By
Mfame Editor
-
12

The clean and crude tanker markets experienced contrasting dynamics this week. LR segments surged in the Middle East, buoyed by improved demand, while MRs in the Atlantic basin plummeted, pushing TCEs to their lowest point since mid-2023. Meanwhile, VLCC rates recovered, Suezmax held steady, and Aframax markets diverged regionally.

Clean Tankers

LR2: Robust Gains in MEG and Steady West of Suez

  • In the Middle East Gulf (MEG), LR2 rates surged:

    • TC1 (75kt MEG/Japan) rose from WS112.78 to WS141.67, lifting TCEs above $30,000/day.

    • TC20 (90kt MEG/UK-Continent) added $575,000, closing at $3.83 million.

  • Mediterranean to East LR2s also edged up by $55,000, reaching $3 million.

LR1: Upward Momentum in MEG, Flat in Atlantic

  • MEG LR1s saw a sharp rise:

    • TC5 (55kt MEG/Japan) gained 26.25 points to WS160.63.

    • TC8 (65kt MEG/UK-Continent) increased from $2.72m to $3.09m.

  • On the UK-Continent, LR1 rates remained mostly flat, with TC16 (60kt ARA/West Africa) dipping slightly below WS120.

MR: Atlantic Struggles as MEG Holds Firm

  • In the MEG, TC17 (35kt MEG/East Africa) firmed to WS223, maintaining gains through the week.

  • In contrast, UK-Continent MRs fell:

    • TC2 (37kt ARA/US-Atlantic Coast) declined 8.44 points to WS117.19, pulling TCEs below $10,000/day to $9,493.

    • TC19 (37kt ARA/West Africa) also slid to WS136.39.

  • US Gulf MRs continued to deteriorate:

    • TC14 (38kt USG/UKC) fell to WS83.21.

    • TC18 (USG/Brazil) dropped nearly 23 points to WS136.79.

    • TC21 (USG/Caribbean) declined $105,000 to $425,000 (–19.8%).

  • The MR Atlantic Triangulation Basket TCE plummeted to $13,573, the lowest since June 2023.

Handymax: Modest Gains in Mediterranean

  • TC6 (30kt Cross-Mediterranean) rose from WS131.94 to WS141.94.

  • On the UK-Continent, TC23 (30kt Cross-UKC) remained flat near WS130

Crude Tankers

VLCC: Rates Rebound, Except US Gulf

  • MEG/China (TD3C) rose 5 points to WS64.35, pushing round-trip TCEs to $45,668/day.

  • West Africa/China (TD15) climbed 2 points to WS63.19 (TCE: $44,743/day).

  • US Gulf/China (TD22) dropped sharply by $352,500 to $8.2 million, with a $43,043/day TCE.

Suezmax: Rates Stabilize Globally

  • Nigeria/UKC (TD20) held at WS86.5–87.5 (TCE: $34,500/day).

  • Guyana/UKC (TD27) eased slightly to WS82.5–83.5 (TCE: $32,171/day).

  • CPC/Augusta (TD6) remained steady around WS110 (TCE: $43,800/day).

  • MEG/Med (TD23) hovered at WS87.5–88.

Aframax: Regional Divergence

  • North Sea (TD7) declined 10 points to WS113.75 (TCE: $26,600/day).

  • Mediterranean (TD19) took a heavy hit, dropping 27 points to WS117.72 (TCE: $22,261/day).

  • In the Americas:

    • TD26 (EC Mexico/USG) firmed to WS154.17 (TCE: $34,300/day).

    • TD9 (Covenas/USG) increased to WS151.88 (TCE: $32,700/day).

    • TD25 (USG/UKC) eased 2 points to WS148.33 (TCE: $35,251/day).

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Source: BALTIC EXCHANGE