Declining Freight Levels For MRs On UK-Continent Routes


The BCTI finished the week at 799, down from 831 the previous week.

Rates for MRs in the US have seen increases with plenty of cargoes available for those vessels positioned to take advantage. TC14, 38,000 US Gulf / UK-Continent finished the week up at WS206.43 (+WS70), TC18 the MR US Gulf / Brazil increased from WS212.86 to end the week at WS305 (+WS92.14), and TC21, MR US Gulf / Caribbean again offered increased returns to owners with the index increasing from US$680,000 to US$1,017,857 (+US$337,857).

On the UK-Continent, MRs freight levels have been steadily decreasing with TC2 37,000 UK-Continent / US Atlantic Coast finishing the week at WS154.38, (-WS9.06). TC19 37,000 Amsterdam to Lagos followed the same pattern and finished at WS175.31 (-WS9.39).

TC16, 60k Amsterdam / Offshore Lomé continued its steady decline this quarter and finished the week at WS152.22 (-WS5.56).

West of Suez, rates on the LR2’s, TC15, 80,000 Mediterranean / Japan, also continued to come off ending the week at $3,525,000, a decline of -$291,667 from the week before.

In the Middle East Gulf, freight rates for LR’s have barely moved with TC1, 75,000 Middle East Gulf / Japan, finishing the week at WS200.83 (+WS0.27) at a round trip TCE of $49,306/day. This lacklustre movement is reflected in MRs with TC17, 35,000 Middle East Gulf / East Africa, starting the week at WS337.14 and ending up at WS335.36 (-WS 1.78) at a round trip TCE of $39,018/day.

LR1s have also seen similar unspectacular moves over the last week with TC5, 55,000 Middle East Gulf / Japan, creeping up to WS240 from WS229.38 (+WS 10.62). On TC8, Middle East Gulf / UK Continent, rates increased slightly throughout the week finishing at 71.10 $/mt (a lumpsum equivalent of $4.62m).


The VLCC market gently eased further this week with the rate for the benchmark 270,000mt Middle East Gulf to China slipping a point from last Friday to WS49.90, which provides a daily round-trip TCE of $26,482 basis the Baltic Exchange’s vessel description.

In the Atlantic, the market was similarly weaker. The 260,000mt West Africa to China was down another point for the week at WS56.22 showing a round voyage TCE of $32,817 per day, and the rate for 270,000mt US Gulf to China fell by $225,000 to $7,975,000 corresponding to a round-trip daily TCE of $37,460.


The Suezmax market in both West Africa and the Mediterranean/Black Sea region was flat this week. The rate for 130,000mt Nigeria to UK Continent held at the WS112 level (a daily round-trip TCE of around $44,000) and the 135,000mt CPC/Mediterranean route remained close to WS122 (showing a daily TCE of a little above $48,000 round-trip). In the Middle East, the rate for 140,000mt Middle East Gulf to the Mediterranean (via the Suez Canal) is assessed 3.5 points lower than last Friday at just below WS95.


In the North Sea, the rate for the 80,000mt Cross-UK Continent shed four points to WS170 (a daily round-trip TCE of $63,274 basis Hound Point to Wilhelmshaven).

In the Mediterranean market the rate for 80,000mt Cross-Mediterranean fell another 7.5 points to WS147.5 (basis Ceyhan to Lavera, that shows a daily round trip TCE of $37,414).

Across the Atlantic, negative waves were also being felt. For the 70,000mt East Coast Mexico/US Gulf (TD26) the rate slipped five points to WS235.63 (a daily TCE of $67,666 round trip) and the rate for 70,000mt Covenas/US Gulf (TD9) was also five points softer at WS225.63 (a round-trip TCE of $58,528/day). The rate for the trans-Atlantic route of 70,000mt US Gulf/UK Continent (TD25) fell back nine points to WS200.56 (a round trip TCE basis Houston/Rotterdam of $49,240/day).

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Source: balticexchange