Downward Pressure On MEG LR2’s: Significant Drops In TC1 And TC20 Rates LR2

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LR2

MEG LR2’s were subject to downward pressure this week. The TC1 rate for 75Kt MEG/Japan dropped 17.5 points to WS180.56 and the 90kt MEG/UK-Continent TC20 voyage is went from $6.08m to $5.89m. West of Suez, Mediterranean/East LR2’s continued to be sedate this week. The TC15 index remained level around $3.5m.

LR1

In the MEG, LR1’s were seemingly unaffected by the drop affecting their larger sisters this week. The 55kt MEG/Japan index of TC5 trundled along in the WS230’s and the 65kt MEG/UK-Continent of TC8 went from $4.61m to $4.85m. On the UK-Continent, a 60Kt ARA/West Africa run on TC16 came down 8% to WS142.22 taking the Baltic TCE for the run to $35,306/day round trip.

MR 

MR’s in the MEG eventually came down, holding early in the week at around the WS340 level but a mid-week fixture much lower drove the index down 23.21 points to WS312.86 at present. On the UK-Continent MR’s began to optimistically resurge this week. The 37kt ARA/USAtlantic coast of TC2 hopped up 30 points to WS182.19 or a Baltic round trip TCE of $19,944/day. The TC19 run (37kt ARA/West Africa) also went from WS174.06 to WS202.19. As USG MR’s continued their firm charge upwards this week. TC14 (38kt US-Gulf/UKContinent) shot up 37.14 points to WS238.57. The 38kt US Gulf/Brazil on TC18 went from WS300.71to WS342.14 and the 38kt US-Gulf/Caribbean of TC21 jumped up 40% to $1.45m returning $65,000/day on Baltic description round trip TCE. The MR Atlantic Triangulation Basket TCE climbed 28% to $46,085.

Handymax

In the Mediterranean, 30kt Cross Mediterranean (TC6) climbed back up to the tune of 37.5 points to its current mark of WS182.5. In northwest Europe, the TC23 30kt Cross UK-Continent also hopped up from WS164.72 to WS177.22.

VLCC

The VLCC market remained relatively stable this week, with the rate for the benchmark 270,000mt Middle East Gulf to China climbing a modest 0.15 points to WS49.7, which gives a daily round-trip TCE of $26,135 basis the Baltic Exchange’s vessel description.

In the Atlantic, the market was very similar to the Middle East Gulf. The 260,000mt West Africa to China ultimately climbed to WS55.34 (+0.38) showing a round voyage TCE of $32,876/day, and the rate for 270,000mt US Gulf to China dropped by $180,000 to $7,760,000 making a round-trip daily TCE of $35,654.

Suezmax

The Suezmax market in West Africa and the Mediterranean/Black Sea region have been flat/soft this week. The rate for 130,000mt Nigeria to UK Continent fell from the WS112.5 level to WS109.83 (a daily round-trip TCE of around $42,859) and the 135,000mt CPC/Mediterranean route held resolute around the WS120 mark (showing a daily TCE of $47,709 round-trip). In the Middle East, the rate for 140,000mt Middle East Gulf to the Mediterranean (via the Suez Canal) was stable at around the WS94-95 mark.

Aframax

In the North Sea, the rate for the 80,000mt Cross-UK Continent dropped another 10.41 points to WS157.92 (a daily round-trip TCE of $53,679 basis Hound Point to Wilhelmshaven).

In the Mediterranean market the rate for 80,000mt Cross-Mediterranean picked up 6.77 points this week to WS153.33 off the back of some improved activity, (basis Ceyhan to Lavera, that shows a daily round trip TCE of $40,450).

Across the Atlantic, negative sentiment, regrettably for owners, continued this week. For the 70,000mt East Coast Mexico/US Gulf (TD26) the rate sunk 45.62 points to WS176.88 (a daily TCE of $42,032 round trip) and the rate for 70,000mt Covenas/US Gulf (TD9) was 40 points softer at WS174.38 (a round-trip TCE of $38,861/day). The rate for the trans-Atlantic route of 70,000mt US Gulf/UK Continent (TD25) fell another 14.72 points to WS172.78 (a round trip TCE basis Houston/Rotterdam of $39,580/day).

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Source: balticexchange