LR2 Market: Recovery In MEG Rates, West Of Suez Weakens

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LR2

MEG LR2’s recovered nicely this week. The TC1 rate for 75,000 mt MEG/Japan hopped up 27.2 points to WS230 and the 90,000 mt MEG/UK-Continent TC20 voyage went from $6.02 million to $6.51 million. West of Suez, Mediterranean/East LR2’s weakened for the third week on week. The TC15 index dropped $125,000 to $3.2 million.

LR1

In the MEG, LR1 freight followed suit of the lager siblings. The 55,000 mt MEG/Japan index of TC5 went from WS222.5 to WS230.6. The 65,000 mt MEG/UK-Continent of TC8 climbed $221,000 to $5.1 million. On the UK-Continent, the 60,000 mt ARA/West Africa came off again this week. The TC16 index is currently down another 10.6 points to WS156.4.

MR

MR’s in the MEG began to resurge this week. The TC17 35,000 mt MEG/East Africa is pegged at WS386.4. Up 15 points from this time last week.

On the UK-Continent MR’s received a welcome (from owners) upturn this week. The 37,000 mt ARA/US-Atlantic coast of TC2 climbed 11.3 points to WS199.4 taking the Baltic TCE back over the $20,000 per day round trip. The TC19 run (37,000 mt ARA/West Africa) the index also went from WS198.4 to WS219.4.

USG MR’s continued their upward momentum this week. TC14 (38,000 mt US-Gulf/UK-Continent) jumped another 25.7 points to WS170.4. The 38,000 mt US Gulf/Brazil on TC18 similarly added 20.7 points to its value taking it to WS245.4 and the 38,000 mt US-Gulf/Caribbean of TC21 was jacked up another 40% to $860,714.

Handymax

In the Mediterranean, 30,000 mt Cross Mediterranean (TC6) pushed up another 20 points this week to WS265. Up in Northwest Europe, the TC23 30,000 mt Cross UK-Continent also improved significantly, settling at WS245 (+31.1).

VLCC

The market took another step up this week. The rate for 270,000 mt Middle East Gulf to China increased about 5.5 points to WS72 which translates to a daily round-trip TCE of $50,617 basis the Baltic Exchange’s vessel description.

In the Atlantic market, the 260,000 mt West Africa/China trip rose about seven points to WS74.72 showing a round voyage TCE of around $54,000 per day. The rate for 270,000 mt US Gulf/China climbed by $155,000 to $9,275,000 corresponding to a round-trip daily TCE of $47,548.

Suezmax

The Suezmax market in West Africa rebounded this week with the 130,000 mt Nigeria/UK Continent trip adding ten points to the rate at WS110.94 (a daily round-trip TCE of $43,592). In the Mediterranean and Black Sea region the rate hovered around the WS110-112.5 level for the 135,000 mt CPC/Mediterranean trip (showing a daily TCE of around $41,000 round-trip). In the Middle East, the rate for 140,000 mt Middle East Gulf to the Mediterranean (via the Suez Canal) remains around the WS95 mark.

Aframax

In the North Sea, the rate for the 80,000 mt Cross-UK Continent had another point added, settling around the WS144-145 level (a daily round-trip TCE of a shade over $44,500 basis Hound Point to Wilhelmshaven).

In the Mediterranean market the rate for 80,000 mt Cross-Mediterranean stayed flat at WS165-166 region (basis Ceyhan to Lavera, that shows a daily round trip TCE of about $46,700).

Across the Atlantic, the 70,000 mt East Coast Mexico/US Gulf (TD26) trip was relatively flat at around WS171.5 (a daily TCE of about $40,200 round trip) and the rate for 70,000 mt Covenas/US Gulf (TD9) has settled at last week’s level of WS166 (a round-trip TCE of a little over $35,800 per day). However, the rate for the trans-Atlantic route of 70,000 mt US Gulf/UK Continent (TD25) fell by 14 points since last Friday to WS183.06 (a round trip TCE basis Houston/Rotterdam of $43,261 per day), keeping ballasters from Europe at bay, for now.

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Source: balticexchange