LR2: Market Resilience And Recovery Signals In Maritime Freight

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LR2

LR2 freight levels in the MEG looked to have reached a floor this week. The 75kt MEG/Japan TC1 index bottomed out at WS144 and has since returned to WS151. The 90kt MEG/UK-Continent TC20 trip to the UK-Continent similarly reached a floor of $4.38 million mid-week then climbing back up to $4.57 million at time of writing.

West of Suez, Mediterranean/East LR2 freight remained in the doldrums this week seen in the TC15 index going from $4.81 million to $4.51 million.

LR1

In the MEG, LR’1’s followed the behavior of their larger sisters this week. The 55kt MEG/Japan index of TC5 stopped at the WS166 level and is currently pegged at WS173. The 65kt MEG/UK-Continent of TC8 levelled off at $3.89 million to then tick back up to $3.97 million.

On the UK-Continent, the 60kt ARA/West Africa TC16 trip trundled along in the mid-low WS170’s all week.

MR

MR’s in the MEG have been reportedly stable over the last few days. The TC17 index is currently marked at WS328 after halting its previous downturn at WS317 earlier in the week.

Up in the UK-Continent MR’s lost steam this week. The 37kt ARA/US-Atlantic coast of TC2 index dipped from WS231 to WS173. On a TC19 run (37kt ARA/West Africa) the index shed 50 points to WS197.

The USG MR’s made a significant resurgence this week following a plethora of enquiry into the market. TC14 (38kt US-Gulf/UK-Continent) shot up 70 points to WS226.43. The 38kt US Gulf/Brazil on TC18 also jumped to WS307 (+W75). The 38kt US-Gulf/Caribbean TC21 added 62% to its value and is currently at $1.14 million. The Baltic round TCE for the trip climbed by 121% to $46,000 per day as a result.

Handymax

In the Mediterranean, Handymax’s continued along the TC6 index at WS320 all week, still returning $57,000 per day Baltic round trip.

Up in North West Europe, the TC23 30kt Cross UK-Continent dipped 21.11 points to WS238.33.

VLCC

The market sharply rose early in the week, and now sentiment is lacking. The rate for the 270,000 mt Middle East Gulf to China climbed to WS74.55 on Tuesday easing back to last be assessed at WS71.5 which is a week-on-week gain of 11 points and corresponds to a daily round-trip TCE of $48,914 basis the Baltic Exchange’s vessel description.

In the Atlantic market, the 260,000 mt West Africa/China route experienced something similar, insofar as rose to WS75.05 and has gradually fallen back to an overall week on week gain of nine points at WS72 which shows a round voyage TCE of $49,796 per day. The rate for 270,000 mt US Gulf/China ascended to $9.4 million and has since slipped back to $9,083,333 (a weekly rise of $172,222) providing a round-trip daily TCE of $44,881.

Suezmax

Suezmaxes in West Africa remained around the WS102.5-103 level for the 130,000 mt Nigeria/UK Continent trip (a daily round-trip TCE of about $38,000). In the Mediterranean and Black Sea region the rate for 135,000 mt CPC/Med eased about one point to the WS108 level (showing a daily TCE of $38,200 round-trip). In the Middle East, the rate for 140,000 mt Middle East Gulf to the Mediterranean (via the Suez Canal) eased eight points to WS97.5 basis routing via the Suez Canal.

Aframax

In the North Sea, the rate for the 80,000 mt Cross-UK Continent has fallen a solitary point to about WS125 (showing a round-trip daily TCE of around $26,300 basis Hound Point to Wilhelmshaven).

In the Mediterranean market the rate for 80,000 mt Cross-Mediterranean has managed to recover 44 points to WS151.72 (basis Ceyhan to Lavera, that shows a daily round trip TCE of just over $39,000).

Across the Atlantic, the Stateside market has risen slightly. The rate for 70,000 mt East Coast Mexico/US Gulf (TD26) rose 2.5 points WS180 (a daily TCE of $42,929 round trip) while the rate for 70,000 mt Covenas/US Gulf (TD9) firmed 2 points to WS174.69 (a round-trip TCE of $38,260 per day). The rate for the trans-Atlantic route of 70,000 mt US Gulf/UK Continent (TD25) has 9 points added to the WS200 level (a round trip TCE basis Houston/Rotterdam of approximately $48,700 per day).

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Source : Baltic exchange