Tanker markets faced broad declines this week, particularly in the Middle East, while the Atlantic exhibited mixed results. Aframax and Suezmax saw global drops, while VLCC rates held steady in the East, reports Baltic Exchange.
LR2
LR2’s in the MEG came back under downward pressure this week, with several reports of demand easing up. TC1 dropped 13.05 points to WS120.28 mark (A Baltic TCE of around $22,000 / day). Meanwhile, a run to the UK-Continent on TC20 shed around $231,000 of its value to the $3.96m level, with the round trip TCE around the $36,000 / day mark via Suez.
West of Suez, Mediterranean/East LR2’s despite a dormant market, saw a $16,667 improvement on TC15 taking the index up to $2.9m.
LR1
In the MEG, LR1’s were also put under pressure this week after starting positively. The TC5 index was ultimately squashed by 10 points to WS128.13 and similarly for a trip to the UK-Continent on TC8, dipped by $213,000 to $3.35m.
On the UK- Continent, TC16 remained flat again with the index floating around the WS108-109 level.
MR
MEG MR’s came under the same pressure that the LR’s did this week. The TC17 run as a result dipped 31.42 points to WS204.29.
UK-Continent MR’s saw enough activity to keep the indices bubbling along at the same levels. TC2 has held in the WS90-95 region with TC19 also floating around WS125-130 level.
USG MR’s trajectory slowed and plateaued this week. TC14’s overall value lost 6.07 points to WS129.29 and TC18 weakened by 9.64 points to WS174.29. Meanwhile a run to the Caribbean on TC21 sunk back was cut down 22% to $394,286 this impacted the TCE for the run by 64% and is now only $3,900/day on a Baltic description round trip.
The MR Atlantic Triangulation Basket TCE dropped from $18,165 to $15,669.
Handymax
In the Mediterranean, Handymax’s were pushed down later in the week after holding out in the mid WS150’s for a few days, the TC6 index came down to WS148.61 (-11.11). Up on the UK-Continent, the TC23 index remained stable at the high WS130’s to low WS140’s all week.
VLCC
The VLCC market held at the levels reported last week in the East, while a mixed reaction was seen in the Atlantic. The 270,000 mt Middle East Gulf to China (TD3C) trip remained at the WS57 level which gives a daily round-trip TCE of about $35,100 basis the Baltic Exchange’s vessel description.
In the Atlantic market, the rate for 260,000 mt West Africa/China (TD15) ended the week 1 point up at WS62.83 (corresponding to a round voyage TCE of $41,447 per day), and the rate for 270,000 mt US Gulf/China (TD22) dropped by $162,500 to close the week at $8,032,500 (a daily round trip TCE of $38,581), although at time of writing $8,000,000 is reported to be on subjects for a trip the South Korea.
Suezmax
Suezmax rates slipped globally this week. In West Africa, the 130,000 mt Nigeria/UK Continent voyage (TD20) eased by a point to WS97.89, meaning a daily round-trip TCE of $36,675. The TD27 route (Guyana to UK Continent basis 130,000 mt), fell by 4 points to WS95.56, which translates into a daily round trip TCE of $35,092 basis discharge in Rotterdam. For the TD6 route of 135,000 mt CPC/Med, the charterers were able to gain a little more control, and the rate slid 2 points to WS112.65 (showing a daily TCE of $42,798 round-trip). In the Middle East, the rate for the TD23 route of140,000 mt Middle East Gulf to the Mediterranean (via the Suez Canal) is assessed 3 points lower than a week ago at WS101.94.
Aframax
In the North Sea, the rate for the 80,000 mt Cross-UK Continent (TD7) firmed by 19 points to the WS145 mark (giving a daily round-trip TCE of just over $44,300 basis Hound Point to Wilhelmshaven).
In the Mediterranean market, the rate for 80,000 mt Cross-Mediterranean (TD19) steadily fell by 11 points over the week to WS165.22 (basis Ceyhan to Lavera, that shows a daily round trip TCE of about $46,961).
Across the Atlantic, the market continues to decline. Rates for the 70,000 mt East Coast Mexico/US Gulf (TD26) route and the 70,000 mt Covenas/US Gulf (TD9) route fell about 20 points each to the WS151 level, showing a daily round-trip TCE of about $33,800 and $30,800, respectively. The rate for the trans-Atlantic route of 70,000 mt US Gulf/UK Continent (TD25) was reduced by 14 points to WS169.17 (a round trip TCE basis Houston/Rotterdam of $39,203 per day), which, for the time-being, should keep ballasters from Europe out of the equation.
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Source: Baltic Exchange
