This week has seen a gradual softening in the MEG (Middle East Gulf) LR2 (Long Range 2) tanker market. The TC1 index for 75,000-tonne cargoes from the MEG to Japan has dropped significantly from WS250 to WS130.28, reports Baltic Exchange.
VLCC
The Very Large Crude Carrier (VLCC) market continued its downward trajectory this week.
- The rate for the 270,000 metric tonne (mt) voyage from the Middle East Gulf to China (TD3C) decreased by 3 Worldscale (WS) points, settling at WS54.10. This corresponds to a round-trip Time Charter Equivalent (TCE) of $36,533 per day, which is approximately $1,100 per day lower than the previous week.
- In the Atlantic market, the rate for the 260,000 mt West Africa to China route (TD15) saw a slight decrease of just over one WS point, reaching WS58.19. This gives a round voyage TCE of $41,981 per day, about $700 per day higher than a week ago.
- The rate for the 270,000 mt US Gulf to China voyage (TD22) has been steadily declining throughout the week, falling by $352,500 since last Friday. It is currently assessed at $8,260,000, resulting in a daily round-trip TCE of $46,629, which is approximately $1,000 per day lower than last Friday.
Suezmax
Suezmax owners have successfully leveraged demand this week. The rate for the 130,000 mt Nigeria/UK Continent voyage (TD20) increased by 9 WS points to WS104.72, resulting in a daily round-trip TCE of $48,650. Similarly, the rate for the TD27 route (Guyana to UK Continent, 130,000 mt basis) climbed 7 WS points to WS103.61, translating to a daily round-trip TCE of $47,818 based on discharge in Rotterdam.
Recent issues affecting the CPC (Caspian Pipeline Consortium) appear to have been resolved, and export volumes from this region have been maintained. Consequently, the rate for the TD6 route (135,000 mt CPC/Med) has remained steady at approximately WS130, showing a daily TCE of around $65,500 for a round trip.
Aframax
In the Aframax market:
- In the North Sea, the rate for the 80,000 mt Cross-UK Continent route (TD7) has stabilized, holding within the WS135-137.5 range. This translates to a daily round-trip TCE of $53,221 based on a voyage from Hound Point to Wilhelmshaven.
- In the Mediterranean, the rate for the 80,000 mt Cross-Mediterranean route (TD19) has shown a recovery, increasing by 8 WS points to WS178.39 (based on a voyage from Ceyhan to Lavera), resulting in a daily round-trip TCE of just under $60,646.
- Across the Atlantic, the market saw improvement throughout the week until Thursday, but now appears to be gradually declining. However, rates remain above last week’s levels. The rates for the 70,000 mt East Coast Mexico/US Gulf route (TD26) and the 70,000 mt Covenas/US Gulf route (TD9) are approximately 4 WS points higher than last Friday, at WS225.83 and WS221.56, respectively. This equates to a daily round-trip TCE of $68,309 for TD26 and $61,039 for TD9.
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Source: Baltic Exchange
