MR And Handymax Sectors: Pressure From Larger Vessel Markets

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LR2

In the MEG this week LR2 freight continued to crumble this week. The TC1 rate for 75kt MEG/Japan dropped a further 26 points to WS162 and the 90kt MEG/UK-Continent TC20 voyage also dipped to the tune of circa $640,000 to $4.9 million West of Suez, Mediterranean/East LR2’s saw a 10% drop of $441,000 to $3.83 million.

LR1

In the MEG, LR’1 freight also remained on a downward trajectory this week. The 55kt MEG/Japan index of TC5 went from WS224 to WS189 exactly 1 month on from when it breached over WS200. The 65kt MEG/UK-Continent of TC8 shed another $614,000 to $3.99 million.

On the UK-Continent, the 60kt ARA/West Africa lost eight points to go sub WS200 and is currently at WS198. At these levels earnings are still $37,000 per day on Baltic description round trip.

MR

MR’s in the MEG also felt the pressure from the larger vessel markets in the region. TC17 35kt MEG/East Africa lost 29 points to WS280.

On the UK-Continent MR’s were subject to downward retesting this week. The 37kt ARA/US-Atlantic coast of TC2 came down 17 points to WS184. On a TC19 run (37kt ARA/West Africa) the index also had a 26 points cut out from it, to its current level of WS212.

As with the Continent the USG MR’s have come down over the last week. TC14 (38kt US-Gulf/UK-Continent) lost another 11 points of value down to WS194. The 38kt US Gulf/Brazil on TC18 went from WS291 to WS279 and the 38kt US-Gulf/Caribbean of TC21 went below $1m dropping 15% down to $950,000.

Handymax

In the Mediterranean, 30kt Cross Mediterranean (TC6) had a hefty 53 point (22%) drop to WS190.

Up in North West Europe, the TC23 30kt Cross UK-Continent improved 11 points to WS228.  Taking the Baltic round trip TCE to just under $30,000 per day.

VLCC

The market slacked off slightly this week. The rate for 270,000 mt Middle East Gulf to China lost three points to WS61.95 which corresponds to a daily round-trip TCE of $38,241 basis the Baltic Exchange’s vessel description.

In the Atlantic market, the 260,000 mt West Africa/China trip eased by 2.5 points to WS62.72 which shows a round voyage TCE of $39,629 per day The rate for 270,000 mt US Gulf/China is assessed $65,500 lower at $8,399,500 translating into a round-trip daily TCE of $39,716.

Suezmax

The Suezmax market in West Africa was boosted by a tightening position list and a busy US export market enticing West Africa players away. For the 130,000 mt Nigeria/UK Continent voyage rates steadily rose 22 points over the week to WS129 (a daily round-trip TCE of $52,733). In the Mediterranean and Black Sea region rates climbed about 13 points to a little over WS122.5 for the 135,000 mt CPC/Mediterranean trip (showing a daily TCE of about $47,810 round-trip). In the Middle East, the rate for 140,000 mt Middle East Gulf to the Mediterranean (via the Suez Canal) was assessed flat at just below WS100.

Aframax

In the North Sea, the rate for the 80,000 mt Cross-UK Continent recovered nine points to WS140.07 (a daily round-trip TCE of $39,297 basis Hound Point to Wilhelmshaven).

In the Mediterranean market the rate for 80,000 mt Cross-Mediterranean shot up over 34 points to WS203.56 (basis Ceyhan to Lavera, that shows a daily round trip TCE of $64,575).

Across the Atlantic, the Stateside market has continued climbing once again. The rate for 70,000 mt East Coast Mexico/US Gulf (TD26) has had 81 points added to last Friday’s rate, standing now at WS240.63 (a daily TCE of $69,025 round trip) and the rate for 70,000 mt Covenas/US Gulf (TD9) is now 75 points higher than a week ago at WS 228.75 (a round-trip TCE of $58,648 per day). The rate for the trans-Atlantic route of 70,000 mt US Gulf/UK Continent (TD25) is 35 points firmer week-on-week at WS224.44 (a round trip TCE basis Houston/Rotterdam of $56,454 per day).

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Source : balticexchange