Navigating The Waves: A Weekly Recap Of LR2 Freight Trends



In the MEG this week LR2 freight plateaued after last week’s positive resurgence. The TC1 rate for 75kt MEG/Japan dipped a modest three points to WS208 and the 90kt MEG/UK-Continent TC20 voyage went from $6.45 million to $6.33 million.

West of Suez, Mediterranean/East LR2’s improved a little with the TC15 index adding $33,000 to its value up to $3.53 million.


In the MEG, LR1 freight levels were also relatively flat. The 55kt MEG/Japan index of TC5 hovered around the WS230’s to WS240’s. The 65kt MEG/UK-Continent of TC8 also floated around the high $4 million’s with it currently pegged at $4.95 million.

On the UK-Continent, the 60kt ARA/West Africa was significantly busier this week, regrettably for owners this did not stop the TC16 index dropping from WS185 to WS181.


MR’s in the MEG showed strong firming for the second week on week. The TC17 35kt MEG/East Africa index shot up 103 points to WS413 with the Baltic TCE for the run improving by 48% to over $50,000per day round trip.

On the UK-Continent MR’s had another week of overbearing downward pressure. The 37kt ARA/US-Atlantic coast of TC2 dropped another ten points across the week to WS169. The TC19 run (37kt ARA/West Africa) the index also dropped 20 points to WS190. The Baltic round trips for the runs are now around $17,000 and $21,000 per day respectively.

USG MR’s have had another hard week with no sign of recent downward trajectory stopping. TC14 (38kt US-Gulf/UK-Continent) came off another 12 points down to WS136. The 38kt US Gulf/Brazil on TC18 went from WS236 to WS218 and the 38kt US-Gulf/Caribbean of TC21 dropped by 13% across the week to $569,000.


In the Mediterranean, 30kt Cross Mediterranean (TC6) recorrected down after last week’s freight spike, the index lost 54 points to WS242 Up in North West Europe, the TC23 30kt Cross UK-Continent dipped to WS223 (-23).


The market stagnated this week. The rate for 270,000 mt Middle East Gulf to China remained at just below WS60 which corresponds to a daily round-trip TCE of about $35,700 basis the Baltic Exchange’s vessel description.

In the Atlantic market, the 260,000 mt West Africa/China trip eased by another point to WS61.33 which shows a round voyage TCE of around $38,200 per day. The rate for 270,000 mt US Gulf/China is assessed $35,000 lower at $8,580,000 translating into a round-trip daily TCE of $41,090.


The Suezmax market in West Africa remains soft with the 130,000 mt Nigeria/UK Continent trip losing 2.5 points during the week to WS102.61 (a daily round-trip TCE of $37,791). In the Mediterranean and Black Sea region the rate stuck at the WS114-115 level for the 135,000 mt CPC/Mediterranean trip (showing a daily TCE of about $42,000 round-trip). In the Middle East, the rate for 140,000 mt Middle East Gulf to the Mediterranean (via the Suez Canal) was assessed two points lower at just below WS95.


In the North Sea, the rate for the 80,000 mt Cross-UK Continent eased 1.5 points to WS141.07 (a daily round-trip TCE of $40,434 basis Hound Point to Wilhelmshaven).

In the Mediterranean market the rate for 80,000 mt Cross-Mediterranean has steadied at the WS184-185 level (basis Ceyhan to Lavera, that shows a daily round trip TCE of about $55,600).

Across the Atlantic, the Stateside market has continued to soften with the rate for 70,000 mt East Coast Mexico/US Gulf (TD26) having lost 15 points to WS161.25 (a daily TCE of $34,981 round trip) and the rate for 70,000 mt Covenas/US Gulf (TD9) has also been reduced by 15 points to WS154.69 (a round-trip TCE of $30,699 per day). The rate for the trans-Atlantic route of 70,000 mt US Gulf/UK Continent (TD25) conversely gained three points to WS179.72 (a round trip TCE basis Houston/Rotterdam of $41,331 per day).

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Source : balticexchange