Shipping Market Update Freight Rates And Vessel Performance Overview

This week, MEG LR2s have seen a notable increase in demand, driving freight levels up sharply.

• TC1 75kt MEG/Japan index surged 21.67 points to WS151.67.
• TC20 90kt MEG/UK-Continent assessment climbed by $512,500 to $3.89m, with $3.9m reported on subjects twice.
• In the Mediterranean/East, LR2 TC15 freight exceeded $3m, reaching $3.1m.

LR1 (Large Range 1 Tankers)

• The MEG LR1 market also strengthened significantly.
• The TC5 55kt MEG/Japan index increased by +30.94, reaching WS167.5.
• A TC8 65kt MEG/UK-Continent voyage rose from $2.66m to $3.1m.
• However, LR1’s in the UK-Continent remained subdued, with TC16 60kt ARA/West Africa index falling slightly by 1.84 points to WS110.94.

MR (Medium Range Tankers)

• MR’s in the MEG stayed stable this week, with the TC17 35kt MEG/East Africa index fluctuating between WS205 – WS210.
• UK-Continent MR rates have shown gradual improvement:
  • TC2 37kt ARA/US-Atlantic coast rose from WS138.75 to WS159.06.
  • The TC19 37kt ARA/West Africa also gained 18 points to WS179.69.
• In the US Gulf, MR rates have been weak, with TC14 38kt US-Gulf/UK-Continent remaining at WS85 and TC18 38kt US-Gulf/Brazil flat at WS135-WS137.5.
  • However, a Caribbean run on TC21 38kt US-Gulf/Caribbean saw an improvement of $11,000 to $414,286.
  • The Atlantic Triangulation Basket TCE increased from $17,176 to $19,667.

Handymax

• In the Baltic Clean Handymax market, Mediterranean routes held steady with the TC6 index around WS180.
• UK-Continent routes saw a positive uptick, with the TC23 30kt index rising by 19.72 points to WS195.28.

VLCC (Very Large Crude Carriers)

• The VLCC market nudged up slightly.
  • The Middle East Gulf to China (TD3C) rate increased by 1 point to WS58.55, leading to a round-trip TCE of $39,305.
  • The West Africa/China (TD15) route rose by 3 points to WS59.63, giving a round-trip TCE of $41,173.
  • The US Gulf/China (TD22) rate gained $32,500 to $7,292,500, with a daily TCE of $35,834.

Suezmax

• Suezmax owners have seen a strong week:
  • The Nigeria/UK Continent (TD20) rate rose by 10 points to WS98.75, yielding a daily TCE of $42,938.
  • The Guyana/UK Continent (TD27) rate climbed by 8 points to WS94.17, giving a TCE of $39,899.
  • The CPC/Med (TD6) route saw a 23.5-point increase to WS123.30, with a round-trip TCE of $57,961.
  • In the Middle East, the TD23 140,000mt route rose 1 point to WS92.5.

Aframax

• In the North Sea, the 80,000mt Cross-UK Continent (TD7) rate remained flat at WS107.5, resulting in a daily TCE of $26,000.
• In the Mediterranean, the 80,000mt Cross-Mediterranean (TD19) rate fell by 5 points to WS115.39, showing a daily TCE of $26,200.
• Across the Atlantic, the East Coast Mexico/US Gulf (TD26) and Covenas/US Gulf (TD9) routes slipped 1-2 points to WS126.11 and WS123.13, respectively.
  • The US Gulf/UK Continent (TD25) route saw a 10-point drop to WS131.11, with a TCE of $29,402.

This week’s market indicates positive growth in key sectors such as LR2s and Suezmaxes, while stability remains in the MR market. However, rates for smaller vessels like Aframax and LR1s continue to show fluctuating trends.