Tankers saw declines across LR2, LR1, MR, and Handymax markets, with significant rate drops in VLCCs, Suezmaxes, and Aframaxes, reflecting overall market softness and downward pressure, reports balticexchange.
LR2
LR’s in the MEG were subject to increased downward pressure again this week. The 75Kt MEG/Japan TC1 index dipped 15.28 points to WS135.28. The 90kt MEG/UK-Continent of TC20 similarly was knocked down to $4.2 million (down $356,250). West of Suez, Mediterranean/ LR2’s on TC15 dropped $641,000 below $4 million to $3.49 million.
LR1
In the MEG, LR1’s followed their larger counterparts this week. The 55kt MEG/Japan index of TC5 dropped 17.18 points to WS138.13 while the 65kt MEG/UK-Continent of TC8 came down $285,350 to $3.45 million. On the UK-Continent, the 60Kt ARA/West Africa TC16 index continued along in the mid-WS140s but with a softening sentiment.
MR
MR’s in the MEG held at their current floor of WS200 and the TC17 index even saw an incremental improvement of 4.29 points to WS205. UK-Continent MR’s took a dramatic downturn this week. The 37kt ARA/US-Atlantic coast of TC2 was hammered won 48.53 points to WS153.13 ($15,252/day round trip Baltic TCE). The 37kt ARA/West Africa (TC19) was also cut down to the tune of 48.75 points leaving the index at WS172.81.
The USG MR’s remained relatively sedate this week, with the relevant indices only fluctuating a small amount by comparison to their behaviour over the last 18 months. TC14 (38kt US-Gulf/UK-Continent) dropped 10 points to WS150. The 38kt US-Gulf/Brazil of TC18 lost 7.5 points to WS220 and the 38kt US-Gulf/Caribbean TC21 went from being marked at $695,000 to $622,000.
Handymax
In the Mediterranean, Handymaxes had their freight levels slashed for the second week in a row. The TC6 index went from WS156.39 to WS120.83. In Northwest Europe, the TC23 30kt Cross UK-Continent came of 15% to WS163.61.
VLCC
The VLCC market appears to have almost bottomed out now. The 270,000 mt Middle East Gulf to China trip eased one point to WS45.43, which corresponds to a daily round-trip TCE of $22,429 basis the Baltic Exchange’s vessel description.
In the Atlantic market, the rate for 260,000 mt West Africa/China also slipped a point to WS51.44 (which shows a round voyage TCE of $29,464/day), whilst the rate for 270,000 mt US Gulf/China was reduced by $175,000 to $6,870,000 ($29,597/day round trip TCE).
Suezmax
Suezmaxes in West Africa were relatively flat this week with the rate for 130,000 mt Nigeria/UK Continent assessed on Thursday at WS76.67 (a daily round-trip TCE of $24,601). The new route (TD27) from Guyana to UK Continent basis 130,000mt was assessed on Thursday at WS73.5, a reduction of 5 points week-on-week, giving a daily round trip TCE of $22,348 basis discharge in Rotterdam.
In the Mediterranean and Black Sea region the 135,000 mt CPC/Med route, dropped 8 points to WS88 (showing a daily TCE of $24,042 round-trip). In the Middle East, the rate for 140,000 mt Middle East Gulf to the Mediterranean (via the Suez Canal) remained around the WS84-85 mark.
Aframax
In the North Sea, the rate for the 80,000mt Cross-UK Continent held at the WS120 level again (translating to a daily round-trip TCE of $24,310 basis Hound Point to Wilhelmshaven).
In the Mediterranean market the rate for 80,000mt Cross-Mediterranean lost most of the gains made recently, falling 13 points to WS132.44 (basis Ceyhan to Lavera that shows a daily round trip TCE of $31,125).
Across the Atlantic, the market continues to weaken, although not as sharply as seen recently. For the 70,000mt East Coast Mexico/US Gulf (TD26) the rate fell five points to WS113.75 (a daily TCE of $16,638 round trip) while the rate for 70,000mt Covenas/US Gulf (TD9) also dipped by five points to WS113.13 (a round-trip TCE of $16,599/day). The rate for the trans-Atlantic route of 70,000mt US Gulf/UK Continent (TD25) eased by four points to WS124.44 (a round trip TCE basis Houston/Rotterdam of $23,861/day).
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Source: balticexchange
