The Very Large Crude Carrier (VLCC) market experienced a decline this week. Rates on key routes such as the Middle East Gulf to Japan (TC1) and the Middle East Gulf to UK-Continent (TC20) decreased. Similarly, rates on the Mediterranean to East route (TC15) also fell, reports Baltic Exchange.
VLCC Market
The VLCC market has come under pressure following the return of Asian charterers after the Lunar New Year holiday.
While rates initially increased in both the Atlantic and Middle East, they have subsequently eased. The 270,000 mt Middle East Gulf to China trip (TD3C) reached WS71 but has since declined to WS67.60, still 7 points higher than the previous week, translating to a round-trip TCE of $47,309 per day. Similarly, the rate for the 260,000 mt West Africa/China (TD15) route rose to WS71 but has now fallen to WS68.44, 7 points higher than the previous week, yielding a round voyage TCE of $48,618 per day.
The 270,000 mt US Gulf/China (TD22) route saw a peak at $9,400,000 on Tuesday but has since declined to $9,110,000, representing a $335,000 increase week-on-week and a daily round-trip TCE of $48,659.
Suezmax Market
The Suezmax market witnessed another busy week in the West. The 130,000 mt Nigeria/UK Continent voyage (TD20) experienced a significant increase, gaining 6.5 points to WS94.17, translating to a daily round-trip TCE of $38,639.
Similarly, the TD27 route (Guyana to the UK Continent) saw a substantial gain of 10 points, reaching WS88.06, resulting in a daily round-trip TCE of $34,616.
The TD6 route of 135,000 mt CPC/Med also saw a positive shift, increasing by 5 points to WS96.65, indicating a daily TCE of $34,961 round-trip.
In the Middle East, the rate for the TD23 route of 140,000 mt Middle East Gulf to the Mediterranean (via the Suez Canal) regained 1.5 points, reaching WS92.89.
Aframax Market
In the North Sea, the rate for the 80,000 mt Cross-UK Continent route (TD7) remained stable at WS107.5, resulting in a daily round-trip TCE of $26,719. The Mediterranean market witnessed a recovery in rates, with the 80,000 mt Cross-Mediterranean route (TD19) gaining 10 points to WS128.72, translating to a daily round-trip TCE of $32,246.
Across the Atlantic, the market experienced a slight increase in rates. The 70,000 mt East Coast Mexico/US Gulf route (TD26) and the 70,000 mt Covenas/US Gulf route (TD9) both saw a modest 1.5-2 point increase, settling at WS120, resulting in a daily round-trip TCE of slightly over $19,000 for each route. The trans-Atlantic route of 70,000 mt US Gulf/UK Continent (TD25) saw a more significant increase, gaining 6 points to WS132.78, resulting in a round-trip TCE of $28,712 per day.
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Source: Baltic Exchange
