Tanker rates fluctuate; LR2 and Suezmax improved on strong demand, while VLCC and Aframax faced significant rate declines due to holiday disruptions and subdued activity across regions, reports Baltic Exchange.
LR2
LR’s in the MEG saw a welcome uptick in activity and freight levels this week. Although rates have not climbed aggressively, sentiments have remained strong. TC1 75kt MEG/Japan hopped up 18.33 points to WS119.44 and for a run on TC20 90kt MEG/UK-Continent the index improved $268,125 to $3.36m.
West of Suez, Mediterranean/East LR2’s on TC15 improved an optimistic $250,000 this week to $2.94m.
LR1
In the MEG, LR1’s improved more modestly that the LR2’s. TC5 55kt MEG/Japan added 3.44 points to WS113.75. Similarly on a trip to the UK-Continent on TC8 65kt MEG/UK-Continent levels hover around the $3.6m mark all week.
On the UK- Continent, the TC16 60kt ARA/West Africa index ticked up to WS118.33 this week (+WS3.89).
MR
MR’s in the MEG remained in balance this week. The TC17 35kt MEG/East Africa index has, as a result, continued around the WS170-175 level.
UK-Continent MR’s appear to have paused after last week’s improvements. Subsequently TC2 37kt ARA/US-Atlantic coast and TC19 37kt ARA/West Africa rates come under pressure with TC2 currently pegged at WS132.19 (-WS8.44) and TC19 at 2.82 points lower than last week at WS164.06.
A short week in the US Gulf due to Thanksgiving. TC14 38kt US-Gulf/UK-Continent was assessed 7.15 points lower by Wednesday to WS143.21. TC18 the 38kt US Gulf/Brazil index is also 1.43 points lighter than last week at WS206.79. A short run on TC21 38kt US-Gulf/Caribbean also lost 12% of its value this week was last pegged at $493,571 prior to the break.
Handymax
In the Mediterranean, Handymax’s spiked with TC6 spiking from WS195.94 to WS292.78 mid-week only to then recorrect back down n to WS240 by time of writing.
VLCC
The VLCC market took a hit this week with rates falling in all regions. The 270,000 mt Middle East Gulf to China trip (TD3C) lost 8 points to WS45.35 which gives a daily round-trip TCE of $23,850 basis the Baltic Exchange’s vessel description.
In the Atlantic market, the rate for 260,000 mt West Africa/China (TD15) slipped 4 points to WS52.50 (corresponding to a round voyage TCE of $31,849 per day), while the rate for 270,000 mt US Gulf/China (TD22) dropped by $115,000 to $7,333,000 (a daily round trip TCE of $34,383).
Suezmax
Owners had the upper hand this week, and rates have improved. In West Africa, the 130,000 mt Nigeria/UK Continent voyage (TD20) rose 11 points to WS85.67, meaning a daily round-trip TCE of $30,508. The TD27 route (Guyana to UK Continent basis 130,000 mt) didn’t move by as much, only gaining 3 points to WS77.5 by close of play on Wednesday, which translates into a daily round trip TCE just shy of $25,000 basis discharge in Rotterdam. With the USA Thanksgiving holiday, this route will only come alive again next week. For the TD6 route of 135,000 mt CPC/Med, owners managed to put the rate up by 7 points to the WS97.5/100 region (showing a daily TCE of just under $33,000 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) remained flat around the WS91 mark.
Aframax
In the North Sea, the rate for the 80,000 mt Cross-UK Continent route (TD7) lost a couple of points early in the week and has settled at WS125 (giving a daily round-trip TCE of $28,555 basis Hound Point to Wilhelmshaven).
In the Mediterranean market, the rate for 80,000 mt Cross-Mediterranean (TD19) gained 4 points to WS145 level (basis Ceyhan to Lavera, that shows a daily round trip TCE of just over $38,000).
Across the Atlantic, although quiet in the latter part of the week, rates tumbled due in part to the inactivity caused by the Thanksgiving break. By close of business on Wednesday, rates for the 70,000 mt East Coast Mexico/US Gulf route (TD26) and the 70,000 mt Covenas/US Gulf route (TD9) had fallen by 13-14 points to the WS95 level, showing a daily round-trip TCE of about $10,000 and $9,600, respectively. The rate for the trans-Atlantic route of 70,000 mt US Gulf/UK Continent (TD25) lost 10 points to WS120 (a round trip TCE basis Houston/Rotterdam of $22,419 per day).
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Source: Balticexchange
