This week’s global tanker market witnessed a mixed performance across vessel classes. Clean tankers showed varied trends, with LR1s experiencing significant rate drops while MRs in the US Gulf showed signs of recovery. On the crude side, rates declined for most vessel types across major global routes, although certain voyages like the VLCC US Gulf/China run offered some relief. Below is a detailed breakdown by vessel category.
Clean Tankers: LR1s Slide, MRs Show Mixed Signals
The LR1 segment took a notable hit this week. In the Middle East Gulf (MEG), the TC5 route to Japan dropped 13 points to WS134.06, and the westbound TC8 voyage declined by about $150,000 to $2.714M. Meanwhile, MRs showed a divergent trend. The MEG-East Africa route (TC17) gained slightly, while rates for transatlantic voyages from the UK Continent to the US and West Africa dropped. In contrast, US Gulf MRs bounced back with gains across multiple routes, including TC14 and TC18, reflecting improved demand.
Crude Tankers: Broad Weakness Despite Pockets of Strength
Crude tanker rates generally softened this week. VLCC routes from the Middle East and West Africa to China dropped slightly, though the US Gulf to China route saw a gain of over $400,000. Suezmax routes saw sharper declines, particularly the Nigeria-UK Continent and Guyana-UKC voyages, which lost 10 and 9 points respectively. The Mediterranean’s CPC-Augusta route was more stable, though slightly down. Aframax routes also recorded modest declines, especially in the Mediterranean and the Americas, reflecting seasonal adjustments and reduced chartering activity.
Regional Snapshot: MEG Struggles, US Gulf Recovers
Middle East Gulf routes faced consistent pressure across both clean and crude categories, with rates falling across nearly all major lanes except for a minor uptick in MR freight. European and Mediterranean markets showed signs of wear, with Handymax and Aframax rates notably down. Conversely, the US Gulf region displayed resilience in the MR segment, posting moderate gains that offset earlier losses, hinting at a rebound in product movement and chartering interest.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Baltic Exchange