Baltic Exchange has issued the tanker report for the 50th week of this year. The report of 15th December 2023 provides valuable insight into this week’s tanker market dealings, freight rates, and charter activities.
Clean
LR2
LR’s in the MEG saw freight climb for the second week with plenty of activity working the balance of 2023 cargoes this week. The 75Kt MEG/Japan TC1 index gained another 18.61 points to end up at WS149.44. The 90kt MEG/UK-Continent TC20 run to the UK-Continent also hopped up $562,500 to $4,156,250.
West of Suez, Mediterranean/East LR2’s on TC15 also optimistically climbed $283,000 this week to $3.7 million.
LR1
In the MEG, LR1’s followed the path of their larger compatriots. The 55kt MEG/Japan index of TC5 jumped up 21.57 points to WS151.88 and the 65kt MEG/UK-Continent on TC8 ascended to the tune of $285,000 to $3.14 million.
On the UK-Continent, the 60Kt ARA/West Africa TC16 index held stable with and incremental 5.31 point climb to WS203.75.
MR
MR’s in the MEG looked to have peaked early this week at around the WS243 mark for a TC17 run the index has since dipped back down to WS234.29.
UK-Continent MR’s were muted early this week and the Baltic indices both began to drop, although by differing amounts. The 37kt ARA/US-Atlantic coast of TC2 bottomed out around WS190 and following some activity later in the week has since rebounded up to WS197 at time of writing. On a TC19 run (37kt ARA/West Africa) the index held stable in the mid-WS230’s.
The USG MR’s took a significant downturn this week as we understand fewer cargoes and the tonnage list replenishing with vessels played a significant role. TC14 (38kt US-Gulf/UK-Continent) shed just under 20% of its value losing 53 points to WS214.29. The 38kt US Gulf/Brazil on TC18 similarly came off from WS374.64 to WS310.71. A 38kt US-Gulf/Caribbean TC21 trip dropped $496,428 to $1.29 million, more than quarter of its value.
The MR Atlantic Triangulation Basket TCE went from $57,987 to $48,387.
Handymax
In the Mediterranean, Handymax’s held resolute all week around the WS265 level.
Up in northwest Europe, the TC23 30kt Cross UK-Continent had another upturn this week, with the index hopping up 25 points to WS240.83.
VLCC
The market lost ground this week across the whole sector. For the 270,000 mt Middle East Gulf to China route, the rate devalued about 10 points to WS55.92, which shows a corresponding daily round-trip TCE of $35,716 basis the Baltic Exchange’s vessel description. The 280,000 mt Middle East Gulf to US Gulf trip (via the cape/cape routing) is now assessed three points lower than a week ago at the WS32 level.
In the Atlantic market, the rate for 260,000 mt West Africa/China dropped nine points to WS56.50 (which shows a round voyage TCE of $37,172/day), while the rate for 270,000 mt US Gulf/China plummeted $1,133,333 to $8,127,778 (which translates to a round-trip TCE of $33,662/day).
Suezmax
Suezmaxes in West Africa fell back this week, with assessments for 130,000 mt Nigeria/UK Continent route dropping four points to WS97.18 (a daily round-trip TCE of $37,756). In the Mediterranean and Black Sea region, the 135,000 mt CPC/Med route eased off three points to WS131.50 (showing a daily TCE of $61,032 round-trip). In the Middle East, the rate for 140,000 mt Middle East Gulf to the Mediterranean recovered a point to a shade above WS68.
Aframax
In the North Sea, the rate for the 80,000 mt Cross-UK Continent route slackened off another four points to WS136.07 (showing a round-trip daily TCE of $40,925 basis Hound Point to Wilhelmshaven). In the Mediterranean market the rate for 80,000 mt Cross-Mediterranean softened by six points to WS120.75 (basis Ceyhan to Lavera, showing a daily round trip TCE of $27,627).
On the other side of the Atlantic, the market has almost steadied. The rate for 70,000 mt East Coast Mexico/US Gulf (TD26) has slipped one point to WS132.50 (a daily round-trip TCE of $27,365) and the 70,000 mt Covenas/US Gulf rate eased two points to WS127.5 (a round-trip TCE of $24,842/day). The rate for the trans-Atlantic route of 70,000 mt US Gulf/UK Continent conversely climbed five points to WS156.25 (a round trip TCE basis Houston/Rotterdam of $37,881/day).
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Source: Baltic Exchange
