VLCC and Suezmax Rates See Welcome Upturn, Bolstering Crude Tanker Earnings

By
Mfame Editor
-
17

Last week has brought a positive shift in the LR2 (Long Range 2) tanker freight market in the Middle East Gulf (MEG), with rates recovering and then stabilizing after an earlier dip. LR2s are product tankers, typically in the 80,000 to 120,000 DWT range, used for transporting refined petroleum products.

VLCC Market

The resurgence in the VLCC market continued modestly last week.

  • The rate for the 270,000 mt Middle East Gulf to China trip (TD3C) increased by 3.55 points to WS53.2, resulting in a daily round-trip Time Charter Equivalent (TCE) of $32,978.
  • In the Atlantic, the rate for the 260,000 mt West Africa/China (TD15) route remained in the low WS50s, currently marked at WS53.06, yielding a round voyage TCE of $33,525 per day.
  • The 270,000 mt US Gulf to China (TD22) route saw a significant gain, increasing by $280,556 to $7,527,778, which translates to a daily round-trip TCE of $37,618.

Suezmax Market

The Suezmax market also experienced a welcome upturn in freight levels.

  • The rate for the 130,000 mt Nigeria/UK Continent voyage (TD20) climbed by 8.11 points since last Friday to WS89.22, translating to a daily round-trip TCE of $32,192.
  • The TD27 route (Guyana to UK Continent basis 130,000 mt) added approximately 4.25 points to WS82.42, resulting in a daily round-trip TCE just under $30,000.
  • The TD6 route (135,000 mt CPC/Augusta) was raised by 6.72 points to WS97.11, giving a daily TCE of slightly over $31,300.
  • In the Middle East, the TD23 route (140,000 mt Middle East Gulf to the Mediterranean via the Suez Canal) edged up by 1 point to WS96.11.

Aframax Market

The Aframax market presented a mixed picture, with some routes softening.

  • In the North Sea, the rate for the 80,000 mt Cross-UK Continent route (TD7) decreased by another 3.75 points to close to WS114.58, resulting in a daily round-trip TCE of approximately $25,419 (basis Hound Point to Wilhelmshaven).
  • In the Mediterranean, the 80,000 mt Cross-Mediterranean (TD19) route managed to recover last week, adding 8.5 points to WS136.22, showing a daily round-trip TCE of a little over $30,000 (basis Ceyhan to Lavera).
  • Across the Atlantic, rates softened for short local voyages. The 70,000 mt East Coast Mexico/US Gulf route (TD26) dropped 12.22 points to WS129.72, and the 70,000 mt Covenas/US Gulf route (TD9) is now assessed at WS129.06 (a drop of 12.44 points). Both translate into a daily round-trip TCE in the low $20,000s.
  • The trans-Atlantic 70,000 mt US Gulf/UK Continent (TD25) route was assessed 15.28 points lower to WS124.72, giving a round trip TCE (basis Houston/Rotterdam) of about $25,100 per day.

Did you subscribe to our daily Newsletter?

It’s Free Click here to Subscribe!

Source: Baltic Exchange