VLCC Market Continues Its Downward Trend Amidst Suezmax Market’s Upward Turn

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LR2

MEG LR2’s saw freight levels fall off again this week. The TC1 rate for 75kt MEG/Japan sunk 30 points to WS240.56 and the 90kt MEG/UK-Continent TC20 voyage went from $7.79 million to $6.8 million.

West of Suez, Mediterranean/East LR2’s improved for the second week on week. The TC15 index jumped up $429,000 to $4.08 million.

LR1

In the MEG, LR1 freight also took some downward pressure. The 55kt MEG/Japan index of TC5 went from WS293.75 to WS265. The 65kt MEG/UK-Continent of TC8 shed $635,000 to $5.34 million.

On the UK-Continent, a 60kt ARA/West Africa run on TC16 shot up 17 points to WS173.89.

MR

MRs in the MEG were also down significantly this week. The TC17 35kt MEG/East Africa is marked at WS380, down 34.29 points, following a Thursday reported fixture at this level. 

On the UK-Continent MR’s made a welcome resurgence this week. The 37kt ARA/US-Atlantic coast of TC2 got back up above the WS200 mark to WS201.88 (+23.44) tanking the Baltic TCE up to $24,203 per day round trip. In the TC19 run (37kt ARA/West Africa) the index also went from WS199.06 to WS225.63.   

USG MRs stole the show this week with a serious flurry of prompt inquiry driving the market upwards. TC14 (38kt US-Gulf/UK-Continent) shot up 103.21 points to WS245. The 38kt US Gulf/Brazil on TC18 similarly added 99.29 points to WS315. The 38kt US-Gulf/Caribbean of TC21 jacked up 141%, an increase of 882,000 to $1.51 million, with higher numbers for the run reported on subjects at the time of writing.

Handymax

In the Mediterranean, 30kt Cross Mediterranean (TC6) improved 58.11 points this week to reach WS285 and then level off there for the moment.  

Up in North West Europe, the TC23 30kt Cross UK-Continent improved a modest 4.17 points to WS225 where it also looks to have plateaued for the moment.

VLCC

The VLCC market continued a downward trend this week with the rate for the benchmark 270,000 mt Middle East Gulf to China falling 10 points to WS57.70 which provides a daily round-trip TCE of $35.305 basis for the Baltic Exchange’s vessel description.

In the Atlantic market, a similar situation was apparent. The 260,000 mt West Africa/China was also weakened by 10 points to WS60.22 showing a round voyage TCE of $38,450 per day, and the rate for 270,000 mt US Gulf/China fell by $480,000 to $8,925,000 corresponding to a round-trip daily TCE of $45,583.

Suezmax

The Suezmax market in West Africa took an upward turn this week, helped by an improving US Gulf and Caribbean market. The rate for a 130,000 mt Nigeria/UK Continent trip rose 4 points to WS114.89 (a daily round-trip TCE of $46,294). In the Mediterranean and Black Sea region, the rate gained a meager point to WS124 for the 135,000 mt CPC/Mediterranean trip (showing a daily TCE of $50,833 round-trip). In the Middle East, the rate for 140,000 mt Middle East Gulf to the Mediterranean (via the Suez Canal) gained five points to WS103.72.

Aframax

In the North Sea, the rate for the 80,000 mt Cross-UK Continent dipped by three points to a fraction above WS150 (a daily round-trip TCE of about $49,500 basis Hound Point to Wilhelmshaven).

In the Mediterranean market, the rate for 80,000 mt Cross-Mediterranean lost 13 points this week to WS236.39 (basis Ceyhan to Lavera, which shows a daily round trip TCE of $83,037).

Across the Atlantic, excitement has started with the roller-coaster ride climbing and rates improving across all the Baltic routes. For the 70,000 mt East Coast Mexico/US Gulf (TD26) the rate recovered 32 points to WS161.25 (a daily TCE of about $35,857 round trip) and the rate for 70,000 mt Covenas/US Gulf (TD9) was almost 29 points firmer than a week ago at WS156.56 (a round-trip TCE of $32,375 per day). The rate for the trans-Atlantic route of 70,000 mt US Gulf/UK Continent (TD25) rose by 31 points to WS191.11 (a round trip TCE basis Houston/Rotterdam of $46,406 per day). While these are healthy returns, further improvement is expected as there is still not enough encouragement for ballasters from Europe.

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Source: BalticExchange