VLCC Market Takes A Downward Turn While Suezmax Remains Flat




MEG LR2 saw a freight spike this week despite a mid-week bank holiday in Singapore. Benefiting from tonnage availability thinning the TC1 rate for 75,000 mt MEG/Japan jumped 19.44 points to WS270 and the 90kt MEG/UK-Continent TC20 voyage went from $7.23 million to $7.84 million.

West of Suez, Mediterranean/East LR2’s began to improve this week. The TC15 index hopped up $116,000 to $3.63 million.


In the MEG, LR1 freight followed suit of its larger siblings. The 55,000 mt MEG/Japan index of TC5 went from WS273.13 to WS293.13 following a WS295 fixture reported late in the week. The 65kt MEG/UK-Continent of TC8 floated between the $6 – 6.1 million mark.

On the UK-Continent, a 60,000 mt ARA/West Africa run on TC16 leveled off around the WS155 mark.


MRs in the MEG began to move up optimistically this week. The TC17 35,000 mt MEG/East Africa is marked at WS415.71. Up 18.57 points from last week.

On the UK-Continent MRs were tested down this week. The 37,000 mt ARA/US-Atlantic coast of TC2 shed 16.7 points to WS174.69 tanking the Baltic TCE down to $18,925 / day round trip. In the TC19 run (37,000t ARA/West Africa) the index also went from WS212.5 to WS195.31.   

USG MR’s ultimately managed to creep up this week although it was reported this was largely on sentiment anticipation. TC14 (38,000 mt US-Gulf/UK-Continent) ticked up five points to WS143.57. The 38kt US Gulf/Brazil on TC18 similarly climbed 4.29 points to WS212.86 and the 38kt US-Gulf/Caribbean of TC21 despite peaking mid-week around $642,000 is currently sat at $612,000.


In the Mediterranean, 30,000 mt Cross Mediterranean (TC6) dropped 21.11 points to WS225. 

Up in Northwest Europe, the TC23 30,000 mt Cross UK-Continent also weakened, seen in the index going from WS250 to WS 222.22.


The VLCC market took a turn downward this week with the rate for the benchmark 270,000 mt Middle East Gulf to China at WS68.48 which provides a daily round-trip TCE of $47,578 basis the Baltic Exchange’s vessel description.

In the Atlantic market, a similar situation unfolded. The 260,000 mt West Africa/China weakened by three points to WS71.44 showing a round voyage TCE of $51,384 per day, and the rate for 270,000 mt US Gulf/China fell by $265,000 to $9,530,000 corresponding to a round-trip daily TCE of $50,951.


The Suezmax market in West Africa remained flat this week, with the rate for 130,000 mt Nigeria/UK Continent trip having rebounded last Friday and hovered around the WS110 level (a daily round-trip TCE of $44,092). In the Mediterranean and Black Sea region, the rate gained nine points to WS122.55 for the 135,000 mt CPC/Mediterranean trip (showing a daily TCE of $49,957 round-trip). In the Middle East, the rate for 140,000 mt Middle East Gulf to the Mediterranean (via the Suez Canal) improved two points to a fraction above WS97.


In the North Sea, the rate for the 80,000 mt Cross-UK Continent increased eight points to WS153.21 (a daily round-trip TCE of a shade under $52,000 basis Hound Point to Wilhelmshaven).

In the Mediterranean market the rate for 80,000 mt Cross-Mediterranean was boosted by 47 points to WS244.44 (basis Ceyhan to Lavera, that shows a daily round trip TCE of $87,342).

Across the Atlantic, the market eased. For the 70,000 mt East Coast Mexico/US Gulf (TD26) the rate fell 20 points to WS130 (a daily TCE of about $22,300 round trip) and the rate for 70,000 mt Covenas/US Gulf (TD9) was also 20 points lower than a week ago at WS129.38 (a round-trip TCE of $22,123 per day). The rate for the trans-Atlantic route of 70,000 mt US Gulf/UK Continent (TD25) fell by another seven points to WS158.33 (a round trip TCE basis Houston/Rotterdam of $35,164 per day), further discouraging ballasters from Europe.

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Source: BalticExchange