This week, the Very Large Crude Carrier (VLCC) markets were particularly noteworthy in the industry press, with other crude tanker segments seeing a mix of leveling off, slight decreases, and dramatic gains in specific routes.
VLCC Market Overview
The VLCC markets were dominated by stability and minor drops in rates. The Middle East Gulf to China (TD3C, 270,000 mt) rate held steady around WS100, yielding a daily round-trip Time Charter Equivalent (TCE) of approximately $90,000/day. The Atlantic market saw a marginal drop in the West Africa/China (TD15, 260,000 mt) route, decreasing to WS93.13 for a round voyage TCE of $81,034. The largest drop was in the US Gulf export market to China (TD22), where the rate decreased by over $1,000,000 to nearly $11,340,000, resulting in a daily round-trip TCE of about $71,527.
Suezmax Market Overview
The Suezmax sector generally leveled off this week in the Atlantic and Middle East. The Nigeria/UK Continent voyage (TD20, 130,000 mt) saw a slight drop to WS110.83, which translates to a daily round-trip TCE of $49,933. The Guyana to UK Continent route (TD27, 130,000 mt) was flat at around WS111-112, giving a daily round-trip TCE of about $50,000. Similarly, the CPC/Augusta route (TD6, 135,000 mt) was unwavering at WS142.5, giving a daily TCE of about $72,000. The Middle East Gulf to the Mediterranean route (TD23, 140,000 mt) saw a slight increase to WS102.89.
Aframax Market Overview
The Aframax market showed mixed results, with stability in some areas and dramatic firming in others. The North Sea’s Cross-UK Continent route (TD7, 80,000 mt) remained flat at WS130, giving a daily round-trip TCE of over $40,500. In the Mediterranean, the Cross-Mediterranean route (TD19, 80,000 mt) saw an incremental rise to WS142.83, translating to a daily round-trip TCE of $33,796.
Across the Atlantic, the US Gulf/UK Continent route (TD25, 70,000 mt) was assessed significantly higher by 15.28 points to just under WS165, giving a round trip TCE of about $41,500 per day. Conversely, the East Coast Mexico/US Gulf (TD26) and Covenas/US Gulf (TD9) routes both lost points, settling at WS148.89 (TCE of $32,070) and WS145 (TCE of just over $30,000), respectively. Finally, Vancouver exports saw notable gains, with the Vancouver to China route (TD28, 80,000 mt) gaining $343,750 to reach $2,900,000, and the Vancouver to Pacific Area Lightering point (TD29, 80,000 mt) rising 8.75 points to break the WS165 mark and finish at WS166.25.
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Source: Baltic Exchange
