This week saw a slight improvement in the Middle East Gulf (MEG) Long Range 2 (LR2) tanker market. The TC1 index for 75,000-tonne cargoes traveling from the MEG to Japan experienced a modest increase, rising from WS117.22 to WS126.67, reports Baltic Exchange.
VLCC
The rate for the benchmark 270,000 mt Middle East Gulf to China voyage (TD3C) has increased by 5 Worldscale points since the Easter period, now standing at WS70.93. This corresponds to a round-trip Time Charter Equivalent (TCE) of $55,010 per day.
In the Atlantic market, the 260,000 mt West Africa to China route (TD15) has also seen an upward movement, with rates rising by 4 Worldscale points to WS68.41, resulting in a round voyage TCE of $52,418 per day.
The 270,000 mt US Gulf to China route (TD22) has shown a steady recovery, with the lump sum rate now reaching $8,347,667. This represents a significant increase of $237,942 compared to the levels just before the Easter break, translating to a daily round-trip TCE of $45,941.
These gains across key VLCC routes indicate a strengthening market sentiment and improved earnings for owners in this sector.
Suezmax
The Suezmax market in West Africa continued to show strength, with owners successfully pushing rates upwards. The rate for the 130,000 mt Nigeria/UK Continent voyage (TD20) saw a significant climb of 9 Worldscale points, reaching WS120.28. This translates to a healthy daily round-trip TCE of $57,338. The TD27 route (Guyana to UK Continent basis 130,000 mt) also saw an increase, albeit a more modest 4 points, reaching WS115.28, which equates to a daily round trip TCE of $54,152 based on discharge in Rotterdam.
Issues at the CPC terminal appear to have subsided, as the rate for the TD6 route (135,000 mt CPC/Med) has remained steady throughout the week at around WS135, demonstrating a robust daily TCE of approximately $67,939 for a round-trip voyage.
Aframax
In the North Sea, the rate for the 80,000 mt Cross-UK Continent route (TD7) has seen a slight increase of 2 Worldscale points, reaching just below WS140. This translates to a daily round-trip TCE of $55,065 based on a voyage from Hound Point to Wilhelmshaven.
Conversely, in the Mediterranean market, the rate for the 80,000 mt Cross-Mediterranean route (TD19) has experienced a downward slide, dropping 8 Worldscale points to WS181.11 (based on a Ceyhan to Lavera voyage), resulting in a daily round trip TCE of approximately $61,100.
Across the Atlantic, the recent peak in rates appears to have been reached, and a downward trend has now commenced. For the 70,000 mt East Coast Mexico/US Gulf route (TD26) and the 70,000 mt Covenas/US Gulf route (TD9), rates have fallen significantly by 28 and 27 Worldscale points respectively since Thursday, April 17th, now standing at approximately WS193 and WS190. These levels correspond to a daily round-trip TCE of around $52,500 and $48,100.
The rate for the trans-Atlantic route of 70,000 mt US Gulf/UK Continent (TD25) has also seen a substantial reduction, with 17 Worldscale points being cut away this week, bringing the rate down to WS176.39. This gives a round trip TCE based on a Houston/Rotterdam voyage of $46,507 per day.
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Source: Baltic Exchange
