The Baltic Briefing has issued the tanker report for the 2nd week of this year. The report dated 14th January 2022 provides a valuable insight into this week’s tanker market dealings, freight rates, and charter activities.
VLCC
The first full week back has yielded little change, with the increased flat rates for this year seeing the fixing rates reduced to maintain the floor.
280,000mt Middle East Gulf/USG
For 280,000mt Middle East Gulf/USG (via Cape of Good Hope) the market continues to be assessed at around the WS18.5 level.
270,000mt Middle East Gulf/China
Charterers have been busier this week on the 270,000mt Middle East Gulf/China route and rates have slipped less than a point to around the WS36.5 level (which shows a round trip TCE of minus $4.2k per day).
260,000mt West Africa/China
In the Atlantic there has been a handful of fixtures reported, reducing tonnage availability. The rate for 260,000mt West Africa/China has improved by a point to WS38.5 (a round-trip TCE of minus $735/day).
270,000mt USG/China
Meanwhile, the 270,000mt USG/China eased at the beginning of the week and has now started to recover, although last assessed at $4.75m (a round-trip TCE of minus $800/day), down $68k from a week ago.
Interestingly, today a Frontline vessel is being reported on subjects to Exxon at $4.9m.
Suezmax
130,000mt Nigeria/UKC rates
The rate for 130,000mt Nigeria/UKC has dropped 2.5 points this week to WS52.5 (a round-trip TCE of minus $1.3k/day).
135,000mt Black Sea/Augusta rates
135,000mt Black Sea/Augusta remains between WS60-62.5 (a round-trip TCE of minus $5.4k/day).
140,000mt Basrah/West Mediterranean market
In the 140,000mt Basrah/West Mediterranean market ENI, Shell, Petroineos and Exxon were reported to have taken ships on subjects and the rate has improved 7.5 points to just shy of WS33.
Aframax
80,000mt Ceyhan/Mediterranean market
The 80,000mt Ceyhan/Mediterranean market recovered some of the recent drop off, rising 15 points to WS97.5 level (a TCE of $6.6k/day).
80,000mt Hound Point/UKC rates
In Northern Europe, rates for 80,000mt Hound Point/UKC slipped three points to a fraction below WS95 (corresponding to a round-trip TCE of $minus $2.6k/day).
100,000mt Baltic/UKC rates
100,000mt Baltic/UKC rates have again fallen 10 points to between WS102.5 and WS105 (a TCE of $20.1k/day), with Ice-Class vessels still required in the Baltic region.
70,000mt US Gulf/UK Continent
Across the Atlantic the peak in rates was reached early on and are now gradually sliding back down. 70,000mt US Gulf/UK Continent is down 5.5 points to between 97.5-100 (a round-trip TCE of $5.7k/day).
70,000mt Covenas/US Gulf
In the local markets, the 70,000mt Covenas/US Gulf trip is assessed 3.5 points lower than a week ago at just under WS95 ($890/day round-tip TCE).
70,000mt EC Mexico/US Gulf rates
70,000mt EC Mexico/US Gulf rates remain static at WS100 ($4k/day round-trip TCE).
Clean
The CPP tanker market has been tested down again this week for the most part, there have however been a couple of exceptions that have seen some improvement.
In the Middle East Gulf the LR2s of TC1 currently sit at WS89.29 (-WS9.42) a round trip TCE of $2129/day and the most affected this week. The LR1s have been steadfast by comparison and TC5 55k Middle East Gulf / Japan is down 0.96 points to WS97.64 a round-trip TCE of $2407/day. On TC8 the market looks to have settled at $25Pmt ($1.625m) for the moment.
Mediterranean the Handymax rates
In the Mediterranean the Handymax rates have again been whittled away and TC6 30kt Skikda / Lavera has come off WS10 to WS 170.63. The LR2s, TC15 80k Mediterranean / Japan has again fallen at the hands of soft sentiment and currently sits around the $1.85m mark.
Baltic Handymax
The Baltic Handymax held on until the end of the week before finally dropping and TC9 30k Baltic / UK-Continent is now at WS191.79 (-WS8.21).
UK-Continent
On the UK-Continent, MR activity has been relatively steady this week – although unfortunately not enough for freight rates to hold at previous levels. TC2 37k UK-Continent / US Atlantic Coast is currently marked at WS137.22 (-WS9.17) and TC19 37k Amsterdam to Lagos has seen a similar dip of 8.93 points to WS141.43 (a round trip TCE of $7661/day). On LR1s, TC16 60k Amsterdam / Offshore Lomé has been relatively inactive on the face of things, subsequently dropping another 4.08 points to WS100.71.
Americas
In the Americas both runs have seen a welcome upturn off the back of improved activity this week. TC14 38k US Gulf / UK-Continent is now WS 89.29 (+WS4.65) and TC18 38k from US Gulf / Brazil WS 145.71 (+WS13.21).
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Source: Baltic Exchange
