The Baltic Briefing has issued the tanker report for the 17th week of this year. The report dated 29th April 2022 provides valuable insight into this week’s tanker market dealings, freight rates, and charter activities.
Upswings in freight for the majority of CPP vessels this week was highlighted by the BCTI rising 173 points to 1249. In the Middle East Gulf, firm sentiment and thinning tonnage has driven the LR2s of TC1 75,000 Middle East Gulf / Japan up 72.86 points to WS234.29. The LR1s also followed suit and TC5 55,000 Middle East Gulf / Japan escalated to WS287.14 (+WS75.71).
The TC17 35,000 Middle East Gulf / East Africa continued to strengthen this week and rates have jumped again, hiking 83.34 points to WS421.67 and the TCE breaching $40,000 per day. West of Suez, on the LR2s, TC15, the 80,000 Mediterranean / Japan run – after a period of resting at $2.9m – has pushed up to just under the $3.5m mark, seeing the TCE also turn positive (currently +$5,000 per day). The LR1s of TC16 60,000 Amsterdam / Offshore Lomé, have come up around 25 points to just under WS200 mark with a still firming sentiment at time of writing. On the UK-Continent, MRs have been very busy.
Both TC2 and TC19 have markedly been the biggest improvers of the week. TC2 rose 96.23 points to WS305.67 and TC19 jumped to WS313.57 (+WS91.43). The USG MR market ticked up after bottoming out midweek. TC14 38,000 US Gulf / UK-Continent came back up 7.14 points to WS176.43 and TC18 the MR US Gulf / Brazil trip also gained an incremental WS4.29 to WS214.29. The MR Atlantic basket TCE rose from $18,510 per day to $31,015 per day. TC9 30,000 Primorsk / Le Havre saw a recharge in activity, coming up WS31.43 to WS350 at the end of week. In the Mediterranean TC6 30,000 Skikda / Lavera’s continued to soften throughout the week losing 75.71 points to WS275.31.
The VLCC sector has seen rates softening in all markets this week. A 280,000mt Middle East Gulf/USG (via Cape of Good Hope) fell 3.75 points to a fraction above WS26, particularly after Exxon were reported to have taken an oil trader’s relet on subjects at WS25 to the UK Continent. In the 270,000mt Middle East Gulf/China market rates decreased two points to WS47 (a round trip TCE of minus $2,800 per day), with Unipec again active on this route.
In the Atlantic region, the reduced demand has kept rates on a downward trajectory. For the 260,000mt West Africa/China route rates have fallen eight points to the WS48.25 level (minus $1,000 per day round-trip TCE). In the 270,000mt US Gulf/China market the rate has shed $625,000 to settle at the $6m mark (a round voyage TCE of minus $1,200 per day).
Rates for the 135,000mt Novorossiysk/Augusta fell a further 75 points this week and are now assessed at the WS175 level (a round-trip TCE of $62,000 per day). In West Africa the pressure on charterers has eased and the rates continue to decline. A 130,000mt Nigeria/UKC is now valued at 40 points lower than last week at WS78 (a round-trip TCE of just below zero $ per day). For the 140,000mt Basrah/West Mediterranean route, the rates have slipped seven points to WS47 with Petroineos, Hellenic and Exxon reported to have taken vessels on subjects around this level.
The 80,000mt Ceyhan/Mediterranean market fell again this week, losing another 16 points to around the WS150 level (a round-trip TCE of $20,100 per day). In Northern Europe the rate for 80,000mt Hound Point/UK Continent came off eight points to WS157.5 (a round-trip TCE of $24,400 per day). In the Baltic Sea the continuing war in Ukraine keeps Russian crude destined for Far Eastern markets and the assessment for the 100,000mt Primorsk/UK Continent trip is now 225 points lower than last week at WS300 (a round voyage TCE of $108,800 per day).
Across the Atlantic, the market continued to trend lower with rates for the shorter-haul 70,000mt EC Mexico/US Gulf route falling 44 points to WS182.5-185 level (a round-trip TCE of $20,600 per day). For the 70,000mt Caribbean/US Gulf trip, rates slipped 43 points this week to the WS177.5-180 region (a round-trip TCE of $20,100 per day). In the 70,000mt US Gulf/UK Continent market, rates are now 20 points lower than a week ago at a fraction above WS167.5 ($16,200 per day round-tip TCE).
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Source: Baltic Exchange