The Baltic Briefing has issued the tanker report for the 20th week of this year. The report dated 28th May 2021 provides a valuable insight into this week’s tanker market dealings, freight rates, and charter activities.
VLCC
In the Middle East the market for 280,000mt to US Gulf (routing via the Cape/Cape) continues to be assessed at WS19-19.5 level and rates for 270,000mt to China have also remained flat at the WS36-36.5 region (showing a round-trip TCE of $3250/day). In the Atlantic, rates for 260,000mt West Africa to China are assessed half a point lower to WS36-36.5 region ($4600/day TCE) on the back of minimal activity this week. However, overnight reports suggest that Glencore have taken the 2008 built Jana at WS40 for East options including India. Meanwhile, 270,000mt from US Gulf to China saw rates improve another $63k to $4.4m (a TCE of about $7.4k/day).
Suezmax
In the 135,000mt Black Sea/Med market rates eased half a point to the WS57.5 mark (a round-trip TCE of about minus $4.9k/day) while in the 130,000mt Nigeria/UK Continent market a similar easing in rates was seen, to WS48.5 (a round trip TCE of minus $300/day). The market for 140,000mt Basrah/Med is now rated four points higher than a week ago at WS22.5-23 level in response to the revised flat rate from Worldscale and the port cost allocation now being on owner’s account.
Aframax
In the Mediterranean, the market is slightly firmer with rates for 80,000mt Ceyhan/Lavera gaining another two points to WS89 (a TCE of about $3.5k/day basis a round voyage). In Northern Europe, rates have modestly improved, with the market for 80,000mt Cross-North Sea gaining 1.5 points to the WS 92.5-93 level (about minus $1.4k/day TCE round trip) while rates for 100,000mt Baltic/UK Continent are up one point to WS68.5 region (a round trip TCE of about $1.8k/day). Across the Atlantic, the market’s weakening continues with rates for 70,000mt Caribbean/US Gulf shedding 12.5 points to just below WS85 (a TCE of about $400/day round trip), while for 70,000mt US Gulf/UK Continent rates remain flat at WS77.5 (showing a round trip TCE of $1.8k/day however basis single trip economics this would be more attractive).
Clean
It has been another difficult week for owners trading MRs in the Atlantic. Charterers have been firmly in the driving seat with the 37,000mts Cont/USAC trade easing from close to mid WS130s at the start of the week to WS115 region now. The US Gulf market has fared little better with rates in the 38,000mts backhaul run to the Continent drifting down five points to very low WS70s and Brazil discharge is now assessed very marginally lower at WS108.75.
In the Middle East Gulf, LR2 owners have seen rates come under relentless downward pressure with the market for 75,000mts to Japan losing 10 points to sit now at WS80 level. The LR1s have been steady, generally hovering in the low/mid WS90s for the natural fixing window, although a forward position was covered at WS100 basis 55,000mts cargo. The MRs here have enjoyed a more productive week with rates moving up four points to WS176 region for 35,000mts in to East Africa.
For owners plying the 30,000mts clean trade in the Mediterranean, rates have hardly moved with WS160 looking established, although in the eastern Mediterranean tonnage is tight. Black Sea rates are seen in the low/mid WS170s, although there was a deal done reportedly below WS160, which is understood to be on non-approved tonnage.
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Source: Baltic Exchange
