Baltic Exchange has issued the tanker report for the 24th week of this year. This report of 16th June 2023 provides valuable insight into this week’s tanker market dealings, freight rates, and charter activities.
Clean
LR2
MEG LR2’s rebounded late this week, ending the current downturn. Freight levels have begun to climb off the back of firmer sentiment. TC1 bottomed out at WS103.44 and is now at WS106.25 and a TC20 trip west returned back up to $3.1m after flooring out at $2.9m. $3.2m is currently reported on subjects for this run.
West of Suez, Mediterranean/East LR2’s have been sedated this week and the TC15 index is currently pegged at $2.63m, down from $2.7m.
LR1
In the MEG, LR1s have, like their biggest LR2 sisters, improved. TC5 climbed up to just shy of WS140 and a run west on TC8 has also hopped up $175,000 to $2.74m
On the UK-Continent, TC16 has remained level all week, still in the WS125-127.5 region.
MR
MEG MRs have been waiting this week to see the LR improvements filter down to them. The TC17 index has remained stable at WS235 all week.
UK-Continent MR vessels look to be abundant this week and subsequently, rates continued on a downturn. TC2 dipped another 40.83 points to WS126.39 and TC19 shed 41.79 points to WS135.
USG MRs have had a flurry of activity this week seeing freight rate spike in what has become the USG’s usual fashion. The TC14 index dropped from WS104 to WS78.75 and then back up to WS92.5 all over the course of four days. TC18 similarly went from WS167 to WS138 and then back up to WS153 at the time of writing. TC21 dropped from $612,000 to $504,000 then return to $562,500.
The MR Atlantic Triangulation Basket TCE dropped from $23,305 to $15,640.
Handymax
Mediterranean Handymax’s for the fourth week on week held flat around the WS135 mark. Up on the UK-Continent, TC23 continued to mirror the cross Mediterranean Handys all week at WS135.
VLCC
A busier week as charterers appeared to get caught out by the amount of enquiry and the shortening tonnage list, which owners capitalised on. The rate for 270,000 mt Middle East Gulf to China has rocketed 30 points to WS83.41 (a round trip TCE of nearly $73,500 per day basis the Baltic Exchange’s vessel description) while the 280,000mt Middle East Gulf to US Gulf trip (via the cape/cape routing) is now rated 11 points firmer than a week ago at WS45.83.
In the Atlantic market, the rate for 260,000mt West Africa/China saw a slightly less dramatic rise of 25 points to WS78.70 (which shows a round voyage TCE of $67,200 per day). The rate for 270,000mt US Gulf/China is now assessed at $1,933,333 higher than last Friday at $10,033,333 ($50,600 per day round trip TCE).
Suezmax
Suezmaxes have had a busy week, especially in West Africa, where available tonnage has dwindled, an enquiry has been increasing and the Nigerian government has implemented a tax claw-back policy for monies owed during the last few years. The rate for 130,000mt Nigeria/Rotterdam has steadily risen to WS113.75 (a daily round-trip TCE of $48,500), 23.25 points higher than last Friday. A slightly different story elsewhere, as the 135,000mt CPC/Med rate has improved a meagre two points to WS112.39 (producing a daily TCE of $44,500 round-trip) and in the Middle East the rate for 140,000mt Basrah/Lavera has hovered around the WS60 level despite a rise in rates on AG/East runs.
Aframax
In the North Sea, the rate for the 80,000mt Hound Point/Wilhelmshaven slipped another five points to WS135 (showing a round-trip daily TCE of $41,200) and in the Mediterranean the 80,000mt Ceyhan/Lavera rate took another tumble, losing almost 11 points to about WS140 (a daily round trip TCE of close to $37,800).
Across the Atlantic, the Stateside Aframax market has continued on an upward trajectory. The rate for 70,000mt East Coast Mexico/US Gulf rose 36+ points to WS216.88, which shows a TCE of about $67,600/day round trip. For the 70,000mt Covenas/US Gulf trip, the rate increased by about 36 points to WS203.75, representing a round trip TCE of $57,400 per day, and for the trans-Atlantic route of 70,000mt US Gulf/Rotterdam, the rate is another 17.5 points firmer than last Friday at WS195 (a round trip TCE just shy of $53,000 per day), no doubt encouraging some European positioned vessels to ballast over to the US Gulf.
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Source: Baltic Exchange
